Scotiabank's 2020
audited annual consolidated financial statements and accompanying
Management's Discussion & Analysis (MD&A) are available at
www.scotiabank.com along with the supplementary financial
information and regulatory capital disclosure reports, which
includes fourth quarter financial information. All amounts are in
Canadian dollars and are based on our audited annual consolidated
financial statements and accompanying MD&A for the year ended
October 31, 2020 and related notes prepared in accordance with
International Financial Reporting Standards (IFRS), unless
otherwise noted.
Additional
information related to the Bank, including the Bank's Annual
Information Form, can be found on the SEDAR website at
www.sedar.com and on the EDGAR section of the SEC's website at
www.sec.gov.
|
Fiscal 2020
Highlights on a Reported
Basis
(versus Fiscal 2019)
|
Fourth Quarter
2020 Highlights on a Reported Basis (versus Q4,
2019)
|
•
|
Net income of $6,853
million, compared to $8,798 million
|
•
|
Net income of $1,899
million, compared to $2,308 million
|
•
|
Earnings per share
(diluted) of $5.30, compared to $6.68
|
•
|
Earnings per share
(diluted) of $1.42, compared to $1.73
|
•
|
Return on equity of
10.4%, compared to 13.1%
|
•
|
Return on equity of
11.0%, compared to 13.3%
|
•
|
Annual common
dividend per share of $3.60 compared to $3.49, an increase of
3%
|
|
Fiscal 2020
Highlights on an Adjusted
Basis(1)
(versus Fiscal 2019)
|
Fourth Quarter
2020 Highlights on an Adjusted
Basis(1)
(versus Q4, 2019)
|
•
|
Net income of $6,961
million, compared to $9,409 million
|
•
|
Net income of $1,938
million, compared to $2,400 million
|
•
|
Earnings per share
(diluted) of $5.36, compared to $7.14
|
•
|
Earnings per share
(diluted) of $1.45, compared to $1.82
|
•
|
Return on equity of
10.4%, compared to 13.9%
|
•
|
Return on equity of
11.3%, compared to 13.8%
|
Fiscal 2020 Performance versus Medium-Term Objectives
The following table provides a summary of our 2020 performance
against our medium-term financial performance objectives:
Medium-Term
Objectives
|
Fiscal 2020 Results
|
|
Reported
|
Adjusted(1)
|
Diluted earnings per
share growth of 7%+
|
(20.7)%
|
(24.9)%
|
Return on equity of
14%+
|
10.4%
|
10.4%
|
Achieve positive
operating leverage
|
Positive
0.3%
|
Negative
0.6%
|
Maintain strong
capital ratios
|
CET1 capital ratio of
11.8%
|
CET1 capital ratio of
11.8%
|
"The Bank delivered
improved earnings in the fourth quarter with strong operating
results to end a year marked by high loan loss provisions driven by
the global pandemic. Our repositioning efforts have played a
significant role in our operational resilience throughout the
COVID-19 pandemic. With our strengthened capital position and
strong balance sheet, we remain well positioned for future growth
across our footprint. We are encouraged by progress towards a
vaccine and we remain cautiously optimistic about the year ahead.
The Bank is poised to benefit from the economic recovery that is
underway," said Brian Porter, President and CEO of
Scotiabank.
|
TORONTO, Dec. 1, 2020 /CNW/ - Scotiabank reported net
income of $6,853 million for the
fiscal year 2020, compared with net income of $8,798 million in 2019. Diluted earnings per
share (EPS) were $5.30, compared to
$6.68 in the previous year. Return on
equity was 10.4%, compared to 13.1% in the previous year.
Adjusted net income(1) was $6,961 million, down from $9,409 million in the previous year, and EPS were
$5.36 versus $7.14 in the previous year.
Reported net income for the fourth quarter ended October 31, 2020 was $1,899 million compared to $2,308 million in the same period last year.
Diluted earnings per share were $1.42, compared to $1.73 in the same period a year ago. Return on
equity was 11.0% compared to 13.3% a year ago.
________________________
|
(1) Refer to Non-GAAP Measures
section on page 3.
|
Adjusted net income(1) for the fourth quarter ended
October 31, 2020 was $1,938 million and EPS were $1.45, down from $1.82 last year.
"We delivered improved fourth quarter results to end the year on
a strong note. The Bank's resilience during the pandemic reflects
our strong asset quality and the benefits from our investments in
people, processes, and technology as well as our diversified
business model. I am extremely proud of the entire Scotiabank team.
We continue to focus on our customers, while supporting employees,"
said Brian Porter, President and CEO
of Scotiabank. The Bank was recently recognized for outstanding
COVID-19 leadership by Global Finance for its efforts to
support customers, employees, and the broader community throughout
the pandemic.
Canadian Banking generated adjusted earnings of $2,604 million in 2020, which were negatively
impacted by an elevated provision for credit losses driven by
COVID-19. Fourth quarter earnings improved to $782 million, with strong asset growth and stable
margins. The Bank provided customer assistance to over 370,000
customers in Canada this year.
International Banking generated adjusted earnings of
$1,148 million in 2020. The
division's lower earnings were driven by higher provision for
credit losses as a result of COVID-19 and the impact of
divestitures. Fourth quarter earnings were $283 million, up meaningfully from the previous
quarter.
Global Banking and Markets delivered record adjusted earnings of
$2,034 million in 2020, up 33%,
reflecting strong performance in trading, lending, and underwriting
businesses. Record revenues reflected strong performance in Capital
Markets, and good loan and deposit volume growth in Business
Banking. Looking forward, the business will build on its presence
in the Americas, leverage Europe
and Asia-Pacific for distribution
of Americas' products and support global corporate clients.
Global Wealth Management reported adjusted earnings of
$1,297 million in 2020, up 7%. The
results were supported by strong mutual fund net sales in
Canada and record iTRADE volumes.
In 2020, Scotia Global Asset Management was recognized for its
strong performance by winning seven "2019 Lipper Fund" Awards and
27 "FundGrade A+" awards.
The Bank reported a strong Common Equity Tier 1 capital ratio of
11.8% and a liquidity coverage ratio of 138%, a strong position
from which to continue to support its customers and drive future
growth.
"As we look forward to 2021, we will continue to put customers
first and we remain cautiously optimistic that better times lie
ahead as we continue to grow our presence as a leading bank in the
Americas," said Brian Porter,
President and CEO, Scotiabank.
Non-GAAP Measures
The Bank uses a number of financial measures to assess its
performance. Some of these measures are not calculated in
accordance with Generally Accepted Accounting Principles (GAAP),
which are based on International Financial Reporting Standards
(IFRS) as issued by the International Accounting Standards Board
(IASB), are not defined by GAAP and do not have standardized
meanings that would ensure consistency and comparability among
companies using these measures. The Bank believes that certain
non-GAAP measures are useful in assessing ongoing business
performance and provide readers with a better understanding of how
management assesses performance. These non-GAAP measures are used
throughout this press release and are defined in the "Non-GAAP
Measures" section of our 2020 Annual Report to Shareholders.
Adjusted results and diluted earnings per share
The following tables present reconciliations of GAAP Reported
financial results to Non-GAAP Adjusted financial results. The
financial results have been adjusted for the following:
1) Acquisition and divestiture-related amounts –
Acquisition and divestiture-related amounts are defined as:
A) Acquisition-related costs
- Integration costs – Includes costs that are incurred and relate
to integrating the acquired operations and are recorded in the
Global Wealth Management and International Banking operating
segments. These costs will cease once integration is complete. The
costs relate to the following acquisitions:
- Banco Cencosud, Peru
(closed Q2, 2019)
- Banco Dominicano del Progreso, Dominican Republic (closed Q2,
2019)
- MD Financial Management, Canada (closed Q4, 2018)
- Jarislowsky, Fraser Limited, Canada (closed Q3, 2018)
- Citibank consumer and small and medium enterprise operations,
Colombia (closed Q3,
2018)
- BBVA, Chile (closed Q3,
2018)
- Day 1 provision for credit losses on acquired performing
financial instruments, as required by IFRS 9. The standard does not
differentiate between originated and purchased performing loans and
as such, requires the same accounting treatment for both. These
credit losses are considered Acquisition-related costs in periods
where applicable and are recorded in the International Banking
segment. The provision for 2019 relates to Banco Cencosud,
Peru and Banco Dominicano del
Progreso, Dominican Republic.
- Amortization of Acquisition-related intangible assets,
excluding software. These costs relate to the six acquisitions
above, as well as prior acquisitions and are recorded in the
Canadian Banking, International Banking and Global Wealth
Management operating segments.
B) Net (gain)/loss on divestitures – The Bank
announced a number of divestitures in accordance with its strategy
to reposition the Bank. The net (gain)/loss on divestitures is
recorded in the Other segment, and relates to the following
divestitures:
- Operations in Antigua and
Barbuda (announced Q4, 2020)
- Operations in British Virgin
Islands (closed Q3, 2020)
- Operations in Belize
(announced Q3, 2020)
- Equity-accounted investment in Thanachart Bank, Thailand (closed Q1, 2020)
- Colfondos AFP, Colombia
(closed Q1, 2020)
- Operations in Puerto Rico and
USVI (closed Q1, 2020)
- Insurance and banking operations in El Salvador (closed Q1,
2020)
- Banking operations in the Caribbean (closed Q4, 2019)
- Insurance and pension operations in the Dominican Republic (closed Q2,
2019)
2) Valuation-related adjustments, recorded in Q1,
2020 (pre-tax $315
million) – The Bank modified its allowance for credit
losses measurement methodology by adding an additional, more severe
pessimistic scenario, consistent with developing practice among
major international banks in applying IFRS 9, and the Bank's
prudent approach to expected credit loss provisioning. The
modification resulted in an increase in provision for credit losses
of $155 million which was recorded in
Canadian Banking, International Banking, Global Wealth Management
and Global Banking and Markets operating segments. The Bank
enhanced its fair value methodology primarily relating to
uncollateralized OTC derivatives which resulted in a pre-tax charge
of $116 million. This charge was
recorded in the Global Banking and Markets and Other operating
segments. The Bank also recorded an impairment loss in the Other
operating segment of $44 million
pre-tax, related to one software asset.
Reconciliation of
reported and adjusted results and diluted earnings per
share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the year
ended
|
($
millions)
|
October
31
2020
|
July 31
2020
|
October 31
2019
|
October
31
2020
|
October 31
2019
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,258
|
$
|
4,253
|
$
|
4,336
|
$
|
17,320
|
$
|
17,177
|
Non-interest
income
|
|
3,247
|
|
3,481
|
|
3,632
|
|
14,016
|
|
13,857
|
Total Revenue
|
|
7,505
|
|
7,734
|
|
7,968
|
|
31,336
|
|
31,034
|
Provision for credit
losses
|
|
1,131
|
|
2,181
|
|
753
|
|
6,084
|
|
3,027
|
Non-interest
expenses
|
|
4,057
|
|
4,018
|
|
4,311
|
|
16,856
|
|
16,737
|
Income before
taxes
|
|
2,317
|
|
1,535
|
|
2,904
|
|
8,396
|
|
11,270
|
Income tax
expense
|
|
418
|
|
231
|
|
596
|
|
1,543
|
|
2,472
|
Net
income
|
$
|
1,899
|
$
|
1,304
|
$
|
2,308
|
$
|
6,853
|
$
|
8,798
|
Net income
attributable to non-controlling interests in subsidiaries
(NCI)
|
|
72
|
|
(51)
|
|
107
|
|
75
|
|
408
|
Net income
attributable to equity holders
|
$
|
1,827
|
$
|
1,355
|
$
|
2,201
|
$
|
6,778
|
$
|
8,390
|
Preferred
shareholders and other equity instrument holders
|
|
82
|
|
23
|
|
64
|
|
196
|
|
182
|
Net income
attributable to common shareholders
|
$
|
1,745
|
$
|
1,332
|
$
|
2,137
|
$
|
6,582
|
$
|
8,208
|
Diluted earnings
per share (in dollars)
|
$
|
1.42
|
$
|
1.04
|
$
|
1.73
|
$
|
5.30
|
$
|
6.68
|
Adjustments
|
|
|
|
|
|
|
|
|
|
|
Acquisition-related
amounts
|
|
|
|
|
|
|
|
|
|
|
Day 1 provision for credit
losses on acquired performing
|
|
|
|
|
|
|
|
|
|
|
financial instruments(1)
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
151
|
Integration
costs(2)
|
|
20
|
|
40
|
|
79
|
|
177
|
|
178
|
Amortization of
Acquisition-related intangible assets, excluding
|
|
|
|
|
|
|
|
|
|
|
software(2)
|
|
26
|
|
26
|
|
28
|
|
106
|
|
116
|
Acquisition-related
costs
|
|
46
|
|
66
|
|
107
|
|
283
|
|
445
|
Allowance for credit
losses - Additional scenario(1)
|
|
-
|
|
-
|
|
-
|
|
155
|
|
-
|
Derivatives valuation
adjustment(3)
|
|
-
|
|
-
|
|
-
|
|
116
|
|
-
|
Net (gain)/loss on
divestitures(4)
|
|
8
|
|
(44)
|
|
1
|
|
(298)
|
|
148
|
Impairment charge on
software asset(2)
|
|
-
|
|
-
|
|
-
|
|
44
|
|
-
|
Adjustments
(Pre-tax)
|
|
54
|
|
22
|
|
108
|
|
300
|
|
593
|
Income tax
expense/(benefit)
|
|
(15)
|
|
(18)
|
|
(16)
|
|
(192)
|
|
18
|
Adjustments (After
tax)
|
|
39
|
|
4
|
|
92
|
|
108
|
|
611
|
Adjustment
attributable to NCI
|
|
-
|
|
(5)
|
|
5
|
|
(60)
|
|
(50)
|
Adjustments (After
tax and NCI)
|
$
|
39
|
$
|
(1)
|
$
|
97
|
$
|
48
|
$
|
561
|
Adjusted
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
4,258
|
$
|
4,253
|
$
|
4,336
|
$
|
17,320
|
$
|
17,177
|
Non-interest
income
|
|
3,247
|
|
3,436
|
|
3,626
|
|
13,819
|
|
13,984
|
Total revenue
|
|
7,505
|
|
7,689
|
|
7,962
|
|
31,139
|
|
31,161
|
Provision for credit
losses
|
|
1,131
|
|
2,181
|
|
753
|
|
5,929
|
|
2,876
|
Non-interest
expenses
|
|
4,003
|
|
3,951
|
|
4,197
|
|
16,514
|
|
16,422
|
Income before
taxes
|
|
2,371
|
|
1,557
|
|
3,012
|
|
8,696
|
|
11,863
|
Income tax
expense
|
|
433
|
|
249
|
|
612
|
|
1,735
|
|
2,454
|
Net
income
|
$
|
1,938
|
$
|
1,308
|
$
|
2,400
|
$
|
6,961
|
$
|
9,409
|
Net income
attributable to NCI
|
|
72
|
|
(46)
|
|
102
|
|
135
|
|
458
|
Net income
attributable to equity holders
|
$
|
1,866
|
$
|
1,354
|
$
|
2,298
|
$
|
6,826
|
$
|
8,951
|
Preferred
shareholders and other equity instrument holders
|
|
82
|
|
23
|
|
64
|
|
196
|
|
182
|
Net income
attributable to common shareholders
|
$
|
1,784
|
$
|
1,331
|
$
|
2,234
|
$
|
6,630
|
$
|
8,769
|
Adjusted diluted
earnings per share (in dollars)
|
$
|
1.45
|
$
|
1.04
|
$
|
1.82
|
$
|
5.36
|
$
|
7.14
|
Impact of
adjustments on diluted earnings per share (in
dollars)
|
$
|
0.03
|
$
|
-
|
$
|
0.09
|
$
|
0.06
|
$
|
0.46
|
(1)
|
Recorded in
provision for credit losses.
|
(2)
|
Recorded in
non-interest expenses.
|
(3)
|
Recorded in
non-interest income.
|
(4)
|
(Gain)/loss on
divestitures is recorded in non-interest income; costs related to
divestitures are recorded in non-interest expenses.
|
Reconciliation of
reported and adjusted results by business
line(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
($
millions)
|
Canadian
Banking
|
International
Banking
|
Global
Wealth
Management
|
Global Banking
and Markets
|
Other
|
Total
|
|
|
For the three
months ended October 31, 2020
|
Reported net
income
|
$
|
778
|
$
|
333
|
$
|
325
|
$
|
460
|
$
|
3
|
$
|
1,899
|
Total adjustments
(after tax)
|
|
4
|
|
20
|
|
10
|
|
-
|
|
5
|
|
39
|
Adjusted net
income
|
$
|
782
|
$
|
353
|
$
|
335
|
$
|
460
|
$
|
8
|
$
|
1,938
|
Adjusted net
income attributable to equity holders
|
$
|
782
|
$
|
283
|
$
|
333
|
$
|
460
|
$
|
8
|
$
|
1,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended July 31, 2020
|
Reported net
income
|
$
|
429
|
$
|
(28)
|
$
|
324
|
$
|
600
|
$
|
(21)
|
$
|
1,304
|
Total adjustments
(after tax)
|
|
4
|
|
32
|
|
11
|
|
-
|
|
(43)
|
|
4
|
Adjusted net
income
|
$
|
433
|
$
|
4
|
$
|
335
|
$
|
600
|
$
|
(64)
|
$
|
1,308
|
Adjusted net income
attributable to equity holders
|
$
|
433
|
$
|
53
|
$
|
332
|
$
|
600
|
$
|
(64)
|
$
|
1,354
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended October 31, 2019
|
Reported net
income
|
$
|
898
|
$
|
765
|
$
|
303
|
$
|
405
|
$
|
(63)
|
$
|
2,308
|
Total adjustments
(after tax)
|
|
4
|
|
58
|
|
15
|
|
-
|
|
15
|
|
92
|
Adjusted net
income
|
$
|
902
|
$
|
823
|
$
|
318
|
$
|
405
|
$
|
(48)
|
$
|
2,400
|
Adjusted net income
attributable to equity holders
|
$
|
902
|
$
|
725
|
$
|
314
|
$
|
405
|
$
|
(48)
|
$
|
2,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
October 31, 2020
|
Reported net
income
|
$
|
2,536
|
$
|
1,072
|
$
|
1,262
|
$
|
1,955
|
$
|
28
|
$
|
6,853
|
Total adjustments
(after tax)
|
|
68
|
|
200
|
|
45
|
|
79
|
|
(284)
|
|
108
|
Adjusted net
income
|
$
|
2,604
|
$
|
1,272
|
$
|
1,307
|
$
|
2,034
|
$
|
(256)
|
$
|
6,961
|
Adjusted net
income attributable to equity holders
|
$
|
2,604
|
$
|
1,148
|
$
|
1,297
|
$
|
2,034
|
$
|
(257)
|
$
|
6,826
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the year ended
October 31, 2019
|
Reported net
income
|
$
|
3,488
|
$
|
3,138
|
$
|
1,184
|
$
|
1,534
|
$
|
(546)
|
$
|
8,798
|
Total adjustments
(after tax)
|
|
16
|
|
254
|
|
49
|
|
-
|
|
292
|
|
611
|
Adjusted net
income
|
$
|
3,504
|
$
|
3,392
|
$
|
1,233
|
$
|
1,534
|
$
|
(254)
|
$
|
9,409
|
Adjusted net income
attributable to equity holders
|
$
|
3,504
|
$
|
2,953
|
$
|
1,215
|
$
|
1,534
|
$
|
(255)
|
$
|
8,951
|
(1)
|
Refer to Business
Line Overview in the 2020 Annual Report to
Shareholders.
|
Financial Highlights
|
As at and
for the three months ended
|
As at and for the
year ended
|
|
October
31
|
July 31
|
October
31
|
October
31
|
October
31
|
|
2020
(1)
|
2020
(1)
|
2019
|
2020
(1)
|
2019
|
Operating
results ($ millions)
|
|
|
|
|
|
Net interest
income
|
4,258
|
4,253
|
4,336
|
17,320
|
17,177
|
Non-interest
income
|
3,247
|
3,481
|
3,632
|
14,016
|
13,857
|
Total
revenue
|
7,505
|
7,734
|
7,968
|
31,336
|
31,034
|
Provision for credit
losses
|
1,131
|
2,181
|
753
|
6,084
|
3,027
|
Non-interest
expenses
|
4,057
|
4,018
|
4,311
|
16,856
|
16,737
|
Income tax
expense
|
418
|
231
|
596
|
1,543
|
2,472
|
Net income
|
1,899
|
1,304
|
2,308
|
6,853
|
8,798
|
Net income
attributable to common shareholders of the Bank
|
1,745
|
1,332
|
2,137
|
6,582
|
8,208
|
Operating
performance
|
|
|
|
|
|
Basic earnings per
share ($)
|
1.44
|
1.10
|
1.76
|
5.43
|
6.72
|
Diluted earnings per
share ($)
|
1.42
|
1.04
|
1.73
|
5.30
|
6.68
|
Return on equity
(%)
|
11.0
|
8.3
|
13.3
|
10.4
|
13.1
|
Productivity ratio
(%)
|
54.1
|
52.0
|
54.1
|
53.8
|
53.9
|
Operating leverage
(%)
|
|
|
|
0.3
|
(3.3)
|
Core banking margin
(%)(2)
|
2.22
|
2.10
|
2.40
|
2.27
|
2.44
|
Financial position
information ($ millions)
|
|
|
|
|
|
Cash and deposits
with financial institutions
|
76,460
|
59,041
|
46,720
|
|
|
Trading
assets
|
117,839
|
123,754
|
127,488
|
|
|
Loans
|
603,263
|
613,351
|
592,483
|
|
|
Total
assets
|
1,136,466
|
1,169,872
|
1,086,161
|
|
|
Deposits
|
750,838
|
767,993
|
733,390
|
|
|
Common
equity
|
62,819
|
62,883
|
63,638
|
|
|
Preferred shares and
other equity instruments
|
5,308
|
5,308
|
3,884
|
|
|
Assets under
administration
|
558,594
|
558,391
|
558,408
|
|
|
Assets under
management
|
291,701
|
293,412
|
301,631
|
|
|
Capital and
liquidity measures
|
|
|
|
|
|
Common Equity Tier 1
(CET1) capital ratio (%)
|
11.8
|
11.3
|
11.1
|
|
|
Tier 1 capital ratio
(%)
|
13.3
|
12.8
|
12.2
|
|
|
Total capital ratio
(%)
|
15.5
|
14.9
|
14.2
|
|
|
Leverage ratio
(%)
|
4.7
|
4.6
|
4.2
|
|
|
Risk-weighted assets
($ millions)
|
417,138
|
430,542
|
421,185
|
|
|
Liquidity coverage
ratio (LCR) (%)
|
138
|
141
|
125
|
|
|
Credit
quality
|
|
|
|
|
|
Net impaired loans ($
millions)
|
3,096
|
3,361
|
3,540
|
|
|
Allowance for credit
losses ($ millions)(3)
|
7,820
|
7,403
|
5,145
|
|
|
Gross impaired loans
as a % of loans and acceptances
|
0.81
|
0.81
|
0.84
|
|
|
Net impaired loans as
a % of loans and acceptances
|
0.50
|
0.53
|
0.58
|
|
|
Provision for credit
losses as a % of average net loans and
acceptances(4)
|
0.73
|
1.36
|
0.50
|
0.98
|
0.51
|
Provision for credit
losses on impaired loans as a % of average net loans and
acceptances(4)
|
0.54
|
0.58
|
0.49
|
0.56
|
0.49
|
Net write-offs as a %
of average net loans and acceptances
|
0.41
|
0.47
|
0.49
|
0.47
|
0.50
|
Adjusted
results(2)
|
|
|
|
|
|
Adjusted net income
($ millions)
|
1,938
|
1,308
|
2,400
|
6,961
|
9,409
|
Adjusted diluted
earnings per share ($)
|
1.45
|
1.04
|
1.82
|
5.36
|
7.14
|
Adjusted return on
equity (%)
|
11.3
|
8.3
|
13.8
|
10.4
|
13.9
|
Adjusted productivity
ratio (%)
|
53.3
|
51.4
|
52.7
|
53.0
|
52.7
|
Adjusted operating
leverage (%)
|
|
|
|
(0.6)
|
(2.1)
|
Adjusted provision
for credit losses as a % of average net loans and
acceptances(4)
|
0.73
|
1.36
|
0.50
|
0.95
|
0.49
|
Common share
information
|
|
|
|
|
|
Closing share price
($) (TSX)
|
55.35
|
55.01
|
75.54
|
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
Average –
Basic
|
1,211
|
1,211
|
1,218
|
1,212
|
1,222
|
|
Average –
Diluted
|
1,246
|
1,245
|
1,260
|
1,243
|
1,251
|
|
End of
period
|
1,211
|
1,211
|
1,216
|
|
|
Dividends paid per
share ($)
|
0.90
|
0.90
|
0.90
|
3.60
|
3.49
|
Dividend yield
(%)(5)
|
6.4
|
6.5
|
5.0
|
5.8
|
4.9
|
Market capitalization
($ millions) (TSX)
|
67,055
|
66,641
|
91,867
|
|
|
Book value per common
share ($)
|
51.85
|
51.91
|
52.33
|
|
|
Market value to book
value multiple
|
1.1
|
1.1
|
1.4
|
|
|
Price to earnings
multiple (trailing 4 quarters)
|
10.2
|
9.6
|
11.2
|
|
|
Other
information
|
|
|
|
|
|
Employees (full-time
equivalent)
|
92,001
|
95,369
|
101,813
|
|
|
Branches and
offices
|
2,618
|
2,905
|
3,109
|
|
|
(1)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior period amounts have not been
restated.
|
(2)
|
Refer to page 3
for a discussion of Non-GAAP measures.
|
(3)
|
Includes allowance
for credit losses on all financial assets - loans, acceptances,
off-balance sheet exposures, debt securities, and deposits with
financial institutions.
|
(4)
|
Includes provision
for credit losses on certain financial assets - loans, acceptances,
and off-balance sheet exposures.
|
(5)
|
Based on the
average of the high and low common share price for the
period.
|
Impact of Foreign Currency Translation
|
|
Average exchange
rate
|
% Change
|
|
|
|
|
October
31
2020
|
|
July 31
2020
|
|
|
October 31
2019
|
|
October 31,
2020
vs. July 31,
2020
|
October 31,
2020
vs. October 31,
2019
|
|
For the three months
ended
|
|
|
|
|
|
U.S. Dollar/Canadian
Dollar
|
|
0.756
|
|
0.731
|
|
|
0.756
|
|
3.5
|
%
|
0.1
|
%
|
Mexican Peso/Canadian
Dollar
|
|
16.390
|
|
16.622
|
|
|
14.752
|
|
(1.4)
|
%
|
11.1
|
%
|
Peruvian Sol/Canadian
Dollar
|
|
2.701
|
|
2.538
|
|
|
2.542
|
|
6.4
|
%
|
6.2
|
%
|
Colombian
Peso/Canadian Dollar
|
|
2,866
|
|
2,733
|
|
|
2,583
|
|
4.9
|
%
|
11.0
|
%
|
Chilean Peso/Canadian
Dollar
|
|
591.628
|
|
584.980
|
|
|
542.205
|
|
1.1
|
%
|
9.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average exchange
rate
|
|
% Change
|
|
|
|
|
|
|
|
|
|
October
31
2020
|
|
October 31
2019
|
|
October 31,
2020
vs. October 31,
2019
|
|
For the year
ended
|
|
|
|
|
|
|
|
|
|
U.S. Dollar/Canadian
Dollar
|
|
|
|
|
|
|
0.744
|
|
0.753
|
|
(1.2)
|
%
|
Mexican Peso/Canadian
Dollar
|
|
|
|
|
|
|
15.832
|
|
14.607
|
|
8.4
|
%
|
Peruvian Sol/Canadian
Dollar
|
|
|
|
|
|
|
2.569
|
|
2.512
|
|
2.3
|
%
|
Colombian
Peso/Canadian Dollar
|
|
|
|
|
|
|
2,722
|
|
2,447
|
|
11.2
|
%
|
Chilean Peso/Canadian
Dollar
|
|
|
|
|
|
|
591.712
|
|
517.805
|
|
14.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months
ended
|
For the year
ended
|
|
Impact on net
income(1) ($ millions except EPS)
|
|
|
October 31,
2020
vs. October 31,
2019
|
|
October 31,
2020
vs. July 31,
2020
|
|
October 31,
2020
vs. October 31,
2019
|
|
|
|
|
|
|
Net interest
income
|
|
|
|
|
|
$
|
(136)
|
$
|
(62)
|
$
|
(481)
|
|
Non-interest
income(2)
|
|
|
|
|
|
|
(65)
|
|
(62)
|
|
(196)
|
|
Non-interest
expenses
|
|
|
|
|
|
|
111
|
|
44
|
|
397
|
|
Other items (net of
tax)
|
|
|
|
|
|
|
66
|
|
41
|
|
261
|
|
Net income
|
|
|
|
|
|
$
|
(24)
|
$
|
(39)
|
$
|
(19)
|
|
Earnings per share
(diluted)
|
|
|
|
|
|
$
|
(0.02)
|
$
|
(0.03)
|
$
|
(0.02)
|
|
Impact by business
line ($ millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
Banking
|
|
|
|
|
|
$
|
-
|
$
|
-
|
$
|
2
|
|
International
Banking(2)
|
|
|
|
|
|
|
(15)
|
|
(5)
|
|
(23)
|
|
Global Wealth
Management
|
|
|
|
|
|
|
(3)
|
|
(2)
|
|
(9)
|
|
Global Banking and
Markets
|
|
|
|
|
|
|
(1)
|
|
(6)
|
|
11
|
|
Other(2)
|
|
|
|
|
|
|
(5)
|
|
(26)
|
|
-
|
|
Net Income
|
|
|
|
|
|
$
|
(24)
|
$
|
(39)
|
$
|
(19)
|
|
(1)
|
Includes impact of
all currencies.
|
(2)
|
Includes the
impact of foreign currency hedges.
|
Impact of Divested Operations
|
|
For the three months
ended
|
For the year
ended
|
|
|
October
31
2020
|
July 31
2020
|
October 31
2019
|
October
31
2020
|
October 31
2019
|
($
millions)
|
Net interest
income
|
$
|
-
|
$
|
1
|
$
|
102
|
$
|
76
|
$
|
432
|
Non-interest
income
|
|
-
|
|
2
|
|
223
|
|
72
|
|
847
|
Total
Revenue
|
|
-
|
|
3
|
|
325
|
|
148
|
|
1,279
|
Provision for credit
losses
|
|
-
|
|
1
|
|
11
|
|
8
|
|
11
|
Non-interest
expenses
|
|
-
|
|
1
|
|
96
|
|
65
|
|
404
|
Income before
taxes
|
|
-
|
|
1
|
|
218
|
|
75
|
|
864
|
Income tax
expense
|
|
-
|
|
-
|
|
56
|
|
15
|
|
210
|
Net income
|
$
|
-
|
$
|
1
|
$
|
162
|
$
|
60
|
$
|
654
|
Net income
attributable to non-controlling interests (NCI)
|
|
-
|
|
-
|
|
2
|
|
-
|
|
7
|
Net income
attributable to equity holders - relating to divested
operations
|
$
|
-
|
$
|
1
|
$
|
160
|
$
|
60
|
$
|
647
|
|
|
|
|
|
|
|
For the three months
ended
|
For the year
ended
|
|
|
|
|
|
|
October 31,
2020
|
October 31,
2020
|
October 31,
2020
|
Impact on net income
($ millions except EPS)
|
vs. July 31,
2020
|
vs. October 31,
2019
|
vs. October 31,
2019
|
Net interest
income
|
|
|
|
|
$
|
(1)
|
$
|
(102)
|
$
|
(356)
|
Non-interest
income
|
|
|
|
|
|
(2)
|
|
(223)
|
|
(775)
|
Total
Revenue
|
|
|
|
|
|
(3)
|
|
(325)
|
|
(1,131)
|
Provision for credit
losses
|
|
|
|
|
|
(1)
|
|
(11)
|
|
(3)
|
Non-interest
expenses
|
|
|
|
|
|
(1)
|
|
(96)
|
|
(339)
|
Income before
taxes
|
|
|
|
|
|
(1)
|
|
(218)
|
|
(789)
|
Income tax
expense
|
|
|
|
|
|
-
|
|
(56)
|
|
(195)
|
Net income
|
|
|
|
|
$
|
(1)
|
$
|
(162)
|
$
|
(594)
|
Net income
attributable to equity holders
|
|
|
|
|
$
|
(1)
|
$
|
(160)
|
$
|
(587)
|
Earnings per share
(diluted)
|
|
|
|
|
$
|
-
|
$
|
(0.13)
|
$
|
(0.47)
|
Group Financial Performance
Net income
Q4 2020 vs Q4 2019
Net
income was $1,899 million compared to
$2,308 million. Adjusted net income
was $1,938 million compared to
$2,400 million, down 19%, due mainly
to lower non-interest income and higher provision for credit
losses, partially offset by lower non-interest expenses and
provision for income taxes.
Q4 2020 vs Q3 2020
Net income was $1,899 million compared to $1,304 million. Adjusted net income was
$1,938 million compared to
$1,308 million, an increase of 48%,
due mainly to lower provision for credit losses, partially offset
by lower non-interest income and higher provision for income
taxes.
Total revenue
Q4 2020 vs Q4
2019
Revenues were $7,505
million, a decrease of $463
million or 6%. Adjusted revenues were $7,505 million, a decrease of $457 million or 6%, due mainly to lower net
interest income and non-interest income, negatively impacted by
divested operations.
Q4 2020 vs Q3 2020
Revenues were $7,505 million, a decrease of $229 million or 3%. Adjusted revenues were
$7,505 million, a decrease of
$184 million or 2%, due mainly to
lower non-interest income driven by lower trading revenues.
Net interest income
Q4 2020 vs Q4
2019
Net interest income was $4,258 million, a decrease of $78 million or 2%. Asset growth and higher
contribution from asset/liability management activities were more
than offset by the negative impact of foreign currency translation
and divested operations.
The core banking margin was down 18 basis points to 2.22%,
driven by lower margins across all business lines due to the impact
of central bank rate cuts and changes in business mix, as well as
increased levels of lower-margin liquid assets.
Q4 2020 vs Q3 2020
Net interest income was in
line with the previous quarter. Higher contribution from
asset/liability management activities was offset by lower asset
volume and the negative impact of foreign currency translation.
The core banking margin was up 12 basis points to 2.22%, driven
primarily by higher contribution from asset/liability management
activities and lower volumes of lower-margin high quality liquid
assets. Margins were stable across all business lines.
Non-interest income
Q4 2020 vs Q4
2019
Non-interest income was $3,247 million, down $385
million or 11%. Adjusted non-interest income declined
$379 million or 10%. The impact of
divestitures was approximately 5%. The remaining 5% decrease was
due to lower banking revenues, insurance revenues, other fees and
commissions, as well as the negative impact of foreign currency
translation. These were partly offset by higher trading
revenues.
Q4 2020 vs Q3 2020
Non-interest income was down
$234 million or 7%. Adjusted
non-interest income decreased by $189
million or 6%, due primarily to lower trading revenues and
underwriting and advisory fees, partly offset by higher banking
revenues in Canadian and International Banking, and higher wealth
management fees.
Provision for credit losses
Q4 2020 vs Q4
2019
The provision for credit losses was $1,131 million, an increase of $378 million or 50%. The provision for
credit losses ratio increased 23 basis points to 73 basis
points.
The provision on impaired loans was $835
million, compared to $744
million, up $91 million due
primarily to higher commercial and corporate loan provisions,
partially offset by lower retail provisions. The provision for
credit losses ratio on impaired loans was 54 basis points, an
increase of five basis points.
The provision on performing loans was $296 million, compared to $9 million, an increase of $287 million of which $167
million related to retail, mainly in International Banking.
Commercial and corporate loan provisions increased $120 million across all business lines. The
increase is due primarily to the COVID-19 pandemic impact on the
performing portfolio driven by the unfavourable macroeconomic
outlook and its estimated future impact on credit migration.
Q4 2020 vs Q3 2020
The provision for credit
losses was $1,131 million, a decrease
of $1,050 million. The provision for
credit losses ratio decreased 63 basis points to 73 basis
points.
The provision on impaired loans was $835
million, compared to $928
million, a decrease of $93
million or 10%, due primarily to lower retail provisions
driven by lower delinquencies and credit migration. The
provision for credit losses ratio on impaired loans was 54 basis
points, a decrease of four basis points.
The provision for performing loans was $296 million, compared to $1,253 million, a decrease of $957 million of which $752
million related to retail and $205
million related to commercial. The decrease was driven
primarily by improving macroeconomic outlook and stabilizing
portfolio credit quality.
Non-interest expenses
Q4 2020 vs Q4
2019
Non-interest expenses were $4,057 million, down $254
million or 6%. Adjusted non-interest expenses of
$4,003 million declined by 5%, of
which 2% related to the impact of divested operations. The
remaining 3% decrease was due to lower professional fees,
advertising and business development expenses and the positive
impact of foreign currency translation, partly offset by the impact
of COVID-19 related costs.
The productivity ratio was 54.1%, in line with last year. On an
adjusted basis, the productivity ratio was 53.3%, compared to
52.7%.
Q4 2020 vs Q3 2020
Non-interest expenses were
up $39 million or 1%. Adjusted
non-interest expenses were also up by 1%, due to higher personnel
costs and technology, partly offset by the positive impact of
foreign currency translation.
The productivity ratio was 54.1% compared to 52.0%. On an
adjusted basis, the productivity ratio was 53.3%, compared to
51.4%.
Provision for income taxes
Q4 2020 vs Q4
2019
The effective tax rate was 18.0% compared to 20.5%,
due primarily to changes in earnings mix across businesses and
jurisdictions.
Q4 2020 vs Q3 2020
The effective tax rate was
18.0% compared to 15.1%, due primarily to significantly higher
provision for credit losses recorded in entities that operate in
higher tax rate jurisdictions in the prior quarter.
Capital Ratios
The Bank continues to maintain strong, high quality capital
levels which position it well for resiliency during the COVID-19
pandemic. The CET1 ratio as at October 31,
2020 was 11.8%, an increase of approximately 70 basis points
from the prior year due primarily to strong internal capital
generation and the impact from the Bank's divestitures during the
year, partly offset by the adoption of regulatory changes, the
impact from foreign currency translation on capital requirements,
the remeasurement of the employee pension obligations, and share
buybacks. The CET1 ratio also benefited 30 basis points from OSFI's
transitional adjustment for the partial inclusion of increases in
Stage 1 and Stage 2 expected credit losses (ECL) relative to their
pre-crisis baseline levels as at January 31,
2020.
The Bank's Tier 1 capital ratio was 13.3% as at October 31, 2020, an increase of approximately
110 basis points from the prior year, due primarily to the issuance
of US$1.25 billion of Scotiabank
additional Tier 1 capital securities and the above noted impacts to
the CET1 ratio, partly offset by the redemption of $265 million of preferred shares during the year.
The Total capital ratio was 15.5% as at October 31, 2020, an increase of approximately
130 basis points from 2019, due primarily to the above noted
changes to the CET1 and Tier 1 capital ratios.
The Leverage ratio was 4.7%, an increase of approximately 50
basis points in 2020 due primarily to OSFI's temporary Leverage
ratio exclusions for central bank reserves and sovereign-issued
securities and transitional adjustment for the partial inclusion of
ECL, internal capital generation and the issuance of US$1.25 billion of Scotiabank additional Tier 1
capital securities, partly offset by the redemption of $265 million of preferred shares during the
year.
The Bank's capital ratios continue to be well in excess of
OSFI's minimum capital ratio requirements for 2020 of 9.0%, 10.5%
and 12.5% for CET1, Tier 1 and Total Capital, respectively. The
Bank was well above the OSFI minimum Leverage ratio as at
October 31, 2020.
Business Segment Review
Canadian
Banking
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
(2)
|
|
July 31
2020
(2)
|
|
October 31
2019 (3)
|
|
October
31
2020
(2)
|
|
October 31
2019
(3)
|
(Taxable
equivalent basis)(1)
|
|
|
|
|
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,954
|
$
|
1,930
|
$
|
2,027
|
$
|
7,838
|
$
|
7,848
|
Non-interest
income(4)
|
|
612
|
|
570
|
|
656
|
|
2,461
|
|
2,616
|
Total
revenue
|
|
2,566
|
|
2,500
|
|
2,683
|
|
10,299
|
|
10,464
|
Provision for credit
losses
|
|
330
|
|
752
|
|
247
|
|
2,073
|
|
972
|
Non-interest
expenses
|
|
1,186
|
|
1,172
|
|
1,220
|
|
4,811
|
|
4,772
|
Income tax
expense
|
|
272
|
|
147
|
|
318
|
|
879
|
|
1,232
|
Net
income
|
$
|
778
|
$
|
429
|
$
|
898
|
$
|
2,536
|
$
|
3,488
|
Net income
attributable to equity holders of the Bank
|
$
|
778
|
$
|
429
|
$
|
898
|
$
|
2,536
|
$
|
3,488
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
18.4%
|
|
10.1%
|
|
23.3%
|
|
15.1%
|
|
23.2%
|
Average assets ($
billions)
|
$
|
363
|
$
|
359
|
$
|
349
|
$
|
359
|
$
|
340
|
Average liabilities
($ billions)
|
$
|
295
|
$
|
283
|
$
|
263
|
$
|
277
|
$
|
255
|
(1)
|
Results are
presented on a taxable equivalent basis. Refer to Business Line
Overview section of the Bank's 2020 Annual Report to
Shareholders.
|
(2)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior year amounts have not been
restated.
|
(3)
|
The amounts for
the periods ended October 31, 2019 have been restated to reflect
the impact of the establishment of Global Wealth Management as a
separate business segment.
|
(4)
|
Includes net
income from investments in associated corporations for the three
months ended October 31, 2020 - $15 (July 31, 2020 - $9; October
31, 2019 - $18) and for the year ended October 31, 2020 - $56
(October 31, 2019 - $65).
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
|
|
July 31
2020
|
|
October 31
2019
|
|
October
31
2020
|
|
October 31
2019
|
(Taxable
equivalent basis)
|
|
|
|
|
|
Adjusted
Results(1)
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,954
|
$
|
1,930
|
$
|
2,027
|
$
|
7,838
|
$
|
7,848
|
Non-interest
income
|
|
612
|
|
570
|
|
656
|
|
2,461
|
|
2,616
|
Total
revenue
|
|
2,566
|
|
2,500
|
|
2,683
|
|
10,299
|
|
10,464
|
Provision for credit
losses
|
|
330
|
|
752
|
|
247
|
|
2,002
|
|
972
|
Non-interest
expenses
|
|
1,180
|
|
1,167
|
|
1,214
|
|
4,789
|
|
4,750
|
Income tax
expense
|
|
274
|
|
148
|
|
320
|
|
904
|
|
1,238
|
Net
income
|
$
|
782
|
$
|
433
|
$
|
902
|
$
|
2,604
|
$
|
3,504
|
(1)
|
Refer to Non-GAAP
Measures for the reconciliation of reported and adjusted
results.
|
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $778 million, compared to $898 million. Adjusted net income was
$782 million, a decrease of
$120 million or 13%. The decline was
due primarily to higher provision for credit losses on performing
loans, lower net interest income and non-interest income, partly
offset by lower non-interest expenses.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders increased $349 million
or 81%. The increase was due primarily to a lower provision for
credit losses on performing loans, higher net interest income, and
higher non-interest income, partly offset by higher non-interest
expenses.
Total revenue
Q4 2020 vs Q4
2019
Revenues were $2,566
million, down $117 million or
4%. The decrease was due primarily to lower net interest income
from margin compression, and lower non-interest income.
Q4 2020 vs Q3 2020
Revenues increased
$66 million or 3%, due primarily to
higher non-interest income and net interest income.
Net interest income
Q4 2020 vs Q4
2019
Net interest income of $1,954 million decreased $73 million or 4%, due primarily to margin
compression, partly offset by solid volume growth. The net interest
margin declined 15 basis points to 2.26%, primarily driven by the
interest rate cuts by the Bank of Canada, and changes to business mix.
Q4 2020 vs Q3 2020
Net interest income
increased $24 million or 1%, due
primarily to mortgage and deposit growth. The margin of 2.26%
remained stable.
Non-interest income
Q4 2020 vs Q4
2019
Non-interest income of $612
million decreased $44 million
or 7%. The decline was due primarily to lower banking fees mainly
as a result of a decline in economic activity and transaction
volumes, foreign exchange, and insurance fees.
Q4 2020 vs Q3 2020
Non-interest income
increased $42 million or 7% due
primarily to higher banking fees, insurance revenue, and income
from associated corporations.
Provision for credit losses
Q4 2020 vs Q4
2019
The provision for credit losses was $330 million, compared to $247 million, up $83
million or 34%. The provision for credit losses ratio
increased nine basis points to 37 basis points.
Provision on impaired loans was $238
million compared to $255
million, down $17 million or
7% due primarily to lower retail provisions partially offset by
higher commercial provisions mainly related to one account. The
provision for credit losses ratio on impaired loans was 27 basis
points, a decrease of two basis points.
Provision on performing loans was $92
million, compared to a net reversal of $8 million, an increase of $100 million of which $55
million related to commercial and $45
million related to retail. This is due primarily to the
unfavourable macroeconomic outlook driven by the COVID-19 pandemic
and its estimated future impact on credit migration.
Q4 2020 vs Q3 2020
The provision for credit
losses was $330 million, compared to
$752 million, down $422 million or 56%. The provision for credit
losses ratio decreased 48 basis points to 37 basis points.
Provision on impaired loans was $238
million compared to $317
million, down $79 million or
25% due to lower retail and commercial banking provisions. The
provision for credit losses ratio on impaired loans was 27 basis
points, a decrease of nine basis points.
Provision on performing loans was $92
million, compared to $435
million, a decrease of $343
million. Retail provision decreased by $249 million while commercial provisions
decreased $94 million. The decrease
was driven primarily by stabilizing portfolio credit quality and
improving macroeconomic outlook.
Non-interest expenses
Q4 2020 vs Q4
2019
Non-interest expenses were $1,186 million, down $34
million or 3%, driven mainly by lower advertising and
business travel costs, and the impact of cost control initiatives,
partially offset by higher personnel costs to support business
development.
Q4 2020 vs Q3 2020
Non-interest expenses were
up $14 million or 1%, largely due to
higher technology costs to support business development.
Provision for income taxes
The effective tax rate of
26.0% compared to 26.2% in the prior year and 25.5% in the prior
quarter.
Average Assets
Q4 2020 vs Q4
2019
Average assets grew $14
billion or 4% to $363 billion.
The growth included $13 billion or 6%
in residential mortgages and $3
billion or 6% in business loans and acceptances, offset
partially by reductions in personal loans and credit cards.
Q4 2020 vs Q3 2020
Average assets of
$363 billion were up $4 billion. The growth included $5 billion or 2% in residential mortgages
partially offset by a decline of $1
billion or 2% in business loans and acceptances.
Average Liabilities
Q4 2020 vs Q4
2019
Average liabilities increased $32 billion or 12%, including growth of
$18 billion or 11% in personal
deposits and $13 billion or 16% in
non-personal deposits.
Q4 2020 vs Q3 2020
Average liabilities
increased $12 billion or 4%,
including growth of $4 billion or 2%
in personal deposits and $8 billion
or 9% in non-personal deposits.
International
Banking
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020(2)
|
|
July 31
2020(2)
|
|
October 31
2019(3)
|
|
October
31
2020(2)
|
|
October 31
2019(3)
|
(Taxable
equivalent basis)(1)
|
|
|
|
|
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,785
|
$
|
1,906
|
$
|
2,093
|
$
|
7,603
|
$
|
8,353
|
Non-interest
income(4)(5)
|
|
763
|
|
664
|
|
1,093
|
|
3,207
|
|
4,366
|
Total
revenue
|
|
2,548
|
|
2,570
|
|
3,186
|
|
10,810
|
|
12,719
|
Provision for credit
losses(6)
|
|
736
|
|
1,278
|
|
502
|
|
3,613
|
|
2,076
|
Non-interest
expenses
|
|
1,424
|
|
1,390
|
|
1,688
|
|
5,943
|
|
6,596
|
Income tax
expense
|
|
55
|
|
(70)
|
|
231
|
|
182
|
|
909
|
Net
income
|
$
|
333
|
$
|
(28)
|
$
|
765
|
$
|
1,072
|
$
|
3,138
|
Net income
attributable to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
70
|
|
(54)
|
|
86
|
|
92
|
|
373
|
Net income
attributable to equity holders of the Bank
|
$
|
263
|
$
|
26
|
$
|
679
|
$
|
980
|
$
|
2,765
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
Return on
equity(7)
|
|
5.6%
|
|
0.4%
|
|
13.0%
|
|
5.0%
|
|
13.2%
|
Average assets ($
billions)
|
$
|
202
|
$
|
216
|
$
|
205
|
$
|
206
|
$
|
201
|
Average liabilities
($ billions)
|
$
|
153
|
$
|
162
|
$
|
156
|
$
|
155
|
$
|
153
|
(1)
|
Results are
presented on a taxable equivalent basis. Refer to Business Line
Overview section of the Bank's 2020 Annual Report to
Shareholders.
|
(2)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior year amounts have not been
restated.
|
(3)
|
The amounts for
the periods ended October 31, 2019 have been restated to reflect
the impact of the establishment of Global Wealth Management as a
separate business segment.
|
(4)
|
Includes net
income from investments in associated corporations for the three
months ended October 31, 2020 - $38 (July 31, 2020 - $47; October
31, 2019 - $207) and for the year ended October 31, 2020 - $243
(October 31, 2019 - $753).
|
(5)
|
Includes one
additional month of earnings relating to Mexico of $51 (after tax
and NCI $37) in the first quarter of 2019. Includes one additional
month of earnings relating to Peru of $57 (after tax and NCI $40)
in the first quarter of 2019.
|
(6)
|
Includes Day 1
provision for credit losses on acquired performing loans for the
year ended October 31, 2019 - $151.
|
(7)
|
Adjusting for
Acquisition-related costs, return on equity was 6.0% for the three
months ended October 31, 2020 and 5.8% for the year ended October
31, 2020. Adjusting for Acquisition-related costs, return on equity
was 14.0% for the three months ended October 31, 2019 and 14.1% for
the year ended October 31, 2019.
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
|
|
July 31
2020
|
|
October 31
2019
|
|
October
31
2020
|
|
October 31
2019
|
(Taxable
equivalent basis)
|
|
|
|
|
|
Adjusted
Results(1)
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,785
|
$
|
1,906
|
$
|
2,093
|
$
|
7,603
|
$
|
8,353
|
Non-interest
income
|
|
763
|
|
664
|
|
1,093
|
|
3,207
|
|
4,366
|
Total
revenue
|
|
2,548
|
|
2,570
|
|
3,186
|
|
10,810
|
|
12,719
|
Provision for credit
losses
|
|
736
|
|
1,278
|
|
502
|
|
3,536
|
|
1,925
|
Non-interest
expenses
|
|
1,397
|
|
1,344
|
|
1,606
|
|
5,742
|
|
6,390
|
Income tax
expense
|
|
62
|
|
(56)
|
|
255
|
|
260
|
|
1,012
|
Net
income
|
$
|
353
|
$
|
4
|
$
|
823
|
$
|
1,272
|
$
|
3,392
|
Net income
attributable to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
70
|
|
(49)
|
|
98
|
|
124
|
|
439
|
Net income
attributable to equity holders of the Bank
|
$
|
283
|
$
|
53
|
$
|
725
|
$
|
1,148
|
$
|
2,953
|
(1)
|
Refer to Non-GAAP
Measures for the reconciliation of reported and adjusted
results.
|
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $263 million, a decrease of $416 million or 61%. Adjusted net income
attributable to equity holders was $283
million, a decrease of $442
million or 61%. The decline was due largely to higher
provision for credit losses on performing loans and the impact of
divested operations. The remaining decrease was due to lower net
interest income and non-interest income, partially offset by lower
non-interest expenses and provision for income taxes.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders increased by $237
million. Adjusted net income attributable to equity holders
increased $230 million. The increase
was due largely to a reduction in provision for credit losses on
performing loans and higher non-interest income partially offset by
lower net interest income, higher non-interest expenses and
provision for income taxes.
Reconciliation of International Banking's reported results
and constant dollar results
The discussion below on the results of operations is on a
constant dollar basis that excludes the impact of foreign currency
translation, and is a non-GAAP financial measure (refer to Non-GAAP
Measures). The Bank believes that reporting in constant dollars is
useful for readers in assessing ongoing business performance.
Ratios are on a reported basis.
|
|
For the three months
ended
|
For the year
ended
|
($
millions)
|
July 31,
2020
|
|
October 31,
2019
|
October 31,
2019
|
(Taxable
equivalent basis)
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
|
Reported
|
Foreign
exchange
|
Constant
dollar
|
Net interest
income
|
$
|
1,906
|
$
|
57
|
$
|
1,849
|
|
$
|
2,093
|
$
|
142
|
$
|
1,951
|
|
$
|
8,353
|
$
|
500
|
$
|
7,853
|
Non-interest
income
|
|
664
|
|
14
|
|
650
|
|
|
1,093
|
|
45
|
|
1,048
|
|
|
4,366
|
|
148
|
|
4,218
|
Total
revenue
|
|
2,570
|
|
71
|
|
2,499
|
|
|
3,186
|
|
187
|
|
2,999
|
|
|
12,719
|
|
648
|
|
12,071
|
Provision for credit
losses
|
|
1,278
|
|
37
|
|
1,241
|
|
|
502
|
|
37
|
|
465
|
|
|
2,076
|
|
142
|
|
1,934
|
Non-interest
expenses
|
|
1,390
|
|
33
|
|
1,357
|
|
|
1,688
|
|
111
|
|
1,577
|
|
|
6,596
|
|
389
|
|
6,207
|
Income tax
expense
|
|
(70)
|
|
(1)
|
|
(69)
|
|
|
231
|
|
9
|
|
222
|
|
|
909
|
|
21
|
|
888
|
Net
income
|
$
|
(28)
|
$
|
2
|
$
|
(30)
|
|
$
|
765
|
$
|
30
|
$
|
735
|
|
$
|
3,138
|
$
|
96
|
$
|
3,042
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interest
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in
subsidiaries
|
$
|
(54)
|
$
|
(3)
|
$
|
(51)
|
|
$
|
86
|
$
|
6
|
$
|
80
|
|
$
|
373
|
$
|
35
|
$
|
338
|
Net income
attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity holders of the
Bank
|
$
|
26
|
$
|
5
|
$
|
21
|
|
$
|
679
|
$
|
24
|
$
|
655
|
|
$
|
2,765
|
$
|
61
|
$
|
2,704
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
216
|
$
|
6
|
$
|
210
|
|
$
|
205
|
$
|
10
|
$
|
195
|
|
$
|
201
|
$
|
10
|
$
|
191
|
Average liabilities
($ billions)
|
$
|
162
|
$
|
4
|
$
|
158
|
|
$
|
156
|
$
|
9
|
$
|
147
|
|
$
|
153
|
$
|
9
|
$
|
144
|
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $263 million, a decrease of $392 million or 60%. Adjusted net income
attributable to equity holders was $283
million, a decrease of $416
million or 60%. The decline was due largely to higher
provision for credit losses on performing loans and the impact of
divested operations. The remaining decrease was due to lower net
interest income and non-interest income, partially offset by lower
non-interest expenses and provision for income taxes.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders increased by $242
million. Adjusted net income attributable to equity holders
increased $236 million. The increase
was due largely to a reduction in provision for credit losses on
performing loans and higher non-interest income partially offset by
lower net interest income, higher non-interest expenses and
provision for income taxes.
Total revenue
Q4 2020 vs Q4
2019
Total revenues were $2,548
million, down 15%. The impact of divested operations
was 9%. The remaining 6% decline was due to lower net
interest income driven by margin compression, and lower
non-interest income driven primarily by lower banking and card fees
due to the slowdown in consumer activity.
Q4 2020 vs Q3 2020
Total revenues increased
$49 million or 2% due to higher
non-interest income driven by higher investment gains, partially
offset by lower net interest income driven by decline in total
loans.
Net interest income
Q4 2020 vs Q4 2019
Net interest income was
$1,785 million, down 9%. The
impact of divested operations was 5%. The remaining 4%
decline was due to margin compression. Margin reduced 54
basis points, due primarily to growth in lower-margin high quality
liquid assets, business mix changes and the impact of central bank
rate reductions across the footprint.
Q4 2020 vs Q3 2020
Net interest income
decreased $64 million or 3%, driven
by 4% decline in total loans, primarily in Latin America, as net interest margin remained
stable.
Non-interest income
Q4 2020 vs Q4
2019
Non-interest income was $763
million, down 27%. The impact of divested operations was
16%. The remaining decline of 11% was driven primarily by lower
banking and card fees due to the slowdown in consumer activity,
lower contribution from associated corporations, partially offset
by higher investment gains and trading revenues.
Q4 2020 vs Q3 2020
Non-interest income
increased $113 million or 17% due
mainly to higher investment gains in Peru and Mexico, and banking and card fees.
Provision for credit losses
Q4 2020 vs Q4
2019
The provision for credit losses was $736 million, compared to $465 million, up $271
million or 58%. The provision for credit losses ratio
increased 72 basis points to 207 basis points.
Provision on impaired loans was $561
million compared to $441
million, up $120 million or
27% due primarily to higher commercial and retail provisions in
most Pacific Alliance countries. The provision for credit losses
ratio on impaired loans was 158 basis points, an increase of 31
basis points.
Provision on performing loans was $175
million, compared to $24
million, up $151 million of
which $121 million related to retail
and $30 million related to
commercial. This is due primarily to the unfavourable
macroeconomic outlook driven by the COVID-19 pandemic and its
estimated future impact on credit migration.
Q4 2020 vs Q3 2020
The provision for credit
losses was $736 million, compared to
$1,241 million, down $505 million or 41%. The provision for credit
losses ratio decreased 126 basis points to 207 basis points.
Provision on impaired loans was $561
million compared to $558
million, up 1% due to lower retail provisions in select
Pacific Alliance countries partially offset by higher commercial
provisions. The provision for credit losses ratio on impaired loans
increased 9 basis points to 158 basis points.
Provision on performing loans was $175
million, compared to $683
million, a decrease of $509
million of which $483 million
related to retail and $26 million
related to commercial. The decrease was driven primarily by
stabilizing portfolio credit quality and improving macroeconomic
outlook.
Non-interest expenses
Q4 2020 vs Q4
2019
Non-interest expenses were $1,424 million, down 10%. On an adjusted
basis, non-interest expenses decreased 7%, of which 5% relates to
divested operations. The remaining decline of 2% was due to lower
personnel costs driven by synergies from acquisitions and other
cost-savings initiatives.
Q4 2020 vs Q3 2020
Non-interest expenses
increased 5%, including expenses associated with the implementation
of cost-savings initiatives, driven by staffing and branch
reductions mainly in Mexico,
Colombia, Caribbean and Central America.
Provision for income taxes
Q4 2020 vs Q4
2019
The effective tax rate for the quarter was 14.2%.
On an adjusted basis, the effective tax rate for the quarter was
15.0%, as compared to 23.7% last year, due primarily to higher
provision for credit losses in entities that operate in higher tax
rate jurisdictions.
Q4 2020 vs Q3 2020
The effective tax rate for
the quarter was 14.2%. On an adjusted basis, the effective tax rate
for the quarter was 15.0%, as compared to a recovery rate of 106.8%
in the prior quarter. This change in effective tax rate is due
primarily to significantly higher provision for credit losses
recorded in entities that operate in higher tax rate jurisdictions
in the prior quarter.
Average Assets
Q4 2020 vs Q4
2019
Average assets of $202
billion increased $7 billion
or 4%. Total loan growth of 1% was driven by strong growth of 8% in
commercial loans offset by a decline in retail loans of 6%. The
remaining increase was driven by higher deposits with central banks
and investment securities.
Q4 2020 vs Q3 2020
Average assets decreased
$8 billion or 4%. Total loans
declined 4% driven by a decline of 7% in commercial loans and 1% in
retail loans.
Average Liabilities
Q4 2020 vs Q4
2019
Average liabilities of $153
billion increased $6 billion
or 4% driven by higher funding from central banks. Total deposits
declined 2% driven by a decline of 6% in retail deposits, partially
offset by 1% growth in non-personal deposits. The negative impact
of divested operations on total deposit growth was 9%, non-personal
deposit growth 4% and retail deposit growth 16%.
Q4 2020 vs Q3 2020
Average liabilities
decreased $5 billion or 3% driven by
a decline in total deposits of 3%, primarily in the Pacific
Alliance. Non-personal deposits declined 5%, while retail deposit
growth was 2%.
Global Wealth
Management
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31 2020(2)
|
|
July 31
2020(2)
|
|
October 31
2019
|
|
October
31
2020(2)
|
|
October 31
2019
|
(Taxable
equivalent basis)(1)
|
|
|
|
|
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
144
|
$
|
145
|
$
|
142
|
$
|
575
|
$
|
564
|
Non-interest
income
|
|
1,021
|
|
990
|
|
1,007
|
|
4,009
|
|
3,937
|
Total
revenue
|
|
1,165
|
|
1,135
|
|
1,149
|
|
4,584
|
|
4,501
|
Provision for credit
losses
|
|
3
|
|
1
|
|
-
|
|
7
|
|
-
|
Non-interest
expenses
|
|
726
|
|
700
|
|
744
|
|
2,878
|
|
2,905
|
Income tax
expense
|
|
111
|
|
110
|
|
102
|
|
437
|
|
412
|
Net
income
|
$
|
325
|
$
|
324
|
$
|
303
|
$
|
1,262
|
$
|
1,184
|
Net income
attributable to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
2
|
|
3
|
|
4
|
|
10
|
|
18
|
Net income
attributable to equity holders of the Bank
|
$
|
323
|
$
|
321
|
$
|
299
|
$
|
1,252
|
$
|
1,166
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
Assets under
administration ($ billions)
|
$
|
502
|
$
|
503
|
$
|
497
|
$
|
502
|
$
|
497
|
Assets under
management ($ billions)
|
$
|
292
|
$
|
293
|
$
|
302
|
$
|
292
|
$
|
302
|
(1)
|
Results are
presented on a taxable equivalent basis. Refer to Business Line
Overview section of the Bank's 2020 Annual Report to
Shareholders.
|
(2)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior year amounts have not been
restated.
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
|
|
July 31
2020
|
|
October 31
2019
|
|
October
31
2020
|
|
October 31
2019
|
(Taxable
equivalent basis)
|
|
|
|
|
|
Adjusted
Results(1)
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
144
|
$
|
145
|
$
|
142
|
$
|
575
|
$
|
564
|
Non-interest
income
|
|
1,021
|
|
990
|
|
1,007
|
|
4,009
|
|
3,937
|
Total
revenue
|
|
1,165
|
|
1,135
|
|
1,149
|
|
4,584
|
|
4,501
|
Provision for credit
losses
|
|
3
|
|
1
|
|
-
|
|
6
|
|
-
|
Non-interest
expenses
|
|
713
|
|
685
|
|
725
|
|
2,818
|
|
2,839
|
Income tax
expense
|
|
114
|
|
114
|
|
106
|
|
453
|
|
429
|
Net
income
|
$
|
335
|
$
|
335
|
$
|
318
|
$
|
1,307
|
$
|
1,233
|
Net income
attributable to non-controlling interests in
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries
|
|
2
|
|
3
|
|
4
|
|
10
|
|
18
|
Net income
attributable to equity holders of the Bank
|
$
|
333
|
$
|
332
|
$
|
314
|
$
|
1,297
|
$
|
1,215
|
(1)
|
Refer to Non-GAAP
Measures for the reconciliation of reported and adjusted
results.
|
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $323 million, an increase of $24 million or 8%. Adjusted net income increased
to $333 million, up 6%. This
growth is due primarily to higher net sales, trading volumes and
market appreciation.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders increased $2 million
or 1%. Adjusted net income increased $1 million due to higher fee-based revenue,
partially offset by higher non-interest expenses.
Total revenue
Q4 2020 vs Q4
2019
Revenues were $1,165
million, up $16 million or 1%.
The negative impact of divested operations was 3%, offset by growth
of 4% due primarily to higher brokerage fees partially offset by
the slowdown in consumer activity within our International
operations.
Q4 2020 vs Q3 2020
Revenues rose $30 million or 3%, due primarily to higher mutual
fund and investment management fees.
Provision for credit losses
Q4 2020 vs Q4
2019
The provision for credit losses was $3 million compared to nil. The provision for
credit losses ratio was seven basis points.
Q4 2020 vs Q3 2020
The provision for credit
losses increased $2 million. The
provision for credit losses ratio was seven basis points.
Non-interest expenses
Q4 2020 vs Q4
2019
Non-interest expenses of $726 million were down $18
million or 2%, as the benefit from prior period divested
operations and lower communications, travel, and business
development expenses were partly offset by higher volume-related
expenses and technology costs to support business development.
Q4 2020 vs Q3 2020
Non-interest expenses were
up $26 million or 4%, largely due to
higher volume-related expenses and technology costs to support
business development.
Provision for income taxes
The effective tax rate was
25.6% compared to 24.9% in the prior year and slightly higher than
25.4% in the prior quarter.
Assets under administration (AUA) and assets under management
(AUM)
Q4 2020 vs Q4 2019
Assets under
management of $292 billion declined
$10 billion or 3%, while assets under
administration of $502 billion
increased $5 billion or 1%. The
negative impact of divested operations was 5% on AUM and 3% on AUA.
The remaining growth in AUM and AUA was due primarily to higher net
sales and market appreciation.
Q4 2020 vs Q3 2020
Assets under management
decreased $1 billion or 1%, and
assets under administration decreased $1
billion as higher net sales were more than offset by market
depreciation.
Global Banking and
Markets
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020(2)
|
|
July 31
2020(2)
|
|
October 31
2019
|
|
October
31
2020(2)
|
|
October 31
2019
|
(Taxable
equivalent basis)(1)
|
|
|
|
|
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
350
|
$
|
375
|
$
|
337
|
$
|
1,435
|
$
|
1,396
|
Non-interest
income
|
|
860
|
|
1,170
|
|
833
|
|
3,947
|
|
3,084
|
Total
revenue
|
|
1,210
|
|
1,545
|
|
1,170
|
|
5,382
|
|
4,480
|
Provision for credit
losses
|
|
62
|
|
149
|
|
4
|
|
390
|
|
(22)
|
Non-interest
expenses
|
|
583
|
|
620
|
|
631
|
|
2,473
|
|
2,463
|
Income tax
expense
|
|
105
|
|
176
|
|
130
|
|
564
|
|
505
|
Net
income
|
$
|
460
|
$
|
600
|
$
|
405
|
$
|
1,955
|
$
|
1,534
|
Net income
attributable to equity holders of the Bank
|
$
|
460
|
$
|
600
|
$
|
405
|
$
|
1,955
|
$
|
1,534
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
Return on
equity
|
|
14.6%
|
|
17.5%
|
|
13.8%
|
|
14.8%
|
|
13.3%
|
Average assets ($
billions)
|
$
|
389
|
$
|
416
|
$
|
388
|
$
|
412
|
$
|
372
|
Average liabilities
($ billions)
|
$
|
387
|
$
|
414
|
$
|
318
|
$
|
379
|
$
|
304
|
(1)
|
Results are
presented on a taxable equivalent basis. Refer to Business Line
Overview section of the Bank's 2020 Annual Report to
Shareholders.
|
(2)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior year amounts have not been
restated.
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
|
|
July 31
2020
|
|
October
31
2019
|
|
October
31
|
|
October
31
|
(Taxable
equivalent basis)
|
|
|
|
|
2020
|
|
2019
|
Adjusted
Results(1)
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
350
|
$
|
375
|
$
|
337
|
$
|
1,435
|
$
|
1,396
|
Non-interest
income
|
|
860
|
|
1,170
|
|
833
|
|
4,049
|
|
3,084
|
Total
revenue
|
|
1,210
|
|
1,545
|
|
1,170
|
|
5,484
|
|
4,480
|
Provision for credit
losses
|
|
62
|
|
149
|
|
4
|
|
384
|
|
(22)
|
Non-interest
expenses
|
|
583
|
|
620
|
|
631
|
|
2,473
|
|
2,463
|
Income tax
expense
|
|
105
|
|
176
|
|
130
|
|
593
|
|
505
|
Net
income
|
$
|
460
|
$
|
600
|
$
|
405
|
$
|
2,034
|
$
|
1,534
|
(1)
|
Refer to Non-GAAP
Measures for the reconciliation of reported and adjusted
results.
|
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $460 million, an increase of $55 million or 14%. Higher net interest income,
non-interest income, and lower non-interest expenses, were partly
offset by higher provision for credit losses.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders decreased by $140
million or 23%. This was due mainly to lower net interest
income, non-interest income, and the negative impact of foreign
currency translation, partly offset by lower provision for credit
losses and lower non-interest expenses.
Total revenue
Q4 2020 vs Q4
2019
Revenues were $1,210
million, an increase of $40
million or 3% due primarily to higher non-interest income
driven by fixed income trading revenues and higher net interest
income.
Q4 2020 vs Q3 2020
Revenues decreased by
$335 million or 22% due to lower net
interest income and lower trading revenues and unfavourable impact
of foreign currency translation.
Net interest income
Q4 2020 vs Q4
2019
Net interest income was $350
million, an increase of $13
million or 4%. The increase was due mainly to strong growth
in deposits and loan volumes mainly in Canada and the U.S., partly offset by lower
lending margins.
Q4 2020 vs Q3 2020
Net interest income
decreased by $25 million or 7%.
The decrease was due to lower loan volumes in all regions, partly
offset by higher lending margins.
Non-interest income
Q4 2020 vs Q4
2019
Non-interest income was $860
million, an increase of $27
million or 3% from the prior year. This increase was
due mainly to growth in fixed income trading revenues.
Q4 2020 vs Q3 2020
Non-interest income
decreased by $310 million or 26%
primarily due to a decrease in fixed income trading revenues, lower
underwriting fees, and the negative impact of foreign currency
translation.
Provision for credit losses
Q4 2020 vs Q4
2019
The provision for credit losses was $62 million, compared to $4 million, an increase of $58 million. The provision for credit losses
ratio increased to 24 basis points.
Provision on impaired loans was $34
million, up $22 million due to
higher provisions primarily in the energy sector. The provision for
credit losses ratio on impaired loans increased to 13 basis
points.
Provision on performing loans was $28
million, compared to a net reversal of $8 million, an increase of $36 million due primarily to unfavourable
economic conditions in the energy sector and unfavourable
macroeconomic outlook and its estimated future impact on credit
migration on other sectors most impacted by COVID-19.
Q4 2020 vs Q3 2020
The provision for credit
losses was $62 million, compared to
$149 million last quarter, a decrease
of $87 million driven primarily by
lower performing provision due to improving macroeconomic outlook,
and stabilizing portfolio quality. The provision for credit losses
ratio decreased 26 basis points to 24 basis points.
Provision on impaired loans was $34
million, compared to $38
million, down by $4 million.
The provision for credit losses ratio on impaired loans remain
unchanged at 13 basis points.
Provision on performing loans was $28
million, a decrease of $83
million. The decrease was driven primarily by an improving
macroeconomic outlook, and stabilizing portfolio quality.
Non-interest expenses
Q4 2020 vs Q4
2019
Non-interest expenses of $583 million, decreased $48 million or 8%. The decrease was
primarily driven by lower personnel costs, professional fees,
advertisement and business development expenses.
Q4 2020 vs Q3 2020
Non-interest expenses
decreased $37 million or 6% due
mainly to lower personnel costs and the positive impact of foreign
currency translation.
Provision for income taxes
Q4 2020 vs Q4
2019
The effective tax rate for the quarter was 18.5%,
compared to 24.3%. The changes were due mainly to the change in
earnings mix across jurisdictions.
Q4 2020 vs Q3 2020
The effective tax rate for
the quarter was 18.5%, compared to 22.7% in the prior quarter. The
change was due mainly to changes in the earnings mix across
jurisdictions.
Average Assets
Q4 2020 vs Q4
2019
Average assets were $389
billion, in line with the prior year. Growth in loans and
derivative-related assets were offset by a decrease in securities
purchased under resale agreements.
Q4 2020 vs Q3 2020
Average assets decreased
$27 billion or 7% due mainly to
decreases in loans, securities purchased under resale agreements,
derivative-related assets, and the impact of foreign currency
translation.
Average Liabilities
Q4 2020 vs Q4
2019
Average liabilities of $387
billion were higher by $69
billion or 22%, due to strong growth in deposits of 37%, as
well as growth in securities sold under repurchase agreements, and
derivative-related liabilities.
Q4 2020 vs Q3 2020
Average liabilities
decreased $27 billion or 7% due
primarily to lower securities sold under repurchase agreements and
the impact of foreign currency translation.
Other
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020(2)
|
|
July 31
2020(2)
|
|
October 31
2019(3)
|
|
October
31
2020(2)
|
|
October 31
2019(3)
|
(Taxable
equivalent basis)(1)
|
|
|
|
|
|
Reported
Results
|
|
|
|
|
|
|
|
|
|
|
Net interest
income(4)
|
$
|
25
|
$
|
(103)
|
$
|
(263)
|
$
|
(131)
|
$
|
(984)
|
Non-interest
income(4)(5)
|
|
(9)
|
|
87
|
|
43
|
|
392
|
|
(146)
|
Total
revenue
|
|
16
|
|
(16)
|
|
(220)
|
|
261
|
|
(1,130)
|
Provision for credit
losses
|
|
-
|
|
1
|
|
-
|
|
1
|
|
1
|
Non-interest
expenses
|
|
138
|
|
136
|
|
28
|
|
751
|
|
1
|
Income tax
expense
|
|
(125)
|
|
(132)
|
|
(185)
|
|
(519)
|
|
(586)
|
Net income
(loss)
|
$
|
3
|
$
|
(21)
|
$
|
(63)
|
$
|
28
|
$
|
(546)
|
Net income (loss)
attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
in
subsidiaries
|
|
-
|
|
-
|
|
17
|
|
(27)
|
|
17
|
Net income (loss)
attributable to equity holders of the Bank
|
$
|
3
|
$
|
(21)
|
$
|
(80)
|
$
|
55
|
$
|
(563)
|
Other
measures
|
|
|
|
|
|
|
|
|
|
|
Average assets ($
billions)
|
$
|
159
|
$
|
190
|
$
|
124
|
$
|
158
|
$
|
118
|
Average liabilities
($ billions)
|
$
|
195
|
$
|
237
|
$
|
251
|
$
|
240
|
$
|
243
|
(1)
|
Results are
presented on a taxable equivalent basis. Refer to Business Line
Overview section of the Bank's 2020 Annual Report to
Shareholders.
|
(2)
|
The amounts for
periods ended July 31, 2020 and October 31, 2020 have been prepared
in accordance with IFRS 16, prior period amounts have not been
restated.
|
(3)
|
The amounts for
the periods ended October 31, 2019 have been restated to reflect
the impact of the establishment of Global Wealth Management as a
separate business segment.
|
(4)
|
Includes the
elimination of the tax-exempt income gross-up reported in net
interest income, non-interest income and provision for income taxes
for the three months ended October 31, 2020 – $67 (July 31, 2020 –
$65; October 31, 2019 – $58) and the year ended October 31, 2020 -
$275 (October 31, 2019 - $181) to arrive at the amounts reported in
the Consolidated Statement of Income.
|
(5)
|
Income (on a
taxable equivalent basis) from investments in associated
corporations and the provision for income taxes in each period
include the tax normalization adjustments related to the gross-up
of income from associated companies for the three months ended
October 31, 2020 – $(7) (July 31, 2020 – $(17); October 31, 2019 –
$(67)) and for the year October 31, 2020 - $(70) (October 31, 2019
– $(178)).
|
|
For the three months ended
|
For the year
ended
|
(Unaudited)($
millions)
|
|
October
31
2020
|
|
July 31
2020
|
|
October 31
2019
|
|
October
31
|
|
October
31
|
(Taxable
equivalent basis)
|
|
|
|
|
2020
|
|
2019
|
Adjusted
Results(1)
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
25
|
$
|
(103)
|
$
|
(263)
|
$
|
(131)
|
$
|
(984)
|
Non-interest
income
|
|
(9)
|
|
42
|
|
37
|
|
93
|
|
(19)
|
Total
revenue
|
|
16
|
|
(61)
|
|
(226)
|
|
(38)
|
|
(1,003)
|
Provision for credit
losses
|
|
-
|
|
1
|
|
-
|
|
1
|
|
1
|
Non-interest
expenses
|
|
130
|
|
135
|
|
21
|
|
692
|
|
(20)
|
Income tax
expense
|
|
(122)
|
|
(133)
|
|
(199)
|
|
(475)
|
|
(730)
|
Net income
(loss)
|
$
|
8
|
$
|
(64)
|
$
|
(48)
|
$
|
(256)
|
$
|
(254)
|
Net income (loss)
attributable to non-controlling interests
|
|
|
|
|
|
|
|
|
|
|
|
in
subsidiaries
|
|
-
|
|
-
|
|
-
|
|
1
|
|
1
|
Net income
(loss) attributable to equity holders of the Bank
|
$
|
8
|
$
|
(64)
|
$
|
(48)
|
$
|
(257)
|
$
|
(255)
|
(1)
|
Refer to Non-GAAP
Measures for the reconciliation of reported and adjusted
results.
|
|
The Other segment includes Group Treasury, smaller operating
segments, Net gain/loss on divestitures and other corporate items
which are not allocated to a business line.
Net income
Q4 2020 vs Q4 2019
Net
income attributable to equity holders was $3
million. Adjusted net income attributable to equity holders
was $8 million, compared to net loss
attributable to equity holders of $48
million. The improvement was due mainly to higher
contributions from asset/liability management activities, partly
offset by higher non-interest expenses.
Q4 2020 vs Q3 2020
Net income attributable to
equity holders was $3 million.
Adjusted net income attributable to equity holders was $8 million, compared to net loss attributable to
equity holders of $64 million. The
improvement was due mainly to higher contributions from
asset/liability management activities, partly offset by lower
investment gains.
Consolidated Statement of Financial Position
|
|
As at
|
(Unaudited) ($
millions)
|
|
October
31
|
|
July 31
|
|
October 31
|
|
2020
|
|
2020
|
|
2019
|
Assets
|
|
|
|
|
|
|
Cash and deposits
with financial institutions
|
$
|
76,460
|
$
|
59,041
|
$
|
46,720
|
Precious
metals
|
|
1,181
|
|
2,743
|
|
3,709
|
Trading
assets
|
|
|
|
|
|
|
Securities
|
|
108,331
|
|
111,855
|
|
112,664
|
Loans
|
|
8,352
|
|
10,864
|
|
13,829
|
Other
|
|
1,156
|
|
1,035
|
|
995
|
|
|
|
117,839
|
|
123,754
|
|
127,488
|
Securities purchased
under resale agreements and securities borrowed
|
|
119,747
|
|
126,460
|
|
131,178
|
Derivative financial
instruments
|
|
45,065
|
|
55,632
|
|
38,119
|
Investment
securities
|
|
111,389
|
|
122,565
|
|
82,359
|
Loans
|
|
|
|
|
|
|
Residential
mortgages
|
|
284,684
|
|
277,522
|
|
268,169
|
Personal
loans
|
|
93,758
|
|
94,286
|
|
98,631
|
Credit
cards
|
|
14,797
|
|
15,350
|
|
17,788
|
Business and
government
|
|
217,663
|
|
233,414
|
|
212,972
|
|
|
|
610,902
|
|
620,572
|
|
597,560
|
Allowance for credit
losses
|
|
7,639
|
|
7,221
|
|
5,077
|
|
|
|
603,263
|
|
613,351
|
|
592,483
|
Other
|
|
|
|
|
|
|
Customers' liability
under acceptances, net of allowance
|
|
14,228
|
|
15,963
|
|
13,896
|
Property and
equipment(1)
|
|
5,897
|
|
6,025
|
|
2,669
|
Investments in
associates
|
|
2,475
|
|
2,399
|
|
5,614
|
Goodwill and other
intangible assets
|
|
17,015
|
|
17,136
|
|
17,465
|
Deferred tax
assets
|
|
2,185
|
|
2,164
|
|
1,570
|
Other
assets
|
|
19,722
|
|
22,639
|
|
22,891
|
|
|
|
61,522
|
|
66,326
|
|
64,105
|
Total
assets
|
$
|
1,136,466
|
$
|
1,169,872
|
$
|
1,086,161
|
Liabilities
|
|
|
|
|
|
|
Deposits
|
|
|
|
|
|
|
Personal
|
$
|
246,135
|
$
|
242,876
|
$
|
224,800
|
Business and
government
|
|
464,619
|
|
482,050
|
|
461,851
|
Financial
institutions
|
|
40,084
|
|
43,067
|
|
46,739
|
|
|
|
750,838
|
|
767,993
|
|
733,390
|
Financial instruments
designated at fair value through profit or loss
|
|
18,899
|
|
17,522
|
|
12,235
|
Other
|
|
|
|
|
|
|
Acceptances
|
|
14,305
|
|
16,071
|
|
13,901
|
Obligations related
to securities sold short
|
|
31,902
|
|
33,913
|
|
30,404
|
Derivative financial
instruments
|
|
42,247
|
|
54,698
|
|
40,222
|
Obligations related to securities sold under repurchase agreements and securities
lent
|
|
137,763
|
|
137,351
|
|
124,083
|
Subordinated
debentures
|
|
7,405
|
|
7,336
|
|
7,252
|
Other
liabilities(1)
|
|
62,604
|
|
64,413
|
|
54,482
|
|
|
|
296,226
|
|
313,782
|
|
270,344
|
Total
liabilities
|
|
1,065,963
|
|
1,099,297
|
|
1,015,969
|
Equity
|
|
|
|
|
|
|
Common
equity
|
|
|
|
|
|
|
Common
shares
|
|
18,239
|
|
18,236
|
|
18,264
|
Retained
earnings
|
|
46,345
|
|
45,689
|
|
44,439
|
Accumulated other
comprehensive income (loss)
|
|
(2,125)
|
|
(1,402)
|
|
570
|
Other
reserves
|
|
360
|
|
360
|
|
365
|
Total common
equity
|
|
62,819
|
|
62,883
|
|
63,638
|
Preferred shares and
other equity instruments
|
|
5,308
|
|
5,308
|
|
3,884
|
Total equity
attributable to equity holders of the Bank
|
|
68,127
|
|
68,191
|
|
67,522
|
Non-controlling
interests in subsidiaries
|
|
2,376
|
|
2,384
|
|
2,670
|
Total
equity
|
|
70,503
|
|
70,575
|
|
70,192
|
Total liabilities and
equity
|
$
|
1,136,466
|
$
|
1,169,872
|
$
|
1,086,161
|
(1)
|
The amounts for
the periods ended October 31, 2020 and July 31, 2020 have been
prepared in accordance with IFRS 16; prior year amounts have not
been restated (refer to Note 3 and 4 in the 2020 Annual Report to
Shareholders).
|
Consolidated Statement of Income
|
|
For the three months
ended
|
For the year ended
|
(Unaudited) ($
millions)
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Revenue
|
|
|
|
|
|
|
|
|
|
|
Interest
income(1)
|
Loans
|
$
|
6,104
|
$
|
6,420
|
$
|
7,371
|
$
|
26,977
|
$
|
29,116
|
Securities
|
|
458
|
|
460
|
|
562
|
|
2,035
|
|
2,238
|
Securities purchased under resale agreements and securities borrowed
|
|
51
|
|
57
|
|
106
|
|
286
|
|
502
|
Deposits with
financial institutions
|
|
39
|
|
49
|
|
213
|
|
414
|
|
928
|
|
|
|
6,652
|
|
6,986
|
|
8,252
|
|
29,712
|
|
32,784
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
2,055
|
|
2,425
|
|
3,477
|
|
10,731
|
|
13,871
|
Subordinated
debentures
|
|
50
|
|
53
|
|
83
|
|
240
|
|
294
|
Other(2)
|
|
289
|
|
255
|
|
356
|
|
1,421
|
|
1,442
|
|
|
|
2,394
|
|
2,733
|
|
3,916
|
|
12,392
|
|
15,607
|
Net interest
income
|
|
4,258
|
|
4,253
|
|
4,336
|
|
17,320
|
|
17,177
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Card
revenues
|
|
181
|
|
164
|
|
245
|
|
789
|
|
977
|
Banking services
fees
|
|
376
|
|
337
|
|
473
|
|
1,540
|
|
1,812
|
Credit
fees
|
|
345
|
|
333
|
|
345
|
|
1,348
|
|
1,316
|
Mutual
funds
|
|
506
|
|
486
|
|
476
|
|
1,945
|
|
1,849
|
Brokerage
fees
|
|
225
|
|
225
|
|
226
|
|
902
|
|
876
|
Investment management
and trust
|
|
238
|
|
225
|
|
263
|
|
946
|
|
1,050
|
Underwriting and
other advisory
|
|
152
|
|
202
|
|
146
|
|
690
|
|
497
|
Non-trading foreign
exchange
|
|
169
|
|
170
|
|
161
|
|
708
|
|
667
|
Trading
revenues
|
|
498
|
|
736
|
|
376
|
|
2,411
|
|
1,488
|
Net gain on sale of
investment securities
|
|
182
|
|
145
|
|
125
|
|
607
|
|
351
|
Net income from
investments in associated corporations
|
|
49
|
|
42
|
|
161
|
|
242
|
|
650
|
Insurance
underwriting income, net of claims
|
|
120
|
|
113
|
|
158
|
|
497
|
|
676
|
Other fees and
commissions
|
|
151
|
|
158
|
|
221
|
|
688
|
|
949
|
Other
|
|
55
|
|
145
|
|
256
|
|
703
|
|
699
|
|
|
|
3,247
|
|
3,481
|
|
3,632
|
|
14,016
|
|
13,857
|
Total
revenue
|
|
7,505
|
|
7,734
|
|
7,968
|
|
31,336
|
|
31,034
|
Provision for credit
losses
|
|
1,131
|
|
2,181
|
|
753
|
|
6,084
|
|
3,027
|
|
|
|
6,374
|
|
5,553
|
|
7,215
|
|
25,252
|
|
28,007
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
2,071
|
|
2,066
|
|
2,115
|
|
8,624
|
|
8,443
|
Premises and
technology(2)
|
|
607
|
|
601
|
|
712
|
|
2,408
|
|
2,807
|
Depreciation and
amortization(2)
|
|
407
|
|
377
|
|
271
|
|
1,546
|
|
1,053
|
Communications
|
|
93
|
|
105
|
|
118
|
|
418
|
|
459
|
Advertising and
business development
|
|
96
|
|
98
|
|
174
|
|
445
|
|
625
|
Professional
|
|
184
|
|
181
|
|
243
|
|
753
|
|
861
|
Business and capital
taxes
|
|
123
|
|
130
|
|
126
|
|
517
|
|
515
|
Other
|
|
476
|
|
460
|
|
552
|
|
2,145
|
|
1,974
|
|
|
|
4,057
|
|
4,018
|
|
4,311
|
|
16,856
|
|
16,737
|
Income before
taxes
|
|
2,317
|
|
1,535
|
|
2,904
|
|
8,396
|
|
11,270
|
Income tax
expense
|
|
418
|
|
231
|
|
596
|
|
1,543
|
|
2,472
|
Net
income
|
$
|
1,899
|
$
|
1,304
|
$
|
2,308
|
$
|
6,853
|
$
|
8,798
|
Net income
attributable to non-controlling interests in
subsidiaries
|
|
72
|
|
(51)
|
|
107
|
|
75
|
|
408
|
Net income
attributable to equity holders of the Bank
|
$
|
1,827
|
$
|
1,355
|
$
|
2,201
|
$
|
6,778
|
$
|
8,390
|
Preferred
shareholders and other equity instrument holders
|
|
82
|
|
23
|
|
64
|
|
196
|
|
182
|
Common
shareholders
|
$
|
1,745
|
$
|
1,332
|
$
|
2,137
|
$
|
6,582
|
$
|
8,208
|
Earnings per
common share (in dollars)
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.44
|
$
|
1.10
|
$
|
1.76
|
$
|
5.43
|
$
|
6.72
|
Diluted
|
|
1.42
|
|
1.04
|
|
1.73
|
|
5.30
|
|
6.68
|
Dividends paid per
common share (in dollars)
|
|
0.90
|
|
0.90
|
|
0.90
|
|
3.60
|
|
3.49
|
(1)
|
Includes interest
income on financial assets measured at amortized cost and FVOCI,
calculated using the effective interest method, of $6,510 for the
three months ended October 31, 2020 (July 31, 2020 - $6,839;
October 31, 2019 - $8,146) and for the year ended October 31, 2020
- $29,173 (October 31, 2019 - $32,436).
|
(2)
|
The amounts for
the periods ended October 31, 2020 and July 31, 2020 have been
prepared in accordance with IFRS 16; prior period amounts have not
been restated (refer to Notes 3 and 4 in the 2020 Annual Report to
Shareholders).
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Comprehensive Income
|
|
For the three months
ended
|
|
For the year ended
|
(Unaudited) ($
millions)
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
2020
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
Net
income
|
$
|
1,899
|
$
|
1,304
|
$
|
2,308
|
$
|
6,853
|
$
|
8,798
|
Other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
Items that will be
reclassified subsequently to net income
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized foreign currency translation gains (losses):
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
foreign currency translation gains (losses)
|
|
(548)
|
|
(1,411)
|
|
(966)
|
|
(2,433)
|
|
(626)
|
Net gains (losses) on
hedges of net investments in foreign operations
|
|
6
|
|
529
|
|
82
|
|
347
|
|
(232)
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net unrealized
foreign currency translation gains (losses)
|
|
16
|
|
(24)
|
|
19
|
|
62
|
|
21
|
Net gains (losses) on
hedges of net investments in foreign operations
|
|
1
|
|
139
|
|
22
|
|
91
|
|
(60)
|
|
|
(559)
|
|
(997)
|
|
(925)
|
|
(2,239)
|
|
(819)
|
Net change in fair
value due to change in debt instruments measured at fair
|
|
|
|
|
|
|
|
|
|
|
value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(235)
|
|
553
|
|
163
|
|
1,495
|
|
1,265
|
Reclassification of
net (gains) losses to net income
|
|
139
|
|
(195)
|
|
(217)
|
|
(1,091)
|
|
(1,150)
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(59)
|
|
152
|
|
28
|
|
387
|
|
308
|
Reclassification of
net (gains) losses to net income
|
|
37
|
|
(48)
|
|
(50)
|
|
(276)
|
|
(298)
|
|
|
(74)
|
|
254
|
|
(32)
|
|
293
|
|
105
|
Net change in gains (losses) on derivative instruments designated as
cash flow hedges:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivative instruments designated as cash flow hedges
|
|
(661)
|
|
1,362
|
|
618
|
|
2,543
|
|
361
|
Reclassification of
net (gains) losses to net income
|
|
385
|
|
(1,557)
|
|
(481)
|
|
(2,604)
|
|
596
|
Income tax expense
(benefit):
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) on
derivative instruments designated as cash flow hedges
|
|
(181)
|
|
386
|
|
155
|
|
689
|
|
86
|
Reclassification of
net (gains) losses to net income
|
|
106
|
|
(456)
|
|
(119)
|
|
(718)
|
|
163
|
|
|
(201)
|
|
(125)
|
|
101
|
|
(32)
|
|
708
|
Other comprehensive
income (loss) from investments in associates
|
|
7
|
|
10
|
|
21
|
|
(2)
|
|
103
|
Items that will
not be reclassified subsequently to net income
|
|
|
|
|
|
|
|
|
|
|
Net change in
remeasurement of employee benefit plan asset and
liability:
|
|
|
|
|
|
|
|
|
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
291
|
|
(504)
|
|
75
|
|
(620)
|
|
(1,096)
|
Income tax expense
(benefit)
|
|
76
|
|
(139)
|
|
22
|
|
(155)
|
|
(281)
|
|
|
215
|
|
(365)
|
|
53
|
|
(465)
|
|
(815)
|
Net change in fair
value due to change in equity instruments designated at
fair
|
|
|
|
|
|
|
|
|
|
|
value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
|
Net gains (losses) in
fair value
|
|
(44)
|
|
58
|
|
36
|
|
(122)
|
|
121
|
Income tax expense
(benefit)
|
|
(17)
|
|
18
|
|
6
|
|
(37)
|
|
26
|
|
|
(27)
|
|
40
|
|
30
|
|
(85)
|
|
95
|
Net change in fair
value due to change in own credit risk on financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
designated under the
fair value option:
|
|
|
|
|
|
|
|
|
|
|
Change in fair value
due to change in own credit risk on financial
liabilities
|
|
|
|
|
|
|
|
|
|
|
designated under the
fair value option
|
|
(211)
|
|
(585)
|
|
18
|
|
(404)
|
|
11
|
Income tax expense
(benefit)
|
|
(55)
|
|
(154)
|
|
5
|
|
(106)
|
|
3
|
|
|
(156)
|
|
(431)
|
|
13
|
|
(298)
|
|
8
|
Other comprehensive
income (loss) from investments in associates
|
|
-
|
|
-
|
|
(7)
|
|
(8)
|
|
(10)
|
Other comprehensive
income (loss)
|
|
(795)
|
|
(1,614)
|
|
(746)
|
|
(2,836)
|
|
(625)
|
Comprehensive
income (loss)
|
$
|
1,104
|
$
|
(310)
|
$
|
1,562
|
$
|
4,017
|
$
|
8,173
|
Comprehensive income
(loss) attributable to non-controlling interests
|
|
-
|
|
(45)
|
|
(22)
|
|
(93)
|
|
205
|
Comprehensive income
(loss) attributable to equity holders of the Bank
|
$
|
1,104
|
$
|
(265)
|
$
|
1,584
|
$
|
4,110
|
$
|
7,968
|
Preferred
shareholders and other equity instrument holders
|
|
82
|
|
23
|
|
64
|
|
196
|
|
182
|
Common
shareholders
|
$
|
1,022
|
$
|
(288)
|
$
|
1,520
|
$
|
3,914
|
$
|
7,786
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Statement of Changes in Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Preferred
|
Total
|
Non-
|
|
|
|
|
|
|
|
|
|
Foreign
|
Available-
|
|
Debt
|
|
Equity
|
|
Cash
|
|
|
|
|
Total
|
shares and
|
attributable
|
controlling
|
|
|
|
|
|
Common
|
Retained
|
|
currency
|
for-sale
|
|
instruments
|
|
instruments
|
|
flow
|
|
|
Other
|
|
common
|
other
equity
|
to equity
|
interests
in
|
|
|
(unaudited) ($
millions)
|
|
shares
|
earnings
(1)
|
|
translation
|
securities
|
|
FVOCI
|
|
FVOCI
|
|
hedges
|
Other(2)
|
|
reserves
|
|
equity
|
instruments
|
holders
|
subsidiaries
|
|
Total
|
Balance as at
October 31, 2019
|
$
|
18,264
|
$
|
44,439
|
$
|
800
|
$
|
-
|
$
|
37
|
$
|
(55)
|
$
|
650
|
$
|
(862)
|
$
|
365
|
$
|
63,638
|
$
|
3,884
|
$
|
67,522
|
$
|
2,670
|
$
|
70,192
|
Net income
|
|
-
|
|
6,582
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6,582
|
|
196
|
|
6,778
|
|
75
|
|
6,853
|
Other comprehensive
income (loss)
|
|
-
|
|
-
|
|
(2,128)
|
|
-
|
|
293
|
|
(81)
|
|
(11)
|
|
(741)
|
|
-
|
|
(2,668)
|
|
-
|
|
(2,668)
|
|
(168)
|
|
(2,836)
|
Total
comprehensive income
|
$
|
-
|
$
|
6,582
|
$
|
(2,128)
|
$
|
-
|
$
|
293
|
$
|
(81)
|
$
|
(11)
|
$
|
(741)
|
$
|
-
|
$
|
3,914
|
$
|
196
|
$
|
4,110
|
$
|
(93)
|
$
|
4,017
|
Shares/instruments
issued
|
|
59
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(9)
|
|
50
|
|
1,689
|
|
1,739
|
|
-
|
|
1,739
|
Shares
repurchased/redeemed
|
|
(84)
|
|
(330)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(414)
|
|
(265)
|
|
(679)
|
|
-
|
|
(679)
|
Dividends and
distributions paid to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
holders
|
|
-
|
|
(4,363)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,363)
|
|
(196)
|
|
(4,559)
|
|
(148)
|
|
(4,707)
|
Share-based
payments(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
5
|
|
5
|
|
-
|
|
5
|
|
-
|
|
5
|
Other
|
|
-
|
|
17
|
|
-
|
|
-
|
|
-
|
|
(27)
|
|
-
|
|
-
|
|
(1)
|
|
(11)
|
|
-
|
|
(11)
|
|
(53)
(4)
|
|
(64)
|
Balance as at
October 31, 2020
|
$
|
18,239
|
$
|
46,345
|
$
|
(1,328)
|
$
|
-
|
$
|
330
|
$
|
(163)
|
$
|
639
|
$
|
(1,603)
|
$
|
360
|
$
|
62,819
|
$
|
5,308
|
$
|
68,127
|
$
|
2,376
|
$
|
70,503
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
October 31, 2018
|
$
|
18,234
|
$
|
41,414
|
$
|
1,441
|
$
|
-
|
$
|
(68)
|
$
|
(126)
|
$
|
(121)
|
$
|
(134)
|
$
|
404
|
$
|
61,044
|
$
|
4,184
|
$
|
65,228
|
$
|
2,452
|
$
|
67,680
|
Cumulative effect of
adopting IFRS 15(5)
|
|
-
|
|
(58)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(58)
|
|
-
|
|
(58)
|
|
-
|
|
(58)
|
Balance as at
November 1, 2018
|
|
18,234
|
|
41,356
|
|
1,441
|
|
-
|
|
(68)
|
|
(126)
|
|
(121)
|
|
(134)
|
|
404
|
|
60,986
|
|
4,184
|
|
65,170
|
|
2,452
|
|
67,622
|
Net income
|
|
-
|
|
8,208
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,208
|
|
182
|
|
8,390
|
|
408
|
|
8,798
|
Other comprehensive
income (loss)
|
|
-
|
|
-
|
|
(641)
|
|
-
|
|
105
|
|
71
|
|
771
|
|
(728)
|
|
-
|
|
(422)
|
|
-
|
|
(422)
|
|
(203)
|
|
(625)
|
Total
comprehensive income
|
$
|
-
|
$
|
8,208
|
$
|
(641)
|
$
|
-
|
$
|
105
|
$
|
71
|
$
|
771
|
$
|
(728)
|
$
|
-
|
$
|
7,786
|
$
|
182
|
$
|
7,968
|
$
|
205
|
$
|
8,173
|
Shares
issued
|
|
255
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(37)
|
|
218
|
|
-
|
|
218
|
|
-
|
|
218
|
Shares
repurchased/redeemed
|
|
(225)
|
|
(850)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(1,075)
|
|
(300)
|
|
(1,375)
|
|
-
|
|
(1,375)
|
Dividends and
distributions paid to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
holders
|
|
-
|
|
(4,260)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(4,260)
|
|
(182)
|
|
(4,442)
|
|
(150)
|
|
(4,592)
|
Share-based
payments(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
7
|
|
7
|
|
-
|
|
7
|
|
-
|
|
7
|
Other
|
|
-
|
|
(15)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(9)
|
|
(24)
|
|
-
|
|
(24)
|
|
163
(4)
|
|
139
|
Balance as at
October 31, 2019
|
$
|
18,264
|
$
|
44,439
|
$
|
800
|
$
|
-
|
$
|
37
|
$
|
(55)
|
$
|
650
|
$
|
(862)
|
$
|
365
|
$
|
63,638
|
$
|
3,884
|
$
|
67,522
|
$
|
2,670
|
$
|
70,192
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as at
October 31, 2017
|
$
|
15,644
|
$
|
38,117
|
$
|
1,861
|
$
|
(46)
|
$
|
-
|
$
|
-
|
$
|
235
|
$
|
(473)
|
$
|
116
|
$
|
55,454
|
$
|
4,579
|
$
|
60,033
|
$
|
1,592
|
$
|
61,625
|
Cumulative effect of
adopting IFRS 9
|
|
-
|
|
(564)
|
|
-
|
|
46
|
|
184
|
|
(179)
|
|
-
|
|
-
|
|
-
|
|
(513)
|
|
-
|
|
(513)
|
|
(97)
|
|
(610)
|
Balance as at
November 1, 2017
|
|
15,644
|
|
37,553
|
|
1,861
|
|
-
|
|
184
|
|
(179)
|
|
235
|
|
(473)
|
|
116
|
|
54,941
|
|
4,579
|
|
59,520
|
|
1,495
|
|
61,015
|
Net income
|
|
-
|
|
8,361
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
8,361
|
|
187
|
|
8,548
|
|
176
|
|
8,724
|
Other comprehensive
income (loss)
|
|
-
|
|
-
|
|
(477)
|
|
-
|
|
(252)
|
|
53
|
|
(356)
|
|
339
|
|
-
|
|
(693)
|
|
-
|
|
(693)
|
|
(111)
|
|
(804)
|
Total
comprehensive income
|
$
|
-
|
$
|
8,361
|
$
|
(477)
|
$
|
-
|
$
|
(252)
|
$
|
53
|
$
|
(356)
|
$
|
339
|
$
|
-
|
$
|
7,668
|
$
|
187
|
$
|
7,855
|
$
|
65
|
$
|
7,920
|
Shares
issued
|
|
2,708
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(19)
|
|
2,689
|
|
300
|
|
2,989
|
|
-
|
|
2,989
|
Shares
repurchased/redeemed
|
|
(118)
|
|
(514)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(632)
|
|
(695)
|
|
(1,327)
|
|
-
|
|
(1,327)
|
Dividends and
distributions paid to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
equity
holders
|
|
-
|
|
(3,985)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(3,985)
|
|
(187)
|
|
(4,172)
|
|
(199)
|
|
(4,371)
|
Share-based
payments(3)
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
6
|
|
6
|
|
-
|
|
6
|
|
-
|
|
6
|
Other
|
|
-
|
|
(1)
|
|
57
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
301
(4)
|
|
357
|
|
-
|
|
357
|
|
1,091
(4)
|
|
1,448
|
Balance as at
October 31, 2018
|
$
|
18,234
|
$
|
41,414
|
$
|
1,441
|
$
|
-
|
$
|
(68)
|
$
|
(126)
|
$
|
(121)
|
$
|
(134)
|
$
|
404
|
$
|
61,044
|
$
|
4,184
|
$
|
65,228
|
$
|
2,452
|
$
|
67,680
|
(1)
|
Includes
undistributed retained earnings of $64 (2019 - $61; 2018 - $62)
related to a foreign associated corporation, which is subject to
local regulatory restriction.
|
(2)
|
Includes Share
from associates, Employee benefits and Own credit
risk.
|
(3)
|
Represents amounts
on account of share-based payments (refer to Note 26 in the 2020
Annual Report to Shareholders).
|
(4)
|
Includes changes
to non-controlling interests arising from business combinations and
related transactions.
|
(5)
|
Refer to Note 4 in
the 2020 Annual Report to Shareholders for a summary of the
adjustments on initial application of IFRS 15.
|
Consolidated Statement of Cash Flows
(Unaudited) ($
millions)
|
For the three months ended
|
For the year
ended
|
Sources (uses) of
cash flows
|
|
October
31
|
|
October
31
|
|
October
31
|
|
October
31
|
|
2020(1)
|
|
2019
|
|
2020(1)
|
|
2019
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$
|
1,899
|
$
|
2,308
|
$
|
6,853
|
$
|
8,798
|
Adjustment
for:
|
|
|
|
|
|
|
|
|
Net interest
income
|
|
(4,258)
|
|
(4,336)
|
|
(17,320)
|
|
(17,177)
|
Depreciation and
amortization
|
|
407
|
|
271
|
|
1,546
|
|
1,053
|
Provision for credit
losses
|
|
1,131
|
|
753
|
|
6,084
|
|
3,027
|
Equity-settled
share-based payment expense
|
|
-
|
|
1
|
|
5
|
|
7
|
Net gain on sale of
investment securities
|
|
(182)
|
|
(125)
|
|
(607)
|
|
(351)
|
Net (gain)/loss on
divestitures
|
|
(1)
|
|
(4)
|
|
(307)
|
|
125
|
Net income from
investments in associated corporations
|
|
(49)
|
|
(161)
|
|
(242)
|
|
(650)
|
Income tax
expense
|
|
418
|
|
596
|
|
1,543
|
|
2,472
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
|
|
Trading
assets
|
|
5,446
|
|
4,106
|
|
9,945
|
|
(27,514)
|
Securities purchased
under resale agreements and securities borrowed
|
|
5,777
|
|
(11,272)
|
|
12,781
|
|
(27,235)
|
Loans
|
|
6,802
|
|
(7,931)
|
|
(25,486)
|
|
(44,337)
|
Deposits
|
|
(12,793)
|
|
15,028
|
|
27,982
|
|
60,705
|
Obligations related
to securities sold short
|
|
(1,799)
|
|
4,383
|
|
1,195
|
|
(1,694)
|
Obligations related
to securities sold under repurchase agreements and securities
lent
|
|
966
|
|
3,232
|
|
11,722
|
|
22,727
|
Net derivative
financial instruments
|
|
(2,580)
|
|
1,502
|
|
(1,949)
|
|
1,964
|
Other, net
|
|
3,465
|
|
(8,251)
|
|
7,527
|
|
(8,881)
|
Dividends
received
|
|
204
|
|
165
|
|
824
|
|
520
|
Interest
received
|
|
7,031
|
|
8,287
|
|
29,572
|
|
32,696
|
Interest
paid
|
|
(2,406)
|
|
(3,802)
|
|
(13,042)
|
|
(15,322)
|
Income tax
paid
|
|
(623)
|
|
(685)
|
|
(1,962)
|
|
(2,958)
|
Net cash from/(used
in) operating activities
|
|
8,855
|
|
4,065
|
|
56,664
|
|
(12,025)
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with financial institutions
|
|
(17,490)
|
|
(1,149)
|
|
(30,346)
|
|
18,014
|
Purchase of
investment securities
|
|
(19,544)
|
|
(21,482)
|
|
(147,629)
|
|
(89,018)
|
Proceeds from sale
and maturity of investment securities
|
|
30,207
|
|
21,846
|
|
119,033
|
|
86,956
|
Acquisition/divestiture of subsidiaries, associated
corporations or business units,
|
|
|
|
|
|
|
|
|
net of
cash acquired
|
|
-
|
|
56
|
|
3,938
|
|
20
|
Property and
equipment, net of disposals
|
|
(203)
|
|
(148)
|
|
(771)
|
|
(186)
|
Other, net
|
|
(212)
|
|
(137)
|
|
(684)
|
|
(568)
|
Net cash from/(used
in) investing activities
|
|
(7,242)
|
|
(1,014)
|
|
(56,459)
|
|
15,218
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
|
Proceeds from issue
of subordinated debentures
|
|
-
|
|
-
|
|
-
|
|
3,250
|
Redemption/repurchase
of subordinated debentures
|
|
(3)
|
|
(1,753)
|
|
(9)
|
|
(1,771)
|
Proceeds from
preferred shares and other equity instruments issued
|
|
-
|
|
-
|
|
1,689
|
|
-
|
Redemption of
preferred shares
|
|
-
|
|
-
|
|
(265)
|
|
(300)
|
Proceeds from common
shares issued
|
|
3
|
|
44
|
|
59
|
|
255
|
Common shares
purchased for cancellation
|
|
-
|
|
(356)
|
|
(414)
|
|
(1,075)
|
Cash dividends and
distributions paid
|
|
(1,173)
|
|
(1,158)
|
|
(4,559)
|
|
(4,442)
|
Distributions to
non-controlling interests
|
|
(7)
|
|
(19)
|
|
(148)
|
|
(150)
|
Payment of lease
liabilities
|
|
(87)
|
|
-
|
|
(345)
|
|
-
|
Other, net
|
|
(218)
|
|
609
|
|
4,135
|
|
2,945
|
Net cash from/(used
in) financing activities
|
|
(1,485)
|
|
(2,633)
|
|
143
|
|
(1,288)
|
Effect of exchange
rate changes on cash and cash equivalents
|
|
(96)
|
|
(62)
|
|
(129)
|
|
2
|
Net change in cash
and cash equivalents
|
|
32
|
|
356
|
|
219
|
|
1,907
|
Cash and cash
equivalents at beginning of period(2)
|
|
11,091
|
|
10,548
|
|
10,904
|
|
8,997
|
Cash and cash
equivalents at end of period(2)
|
$
|
11,123
|
$
|
10,904
|
$
|
11,123
|
$
|
10,904
|
(1) The
amounts for the period ended October 31, 2020 have been prepared in
accordance with IFRS 16; prior year amounts have not been restated
(refer to Notes 3 and 4 in the 2020 Annual Report to
Shareholders).
|
(2)
Represents cash and non-interest-bearing deposits with financial
institutions (refer to Note 6 in the 2020 Annual Report to
Shareholders).
|
Basis of preparation
These unaudited consolidated financial statements were prepared
in accordance with IFRS as issued by International Accounting
Standards Board (IASB) and accounting requirements of OSFI in
accordance with Section 308 of the Bank Act, except for certain
required disclosures. Therefore, these unaudited consolidated
financial statements should be read in conjunction with the Bank's
audited consolidated financial statements for the year ended
October 31, 2020 which will be
available today at www.scotiabank.com.
Forward-looking statements
From time to time, our public communications often include oral
or written forward-looking statements. Statements of this type are
included in this document, and may be included in other filings
with Canadian securities regulators or the U.S. Securities and
Exchange Commission, or in other communications. In addition,
representatives of the Bank may include forward-looking statements
orally to analysts, investors, the media and others. All such
statements are made pursuant to the "safe harbor" provisions of the
U.S. Private Securities Litigation Reform Act of 1995 and any
applicable Canadian securities legislation. Forward-looking
statements may include, but are not limited to, statements made in
this document, the Management's Discussion and Analysis in the
Bank's 2020 Annual Report under the headings "Outlook" and in other
statements regarding the Bank's objectives, strategies to achieve
those objectives, the regulatory environment in which the Bank
operates, anticipated financial results, and the outlook for the
Bank's businesses and for the Canadian, U.S. and global economies.
Such statements are typically identified by words or phrases such
as "believe," "expect," "foresee," "forecast," "anticipate,"
"intend," "estimate," "plan," "goal," "project," and similar
expressions of future or conditional verbs, such as "will," "may,"
"should," "would" and "could."
By their very nature, forward-looking statements require us to
make assumptions and are subject to inherent risks and
uncertainties, which give rise to the possibility that our
predictions, forecasts, projections, expectations or conclusions
will not prove to be accurate, that our assumptions may not be
correct and that our financial performance objectives, vision and
strategic goals will not be achieved.
We caution readers not to place undue reliance on these
statements as a number of risk factors, many of which are beyond
our control and effects of which can be difficult to predict, could
cause our actual results to differ materially from the
expectations, targets, estimates or intentions expressed in such
forward-looking statements.
The future outcomes that relate to forward-looking statements
may be influenced by many factors, including but not limited to:
general economic and market conditions in the countries in which we
operate; changes in currency and interest rates; increased funding
costs and market volatility due to market illiquidity and
competition for funding; the failure of third parties to comply
with their obligations to the Bank and its affiliates; changes in
monetary, fiscal, or economic policy and tax legislation and
interpretation; changes in laws and regulations or in
supervisory expectations or requirements, including capital,
interest rate and liquidity requirements and guidance, and the
effect of such changes on funding costs; changes to our credit
ratings; operational and infrastructure risks; reputational risks;
the accuracy and completeness of information the Bank receives on
customers and counterparties; the timely development and
introduction of new products and services; our ability to execute
our strategic plans, including the successful completion of
acquisitions and dispositions, including obtaining regulatory
approvals; critical accounting estimates and the effect of changes
to accounting standards, rules and interpretations on these
estimates; global capital markets activity; the Bank's ability to
attract, develop and retain key executives; the evolution of
various types of fraud or other criminal behaviour to which the
Bank is exposed; disruptions in or attacks (including
cyber-attacks) on the Bank's information technology, internet,
network access, or other voice or data communications systems or
services; increased competition in the geographic and in business
areas in which we operate, including through internet and mobile
banking and non-traditional competitors; exposure related to
significant litigation and regulatory matters; the occurrence of
natural and unnatural catastrophic events and claims resulting from
such events; the emergence of widespread health emergencies or
pandemics, including the magnitude and duration of the COVID-19
pandemic and its impact on the global economy, financial market
conditions and the Bank's business, results of operations,
financial condition and prospects; and the Bank's anticipation of
and success in managing the risks implied by the foregoing. A
substantial amount of the Bank's business involves making loans or
otherwise committing resources to specific companies, industries or
countries. Unforeseen events affecting such borrowers, industries
or countries could have a material adverse effect on the Bank's
financial results, businesses, financial condition or liquidity.
These and other factors may cause the Bank's actual performance to
differ materially from that contemplated by forward-looking
statements. The Bank cautions that the preceding list is not
exhaustive of all possible risk factors and other factors could
also adversely affect the Bank's results, for more information,
please see the "Risk Management" section of the Bank's 2020 Annual
Report, as may be updated by quarterly reports.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2020
Annual Report under the headings "Outlook", as updated by quarterly
reports. The "Outlook" sections are based on the Bank's views and
the actual outcome is uncertain. Readers should consider the
above-noted factors when reviewing these sections. When relying on
forward-looking statements to make decisions with respect to the
Bank and its securities, investors and others should carefully
consider the preceding factors, other uncertainties and potential
events.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives and priorities, and anticipated financial performance as
at and for the periods ended on the dates presented, and may not be
appropriate for other purposes. Except as required by law, the Bank
does not undertake to update any forward-looking statements,
whether written or oral, that may be made from time to time by or
on its behalf.
Additional information relating to the Bank, including the
Bank's Annual Information Form, can be located on the SEDAR website
at www.sedar.com and on the EDGAR section of the SEC's website
at www.sec.gov.
December 1, 2020
Shareholders Information
Direct deposit service
Shareholders may have dividends
deposited directly into accounts held at financial institutions
which are members of the Canadian Payments Association. To arrange
direct deposit service, please write to the transfer agent.
Dividend and Share Purchase Plan
Scotiabank's dividend
reinvestment and share purchase plan allows common and preferred
shareholders to purchase additional common shares by reinvesting
their cash dividend without incurring brokerage or administrative
fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional
common shares of the Bank. All administrative costs of the plan are
paid by the Bank. For more information on participation in the
plan, please contact the transfer agent.
Dividend dates for 2021
Record and payment dates for
common and preferred shares, subject to approval by the Board of
Directors.
|
|
Record
Date
|
Payment
Date
|
|
|
January 5,
2021
|
January 27,
2021
|
|
|
April 6,
2021
|
April 28,
2021
|
|
|
July 6,
2021
|
July 28,
2021
|
|
|
October 5,
2021
|
October 27,
2021
|
Annual Meeting date for fiscal 2020
Shareholders are
invited to attend the 189th Annual Meeting of Holders of Common
Shares, to be held on April 13, 2021
beginning at 9:00 a.m. EDT. The
record date for determining shareholders entitled to receive notice
of and to vote at the meeting will be the close of business on
February 16, 2021. Please visit our
website at https://www.scotiabank.com/annualmeeting for
updates concerning the meeting.
Duplicated communication
Some registered holders of
The Bank of Nova Scotia shares
might receive more than one copy of shareholder mailings, such as
this Annual Report. Every effort is made to avoid duplication;
however, if you are registered with different names and/or
addresses, multiple mailings may result. If you receive, but do not
require, more than one mailing for the same ownership, please
contact the transfer agent to combine the accounts.
Annual Financial Statements
Shareholders may obtain a
hard copy of Scotiabank's 2020 audited annual consolidated
financial statements and accompanying Management's Discussion &
Analysis on request and without charge by contacting the Investor
Relations Department at (416) 775-0798 or
investor.relations@scotiabank.com.
Website
For information relating to Scotiabank and its
services, visit us at our website: www.scotiabank.com.
Conference call and Web broadcast
The quarterly
results conference call will take place on Tuesday, December 1, 2020, at 7:15 a.m. EST and is expected to last
approximately one hour. Interested parties are invited to access
the call live, in listen-only mode, by telephone at 416-641-6104 or
1-800-952-5114 (North America
toll-free) using access code 1645183#. Please call shortly before
7:15 a.m. EST. In addition, an audio
webcast, with accompanying slide presentation, may be accessed via
the Investor Relations page of www.scotiabank.com.
Following discussion of the results by Scotiabank executives,
there will be a question and answer session. A telephone replay of
the call will be available between Tuesday
December 1, 2020 and Thursday
December 31, 2020, by calling 905-694-9451 or 1-800-408-3053
(North America toll-free). The
access code is 2953890#. The archived audio webcast will be
available on the Bank's website for three months.
Additional Information
Investors:
Financial Analysts, Portfolio Managers and
other Institutional Investors requiring financial information,
please contact Investor Relations, Finance Department:
Scotiabank
Scotia Plaza, 44 King Street West
Toronto, Ontario, Canada M5H
1H1
Telephone: (416) 775-0798
E-mail: investor.relations@scotiabank.com
Global Communications:
Scotiabank
44 King Street West, Toronto, Ontario
Canada M5H 1H1
E-mail: corporate.communications@scotiabank.com
Shareholders:
For enquiries related to changes in
share registration or address, dividend information, lost share
certificates, estate transfers, or to advise of duplicate mailings,
please contact the Bank's transfer agent:
Computershare Trust Company of Canada
100 University Avenue, 8th Floor
Toronto, Ontario, Canada M5J
2Y1
Telephone: 1-877-982-8767
Fax: 1-888-453-0330
E-mail: service@computershare.com
Co-Transfer Agent (U.S.A.)
Computershare Trust Company, N.A.
Att: Stock Transfer Department
Overnight Mail Delivery: 462 South 4th Street, Louisville, KY 40202
Regular Mail Delivery: P.O. Box 505005, Louisville, KY 40233-5005
Telephone: (303) 262-0600 or 1-800-962-4284
For other shareholder enquiries, please contact the Corporate
Secretary's Department:
Scotiabank
Scotia Plaza, 44 King Street West
Toronto, Ontario, Canada M5H
1H1
Telephone: (416) 866-3672
E-mail: corporate.secretary@scotiabank.com
Rapport trimestriel disponible en français
Le Rapport
annuel et les états financiers de la Banque sont publiés en
français et en anglais et distribués aux actionnaires dans la
version de leur choix. Si vous préférez que la documentation vous
concernant vous soit adressée en français, veuillez en informer
Relations publiques, Affaires de la société et Affaires
gouvernementales, La Banque de Nouvelle-Écosse, Scotia Plaza,
44, rue King Ouest, Toronto
(Ontario), Canada M5H 1H1, en joignant, si possible,
l'étiquette d'adresse, afin que nous puissions prendre note du
changement.
SOURCE Scotiabank