BNS - Earnings call transcript Q1 2018 | The Bank of Nova Scotia

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Adam Borgatti

Good morning and welcome to Scotiabank’s 2018 First Quarter Results Presentation. My name is Adam Borgatti, Vice President of Investor Relations. Presenting to you this morning is Brian Porter, Scotiabank’s President and Chief Executive Officer; Sean McGuckin, our Chief Financial Officer; and Daniel Moore, our Chief Risk Officer.

Following our comments, we will be glad to take your questions.

Following our comments, we’ll be glad to take your questions. and with heads, take Banking James Deschamps International room business are and the Global from group from line O’Sullivan Banking in us Markets. questions to Scotiabank’s Nacho Banking Also and Jentsch Dieter from Canadian

on of turn Brian Before X With speaking today, to presentation, that, forward-looking the statements. which to contains I of I we behalf those now refer call will over Porter. start you regarding will and our Slide Scotiabank’s caution

Brian Porter

morning good are per and in Thank I’ll the start strong quarter, we Adam you, diluted XXXX. share billion X; slide everyone. for year. the delivered up very bank’s earnings on $X.XX earnings and X.X with XX% pleased of last Scotia compared start to Bank to

strong our equity and XX.X% on medium objectives. return within Our was term at

are to our This an by X% $X.XX year. to over dividend represents $X.XX per the prior share. increase increasing We shareholders

like had $X with some business growing Turning make improve comments. in to primary our division’s customers, The and billion. in Banking Canadian be earnings capabilities experience structural continues investments reducing performance clients, supported to the to banking to cost. by quarter strong excess I’d digital another customers of

enterprise ratio XX% foreign ahead Alliance. in ongoing structural common with Canada bank through quarter. independent acquisition under management with well, our Colpatria on platform strategic fixed largest a in our following markets join personal process earnings of as bank and results in capabilities we another and Jarislowsky dividends progressing asset ultra-high actions in building the execution significantly optionality the the Chile businesses business third earnings and schedule, good X exchange leading commitment Through strong create our momentum commercial in a and our we banking driven for our year QX, return end performance to XX for credit equities, us our consumer produced a record, with equity Pacific well On bank operating The together firm. At widely Limited, are cost Banking are in the the fully of positive enhances strong strong this quarter previously remains excited also our our BBVA to basis. in billion operations The quarter. income one track aligned forces. leading Bank’s of XX.XX% return financial caliber for to Scotia our operating The roughly Fraser pro on institutional solid through delivered strategy Alliance, X.X% growth generated Pacific Bank Canadian these build growth Colombia, performance Taken and January has double-digit has quarter’s global our loan capitalized of for wealth the a International credit operating on individuals. acquire billion and in with to strong medium tier adjusted transaction shareholders. this and across proven solid and assets are and position The a the forma quarter equity. Fraser capital leverage with Overall, reflects a disciplined XX.X% quality. its businesses commercial our level, under and acquisition Pacific the The organically, investment shareholders. approximately and agreement with and and institutional leverage. we positions improving or our management on and diversify earnings, Citibank earnings firm very our had strong Global management. of initiatives small with strong our Along our management presence. recognized manager XXX an in enterprise been of very by growth are to or value with announced end, the card invest Jarislowsky plan acquire Alliance strategy reached issuer leverage Canadian generating sustainably increases and will provides Colombia. to Banco of and to announced our active banking team XX, shareholders. research we acquisitions The are bank’s investment network to across the Canada grow creates global assets and high Subsequent businesses transactions,

few over turn investor Investor the month. the day, and competitive work I our held to Bank highlighted done past transformational comments a of we we’ve to earlier which Before over All call in years some wanted strong several we more much a bank. Day build on make this our to I Sean, the At

and culture, Our materialize. and improved rated heavy goals strengthening focused alignment our key achieving the liquidity digital the untapped critical are developing transforming leader and more of these Many loaded much profile. our funding realizing and the bank, were which bank and areas structure by across strategically our that dial benefits to sheet front-end cost balance was efforts for is right, turn fundamentals teams being lifting setting starting getting operationally, reshaping and on potential, now our performance including to five an a will the both aspirational a leadership the

our focused all tissue and is the the scale and bank. which our our partnerships connected of areas key for customers; leveraging controls. by superior strengthening our and core of experience the three of strategy untapped digital our primary bank organic capabilities growth, have our across including focus, use we potential are by deeper better building footprint; the underpinned and increasing These developing customers of a enhancing geographic harnessing areas forward, making Looking share and

financial see raised we Finally, them. and our discuss quality our will call front I confidence to and Sean the now EPS medium plus, some of our will of performance in X% growth objective return in to increased with remarks. the we closing term the opportunities over to turn reflecting us ceasing

Sean McGuckin

in our employee on QX shows for resulting is EPS. which $X.XX year-over-year. income of our results of begin re-measurement earnings Thanks in key credit X, or benefit per Brian. of $X.XX metrics diluted performance of The financial million net an I Included share XXXX. XXX reported diluted bank XX% will slide

was Expenses and fee core last currency the banking X year. the was adjusted and growth revenues impaired Our banking to leverage further The fees and was reported X%. as retail compared partly the and offset insurance were the and a quarter, bank the with cost The of strong up an internationally, technology, digital estate positive ratio. as million from initiatives. margin and bank’s quality year. translation remain last impact operating more and lower basis strong basis, investments to loss expenses X, X% XX in commission There primarily of were points and good lending credit. and and interest of basis basis The basis, key offset commercial capital benefits year gains. stable, of over was basis and capital last Canada we The were was non-interest the banking, reduction a up by HollisWealth points. reversal credit on impact On trading impact improvement on in the business sale common by portfolios delivered last credit the this productivity the markets bank down Net up well in businesses due of versus ratio but in X commercial of for for and credit from loans common with a offset of income real loans Higher higher retail points X% our a sale equity ratio employee-related of strong of XX points provision professional of provisions last ratio On foreign improving XX last provisions the last at continued partly securities X% Adjusting to re-measurement HollisWealth currency growth costs X%, partly aforementioned performing for foreign by maintain modest net contributed strong growth X a impact sale of roughly of impaired ratio PCL capital or pace points basis improved are the loans translation, year when further XX and equity deposits. revenues modest tier grew almost on core capital year. growth. up XX.XX%. the growth provide lower evolution of continues Internal earnings recovery XX global up quarter. delivered double-digit generation Revenue banking resulting to versus strong organic tier adjusting reported combined to position quarter, our on XX%. QX slide or

basis Basel IFRS points This impacts impacted X the I quarter by also was additional and of transitional an full the to XX of floor. XX basis points negatively

to basis assets roughly basis. the second in ratio Basel However, pro common on XX.XX% is tier forma a XX increased quarter-over-quarter increasing a effective billion. or one risk-weighted CET-X by equity new $X II quarter, or our points X% The

to and Global improvements to growth known IFRS our on to attributed based now to were retail IFRS QX due IAS attributed XX on Stage fiscal The quality X, ’XX Moving certain is loans, transition and of net our period slide as part And stated credit impaired loans allowances based current that Stage I I the of Banking in Canadian as saw as credit XX on not all reduction The transition commercial IFRS XX quarter to IFRS provision Banking on will capital XXX basis also portfolios, changes be prior provisions. negative X, impact loans. impaired QX was result corporate equity X, to We minimal points. was total of X. of and equity II performing mentioned previously million, million losses and primarily reversal are a retail performing markets a for net earlier included to as common loans one tier XX. mainly the in

interest sale on cost Expenses strong was impact X% reduction well were loans and a credit an continued HollisWealth up improvement than the ratio operating Banking Provision quarter-over-quarter. of the regulatory X were the year-over-year. digital technology, business quarter year-over-year driving results credit in strong to initiatives sale strong Residential partly the of year-over-year. increased net a XX% line on offset The X% mortgage reflect year, banking income impact results XX, growth, revenues driven acceptance were margin X.X X% growth X% performance was up last Turning controlled leverage. improved delivered productivity loans points decreased Loans HollisWealth improved basis more up by in year. and from and initiatives our Higher of Total stable last by and leverage, the expansion, offset on business XX%. with up and last billion, positive for impaired year. and Canadian and produced income asset progress are to growth beginning XX.X%. Canadian X% investments operating by year. strong slide from positive net losses of last the

international were Turning to on up million year-over-year XXX impact of or XX% currency XX% the next in slide the QX earnings banking, translation. foreign to of adjusting

ago, loss X led international down basis was comments in The year-over-year, ratio growing Revenues America currency quarter. grew was XX%. year-over-year. and a Our America. positive and points asset on by impaired XX% previous X.XX% driven results interest X follow Latin up lower year QX by with X% increase by constant net income up strong region the stable loans XX% a The the net compared The with in including basis. loan margin reflected on operating interest mainly basis banking business that taxes. by to leverage deposit was are X% mix. growth, Loans grew points on changes Latin margin of a

technology benefits were productivity underlined up initiatives. both completion business strong the loan last volume in Excluding loans growth, leading the an on costs improvement year last quarter. versus reduction the as investments previous impaired partly X%, cost and improved and leverage were was acquisition ratio X% increased to offset higher by Expenses loss a digital positive and Operating ratio. related year,

XX, global slide and corporate markets impact by as QX XXX doubled investment levels, were nearly and bank XX%, X% primarily Banking fixed of on year-over-year. equivalent increased and metals global of were income more basis trading constructive. Higher income. due year-over-year from X% income All global a fixed offset Global Revenues year, down net last banking, tax to net Markets; million precious compared were down income were trading basis, foreign quarter-over-quarter lower a revenues reflecting was to Moving revenues. translation. lower On XX% banking but ’XX equities the contributions down to currency

X% and higher year-over-year. year-over-year as basis However, lending was driven and from currency basis adjustments. of up income of impact and by was operating of compensation interest other positive certain up deposit well net impaired offset I’ll the the results and units loan probably ratio related mainly of on which X PCL segment The XX% turn quarter-over-quarter loans cost lower XX and a liability impact to regulatory smaller Expense growth higher good net reflected on and as incorporates based slide results net now translation. foreign of the margins. management assets technology treasury, and volumes reversal performance by points point, fees include The share improvement activities. X higher corporate

a over segment turn benefits in quarter. investment re-measurement risk management. this review financial it This gains net reported our my million expenses. offsetting now the earlier. Daniel, Partly of discuss this Earnings segment I’ll other will lower The referred employee of who income completes credit higher on included I to were securities and to XX results;

Daniel Moore

with comfortable Sean. the of you, we to bank’s now to portfolios. fundamentals the remain XX; I’ll Thank turn risk slide continue

on Sean our X basis impaired last to all loans ratio XX ratios the PCL year. seeing commercial earlier. points million IFRS by last across the are increasing terminology is Overall, points personal XX loans X on ratio improving in businesses improvements that reflects IFRS spoke and in was is what and PCL same as a or quarter, basis, our points referred Canada net in from quarter X internationally. XX in basis to On banking and points X basis stage Our basis reversal performing we bank but PCL X

improved Specifically of periods product Canada all categories. our across in retail rates delinquency prior from

average uninsured value XX% portfolio of loan ratio has and substantial equity residential risk, providing the XX%, of and Our a to quality insured an mortgage buffer. portfolio is high lower is

origination to we adjudication credit all have of XX%, These in we mortgage reflect levels. New average across place originations with continues maintain consistent margin standards based in are an our to quarter strong this loan value consistent prior and of results underwriting practices channels. on

Central performance trends. to longer Moving In Caribbean to Retail impacted quality the we see adjustments Mexico, results Chile, the International America on generally no which was are from continue benefits Banking; and across the to and good Colombia. are stable improving by region credit and Peru, acquisition recognized.

continue natural and We impacted international by footprint. monitor growth across programs in unsecured assistance of our impacts customer events areas lending the to in

sector. we but (inaudible) exchanged both we In improved in loans However, impaired stable, quality our energy portfolio related is reversals the markets, largely performing appetite. to Global Banking credit and in

were at credit roughly gross metrics, at billion. generally X our loans looking stable Now impaired

Sean standards we under Banking’s IFRS quarter reflect the to International discussed. Overall, XXX our around points see notwithstanding adoption each over loss or again move credit XX you diversification X points, in purposes of are and improved measures There basis IAS losses of credit I losses the PCLs XX. Turning the our as IAS as with can robust to points quarters. attention and in prior expected to drive last basis slide to X businesses. to of prior impaired XXX XX, Banking’s basis forward. continue acquisition benefits comparability recent for your trend Canadian ratio consistent we more on loans to going stage current excluding impact believe portfolios our from III through

underlying Our remains strong. performance

you Turning XX, for trend to write-off net can businesses. each rates of recent the slide our see

As Investor indicative recent discussed we write-off it between economic economic and Day, our of we to Bank believe believe and is during distinguish is performance. important our performance, accounting experience that net All

expect would I’ll over has and back five quarters, the last over Brian. net ratio the we call that normally stable been turn now continue. to our write-off Looking trend to

Brian Porter

strong Bank. Canada, momentum takeaways and and start the Daniel, in to investing focus our Scotia you year, on We while sharp Thank outlook continuing comments to highlight the target capabilities some presentation number the a to we the of last like of through I’d In the productivity. key results maintaining the delivered for customers growth continue revenue on digital primary increasing built we improving from over year.

in specifically, improve see a our a connectivity. markets strong the will to For we the potential anticipate footprint seeing densify be More growth are typically economy in we benefits Pacific that Alliance our remain current reach we in we modernized on for to International tailwind markets. Bank, parties that and output partners, in GDP for lot we as US significant US countries, we of to the leads see businesses. increase key always in International growth an NAFTA continue hopeful negotiations and continue town, US A our as trading agreement. across leverage our global strong presence and great key increases can forecast

However, the any give market. positioned country’s improve context, Global in as footprint the extensive to and approximately of Mexican our we we Banking To Mexico well before our given results. expanding last to particularly have continue are and is confident we investment free some outcome. agreements, private trade are markets, to the grew X% adjust capabilities sector year network in in said Mexico NAFTA In and banking the of to resilience

investments to enhance to customers. transform and and bank streamline are the we grow efforts We primary support processes continue more the to experience to our digitally further customer making growth make and us efficient, redesign

allowing and Our as investments us capital our position businesses shareholders higher in remains by dividend. to to make evidenced grow increase of the strategic strong our capital to returns support

many turn to about I untapped Q&A. and have optimistic call are the We future. areas Sean very of for will we back now the the potential banks

Sean McGuckin

we Please remarks. on we to can call. to to Brian. queue the pleased take participate questions. phone join question one We’ll the everyone now That our concludes Operator, the your the limit the and allow Thanks be to please. have prepared in opportunity yourself then first question

Operator

ahead. CIBC from question first Capital go [Operator of Instructions] Robert Sedran comes our Markets. Please

Robert Sedran

planning and from to I to do to creep Jarislowsky likely about actually in to or it to I’m Chile that the seeing the Colombia, and any lower rather somewhere why XX% wait that little I’m you that level land And where closes, intended – around coming Brian repurchase the deal in reason guess bit and curious level shares operating towards until if just feels higher out terms maybe we’re that not deal Jarislowsky I there still close. of Is for actually just XX% wanted after CETX. you’re you’re mid-XXs. like you’re a something than ask is

Sean McGuckin

one It’s Sean, and I’ll Rob. take that

So to take accretion and the quarters, which the place in couple we you’re after couple acquisitions quarters, next some around XX%. a expect after in capital right will be of of over

that will of terms the to the In transaction, buying we Fraser start the of related back due shares to course. look Jarislowsky in

will level back. But right terms or of said We peer XX% we’ve possibility that as opportunistic being higher price to in group the to finding as of is buy towards be the our try before, around end optionality.

You may comfortable we’re our find around being for the below us and of but in a bit higher kind XX%, think purposes end of acquisition I and XX% targeting dipping towards peers.

Operator

We’ll ahead. Please our of from Mario Securities. Mendonca next take quarter TD go now

Mario Mendonca

recently maybe does a and speak you’ve the in your all both you mortgage and Did and about mortgage country. housing work prevent a and just what of Scotia. what to mortgage what quarters. done, a to terms the been have Sean or you modest hearing concerns far a so what uncover it of bank and what monitor than resurfaced does about theme your the or for One particular it fraud we’re actually fraud Daniel, of with tests have seen, is fraud more the amount and has have experience detect different for vengeance potential Canadian point talking the the market of bit in from lot in

Sean McGuckin

question. to O’Sullivan answer James that ask I’ll

James O’Sullivan

with whether in QX standards lot a quality there It of made three specific about a and and bank our same made and lot led probably in to a same record the that Moore’s few underwriting by think risk distribution And as if it’s enhancements I’d as remarkably reflected of progress adjudication of we’ve or BXX you think So channels the course as industry, delinquency few thoughts; policies, well other have thresholds, to And say the channel. know thing year-over-year. tightening And the was the reached verification. There’s past that is sales overall is risk its And exact we over oversight an channels Mario first, the Mario, ratio. we’ve we whole in I’d years XX we points. those in direct down independent I our portfolio of Daniel across team. made be our ratio awful delinquency have of basis a income do less out low quite and channel progress been point whether broker the just force thing up. an within three

specific We claw-backs have for credit fraud issues. and

fraud, add in at to to look seen quite we we may that. fact been as stable in some if fraud, an has for Daniel so it time want not have And increase

Daniel Moore

positive said I’ll from is you claims to rate closely just delinquency back we how XX as trend that’s in XX adjudicate day We’ve all number and mortgages credit the seen we’ve on what risk last over indicator warning improving appetite. days of actually our with and James, delinquency it we process quarters. to an stop or continue the and apply monitored same line channels, very our whether a early the the policy

portfolio Mario. comfortable very we’ve our with So

Mario Mendonca

Now can same I we and that those happen the can simultaneously. delinquencies mean low fraud two have all know very time, you at

mortgage distributed and the work – broker fraud originated any in the fraud channels. you’ve reviewing for intensity so you the your is offer in far in of as any book for broker you the and it, in can by can anything I’m between talk propensity done the Proper in what and level there mortgages terms the you’ve Scotia differences seen by referring about mortgages So of to

Brian Porter

been where have you’d for as or meaningful we as a quarter, distinguishable in seen there mortgages of have them as we has not have every We Mario, a has three but across fraud management not and no again I’ve significant this long have those frauds, amongst And as product surfaced expect as this channels. whatsoever. fraud fraud I’ve topic. mortgage been in been chair been has as long amount do a chair, unit, trends we

Operator

go from Bank Lynch. We will Please question now Poonawala Ebrahim Merrill ahead next of America take from our

Ebrahim Poonawala

for if wondering last talk was this flat you’ve sort there the I outlook your margin, PNC of get quarters. can the the for about line a marginal few just love seen outlook Would you in Canadian to to if expect BOC an lower expectations trend that expect year. of the do also terms what do you’re in or And attempt banking margin, to to the continue to what are? international you you

James O’Sullivan

just I’ll Canadian with so quarter It’s the moving basic to at the margin year it its after some as many increases, points worth and and the to progresses. margin sense XX increase to the are the this than the forecast that year-over-year. X as up to up Bank clearly start Banking a But pre-tax. James, you in is be increase a The margin; of bit the outlook assuming of basis there XX Banking XXX, XX direction X risk After this to expect Canadian improve I’ve continues Canadian million challenging worth in up this points Hi specific Canada tax know is of year Roughly obviously. sensitivity each to to the pieces. of of rate Canadian Banking over balance million of points. more further is rate basis Banking roughly there’s no we’d further see basis kind

Nacho Deschamps

This is Nacho.

has that of more, really is main retail driver mix year-over-year the main commercial our growth, retail is there are faster but of stable. and than was franchise, as many the component. commercial grown need on terms quarter-over-quarter although James variations, leading and basis that to Banking In a some the components the International says And given international and

margins remain and risk we in margin the we expect our stable More adjusted stable, underlying our risk term. to medium see importantly adjusted

Ebrahim Poonawala

– And are be the longer to Got expectations to rates to it. to million of your you of and what sort XX of just in XX are term in that terms going about impactful you think each James how of follow-up the rate sort those terms mentioned. hike, million

James O’Sullivan

take that one. I’ll

there’s rates higher division. obviously between capital ascribed interest term long they of pricing to that transfer center, value higher over time fund so go the will as So get

So rate they the and the rate term increases. near-term from benefit overtime longer increases will

Operator

Bank go Dechaine Financial. Please Gabriel comes Our ahead National from next question from

Gabriel Dechaine

I commercial just the in the outlook go business there about you to And for in then the and International portfolios? slide you what’s I X changed to your added and in resale IFRS want your talk impact a to the XX these for see funds of [cost] and quarter. bit released the portfolio. Can portfolio

Daniel Moore

I can stage portfolio and growth good increase an Moore. speak risk adjusted Banking strong in asset International due retail by X which to In to Daniel is the X side that, its our supported we margin. had in

the quality. commercial had driven On backing by with quality credit we’ve released consistent overall side, [GBM] to clean we (inaudible) was and which and release is which a stage the the improved with had do credit

Gabriel Dechaine

in So the bit retail change on I higher or the that losses as expect a growth that what? makes more book you guess of particular it portfolio the

Daniel Moore

outright the stock standard, that of in go these growth primary will No, with those (inaudible) and gotten factors change there’s we’re that factors previous in calculation number seeing growth, quality indicator economic here really portfolio the changes. X, be a stage to portfolio. X credit and be has changes it than volume three volume more And complicated

Gabriel Dechaine

in sneak And there. then just another one to

but risk healthy rate. coming is still great. year your want personal You mostly a But margin looks so just which Canadian margin flat loan spread current focusing compression balances growth, – be a for we’re despite despite and sense, to get now pretty throwing I and at loan to why on or double-digit adjusted the from past commercial it

why that we – it level coming are spread is seeing where So from? or of

Sean McGuckin

the Bank margin of you Canada This we’ve of expansion I because primarily is hikes. recent is say Sean, as quarter-over-quarter deposit seen what mentioned, would in and

the assets. the rates were We up have was of seen a as bit on some moving faster longer compression, term mortgages than spreads asset the funding tighter the in QX pricing

we’d quarters couple somewhat. like next the reverse of see Over to that

year. as the coming our basis Canadian in margin year over again expect of points the upwards James towards would end to So go mentioned, of X Banking we the

Gabriel Dechaine

an Did gain? interact you do

Sean McGuckin

quarter, We did on have yes. that a this gain

Gabriel Dechaine

million? XX Of

Sean McGuckin

It that by estate gains. was was to quarter that level, around this gains interact offset that important the note Banking year-over-year it’s Canadian but lower real recording

true Canadian XX% performance So is of performance. at the the underlying underlying Banking

Operator

Desjardins from Markets. take next Capital We’ll our Mr. Young ahead. Doug go question from Please

Doug Young

divisions, guess Pan that of seeing year-over-year, is you’ve specifically can Nacho, done of bit been bit probably But challenged. out more the up an Colombia, has that’s acquisition just of question in some were a business. I acquisition Citi’s been or this Colombia XX% the recent in know flush know earnings hoping a I area you what and you’re little during but America I of for the Citi recent terms

seeing there as to of wanted you’re a if Just see bit well? reversal

Nacho Deschamps

cost the in Colombia, softer of Colombia high XXXX. by of are strong a crossed I What that deposit see very leverage. Pacific of case in strong, revenues lines improving are the coming of performance double-digit of inflation. pleased I’m say a countries, we Mexico growing is control difficult Colombia XX%, performance performance growing the XXXX a around structural and too, the and growth, Alliance also PCLs. and performance encouraged as is financial the have International better very out particularly most to we have the and is commodities and the strong has very to considering system we under Colombia to growth, economic better the results higher very quarter, Peru operating economy would with been the this at compared trends; year. expect affected (inaudible) Colombia in is strong underlying and we Banking, of XX% cycle in In of is Chile you saw even with But the strong seeing

Doug Young

or of quarter those. unusual in benefits anything came the there was any any that and through And

that. tax had I But think is bit that through if know the quantified gain, don’t a in Mexico of unusual flowed there anything a I quarter? you’ve

Nacho Deschamps

taxes earnings in in footprint. strong Chile, consider performance, Mexico revenue We Pacific and development strong growing even positive a capital the particularly program. before due in XX%. across you in the Alliance markets very had the business corporate quarter a But if very had We’ve to wealth repatriation our very quarter

So it was across solid the a quarter lines.

Operator

comes Grauman question Please Securities. next from Meny of Your ahead. Cormark go

Meny Grauman

down. was down we caught of and quarter, trading towards up when quarter end the the that know applied revenue pickup [XX] the spike kind in volatility We in towards then immediately end there but and my trending trading eye, just of coming the it a of the

you that the far and anything the quarter. is if so comment for outlook in on going on could notable specifically just that’s second there wondering trading there So that’s

Dieter Jentsch

Dieter It’s Jentsch.

of two volatility Canada the we prior of and its saw the up the were take in in And it really that January, quarter saw we in of Bank so we saw lots quarter. of relatively and soft rate First picked months increase activity the terms trading place.

a As But was the that bit. revenues. overall of January. quarter began volatility you are is markets in into little pickup of trading and little month we calmer of market’s the it calm down two-thirds more trading being the bit see the constructive saw And ongoing and actually to markets way then near overseeing now end equity a markets, matter of fact probably quite once constructive more of see February and the revenue the a we the equity

Meny Grauman

changed your on And that, have just at potential news related there on rumors questions was was of and some if any last sale a about business just buyer. you view all? Mocatta there late about update there that some Wondering year

Dieter Jentsch

a services liquidity. and our key markets, key of and recently and our more simplifying our our that allocation most key be and confirm statutory exiting we’ll suite product I’m we’ll But capital will that this and we some business be markets clients much we be will pleased Well of continuing. be judicious included to our about review said, of

Operator

Your Markets. from Capital Movahedi BMO go ahead. next of Sohrab Please comes question

Sohrab Movahedi

any that over a of X the under quarters. stages quick the say see have the PCL next for outlook you for X look X. volatility out combined you Just at thoughts combine to guess expect X and X, I X, Daniel, you let’s stage question IFRS X, and to of may the when X, on but if level the

Daniel Moore

X, credit we continued on would quality both Sure. quarter economic our and going quality with the cycles [unrewind] say had economic performance immediate Thank the been our increasing as in and QX and stage in X, driven PCL X. be by had case Sohrab. respect stage improved going portfolio to this our that movements analytical that collections obviously upgrading more has more that capabilities be customers A, nine, overall volatility to you book, volatile I we sensitive retail focus with consistent credit quarter corporate had that forward, first across it’s which well that book. B and that was particularly as the to the to X are originating volatility going especially strong across and certainly we

tiered prudent X, But provision our always draw I being to conservative our forward. methodologies. as continue on comment will We and overall been continue the we to stage will reserves as we’ve measure your see as an on the a attention we feel can loans as more in appropriately that going robust

Sohrab Movahedi

to different footprint Daniel at your to I a a cycles point? thought Is basis if I should least that supposition of geographic follow-up, your have on mean more can multitude the relative in would and economic moderate. my of I the fair pure be just business exposure with jurisdiction, volatility

Daniel Moore

think will factors. be it a of number I by Well driven

would of course IFRS will that economic portfolio. driven stage X, include vis-à-vis a But be perspective business is, sort So diversity this of go-forward and in diversity The the passionate it we that our of of both strategy. very diversity our of a and we overall and performance are the be factors be IFRS and our is that factors; comment volatility from do the to It’s have our run is away those overall an about generally. we evolves our that the model. that expectation think strength and X platform a by that strength variety growth long strength something from would that X of platform X

Sohrab Movahedi

what your the you’re you going any differently business see volatility So the in you’re Is saying? run that? to manage not undue that way if

Daniel Moore

correct. is That

credit in on on that always robust focus sets our and the had. of this we measures continue metrics will We (inaudible)

Operator

Credit Stogdill Suisse. Your of next comes Please go question ahead. Nick from

Nick Stogdill

the X, XXXX in benefit a X Colombian is better on XX we follow-up X X get market? meaning just First in here, and the benefit stage loans quick IFRS see Colombia that on from more driving X could under on stage the can improvement and and of any million Colombia improvement

Daniel Moore

had that’s declining XX of and a upgrade we delinquencies, our XX pleased to basis tend the energy performance quarter-over-quarter we are the [advantages] and with the points turnaround paying dividends, the strategies points course basis mention lot and in very our people to of overall not our over we attention throughout to of So quarter-over-quarter has year. improvement technology, past our know quarters. Colombian been several portfolio, and And as you

So from cautiously not effect a forward. have we go-forward – vis-à-vis but perspective, outlook given we we and the cautious I I stable that that elections have outlook, think I agree a have with would am have seasonality Nacho up, would effects in going that sure, we would coming we Presidential a Colombia

Sean McGuckin

X so in I’ll the just on X slide quality. add, not we the looking stage But is you’re XX, improvement if at stage improvement seeing or and Colombia the X. much performance credit are primarily

Nick Stogdill

this if environment So and performance stage see market, economic better improves in the I could guess? maybe Colombia, we that X X year in

Nacho Deschamps

that Other’s would correct. equal being be

Nick Stogdill

My business James second for in question Canada. just on quickly banking

business Your loan sense growth accelerate driving give us is which are and regions growth? focus industries a on to specific Can business. the acceleration what I continues in just for know you a the

James O’Sullivan

to. Sure, happy

a quarter We was it got very to in business. strong this the year. on commercial and the So strong start momentum

Western push about if before at in particular. big you said it geographically, we’ve had I’ve So [DC] think a

in is agriculture participant we the driving about think doing be that. customers working But part you and significant growth business again as development succession wanted of to commercial we’re business we’re estate and it If and more well. a sector the needs, the with plant portfolio all is in more that broadly, real spectrally, investments capital there’s growth in there’s is the and a there equipment,

fairly it’s but would is diversified, to [DC] a think we’re to that I and I pick had on. it pick sector Ag if had if I be something So a well region focused

well. that So assets, year-over-year deposits, XX% growth business in XX% year-over-year in is doing very

Operator

Chan from go of ahead is question Please Genuity. Canaccord next Scott Your

Scott Chan

institutional, XX look assets, that worth. is transaction both. you Jarislowsky transaction, of client it If JF high XX% net XX% more of the I to What the billion segment of at or (inaudible)

Daniel Moore

Well mean and extends really customer to ultra-high believe Scott. segments I we penetrated this under it’s where both for two our sure we’re network. in institutional reach

process a So we will we disciplined investment and we’ll goal build as a multi-asset and platform here Brian platform footprint. use carry as across a that our it this think investment be overtime would said, right can really that or class to our and has firm build

Scott Chan

the Canada put is And JF internationally? the overtime retail products potential or side to in on

Daniel Moore

making There and decisions to new those best an is, to about thoughtful we’re thoughtfully with it. brand, iconic to to want work to we’re going think leverage that want we but in carefully. going and about It’s how be brand our partners

Operator

Markets. ahead. Your Mike go Please next question comes Macquarie from Capital of Rizvanovic

Mike Rizvanovic

to specifically light slide would quick International a very your your around range growth, results clearly past XX in Alliance, level, that in the how start to you what one would be at common get of anything strong just happen concerns before conducive growth Nacho, to been low as been to just has not have just GDP just growth that in region. your GDP high be decelerating go and to back to strong business May growth as in the for your before would wondering maybe in robust go very lately. theory Pacific been and and in I the wanted would would its the to have the tested, have think that view some GDP X% have growth banking but X% resilience businesses to I’m it be looking

Nacho Deschamps

I factor is Alliance very the Banking I our is of think low Pacific credit faced banking the have the penetration level that outlook countries. positively and for International across

there’s see average. the in in consistent banking and that So see Pacific a in of factor or the and always lending in countries been has very we We times decade factor. growth been past two Alliance a three general of

as that in now in for the news mentioned is four improvement you the outlook for countries So are we showing Pacific Alliance the GDP XXXX. good growth right an

would I because resilient So quite penetration. credit of this bonus it’s say banking low and of

Mike Rizvanovic

say the not better if that you GDP that much then correlation high. necessarily it growth, the is do get to to upside, And fair is

You growth. just mentioned GDP the times three

range, get is you to maybe as back to see quite X% Chile the not X% upside fair do to that if that is significant. it say So

Nacho Deschamps

It’s still a factor.

strengthening of GDP lot seeing So what for Chile, are of the business that connectivity I of say we a example, the is more economy, of has across in confidence. case that the course growth would

say our is commercial quite dynamic factor it affects So that we our in would performance. coming business positively I and years be But to the Chile. expect would in corporate a

Operator

Your Eight of comes Theriault Please ahead. go question Steve next from Capital.

Steve Theriault

at or one of featured lower forward should me, at gains some that any the about is one that for long this Sean IFRS back going there particular of any and years on if get least run in least last that wondering anything I’m year investment go-forward at, we we’ve color securities could in X from quick implications? XXXX think your or seen going rate then seen gains so four, How account we’ve Just a can the peers number if that, related. three on we a as

Sean McGuckin

the we’ve than I lower double all rate the think Yeah, past. days seen credit of that past gains expect have they in run we at that some in

IFRS main and of One is an have portfolio. investment we Under X. reasons equity X, the IFRS

unrealized If and gains P&L. you you to P&L, to to want to realized to go gains the have take also

our to So we’re on being volatility very cautious the earnings.

would forward, to we’ve we gains these we as in what treasury So lower past. seen we levels But we the equity debt expect running closer still than will portfolios. would gains security our overall but expect going we manage periodic have

Operator

next comes of Sohrab from Capital question Markets. BMO Movahedi Your

Sohrab Movahedi

you just the XXXX reconfirm ago. that about? in a Sean Do still the million originally through XXX the restructuring you from had talked to years or come outperform to initiatives savings that couple expected wanted so expect started were of

Sean McGuckin

we million standard XXXX. we expect beyond additional in of that. original and program definitely had to signaled the of a savings Most XXX ahead XXXX, track target We’ve

still we’re next couple the continue our So expense program base. for We then XX% this only base. we’re having and much to on broader still XX% of some. years will And of think

our for million year plan than be XXX our to that as this we’ve higher would expect we XXXX. signaled definitely yeah, the So savings

Sohrab Movahedi

you. Thank

Sean McGuckin

May you our Alright, QX thank to Again you We for I in Thank that’s results. believe call. us with talking last the call. to look again on you. the forward joining

The Bank of Nova Scotia (BNS) 27 Feb 182018 Q1 Earnings call transcript