Scotiabank Trinidad and Tobago : 06 Jun 2023 – Scotiabank Trinidad and Tobago Limited – Unaudited Financial Statements for the period ended April 30th, 2023

Media Release

For the Quarter ended 30 April 2023

For further information, contact: Adrian Lezama, AGM Finance. Email: [e-mail]

Scotiabank Reports Second Quarter Results

SECOND QUARTER HIGHLIGHTS

SIX MONTHS ENDED 30 APRIL 2023

SIX MONTHS ENDED 30 APRIL 2022

Profit After Taxation

Dividends per share

Earnings per share

Return on Equity

Return on Assets

$344 million	$356 million
140c	130c
195c	202c
15.9%	16.8%
2.4%	2.6%

Scotiabank Trinidad and Tobago Limited (The	Our award-winning digital transformation continues
Group) realized Profit After Taxation of $344 million	to strengthen our customer relationships through
for the six months ended 30 April 2023, compared	new tools and advancements that help them conduct
to $356 million in the same period last year. Return	their business faster, easier and more securely. We are
on Equity was 16.8%, compared to 15.9% and Return	pleased to announce, in respect of our Scotia Access
on Assets was 2.6%, compared to 2.4% over the	customers, the launch of new tools, offering dedicated
same comparative period. Notwithstanding the lower	support at the touch of a button through the Scotia
profitability, we have announced an improved return	App. We are first to the local market with this digital
to our shareholders with year-to-date				functionality, enabling our Scotia
dividends of 140c, compared to 130c	❝ We see ourselves	Access customers to have instant
paid in 2022. Commenting on the	messaging, voice and video
results, Managing Director of Scotiabank	as an important part	calling with their designated
Trinidad and Tobago Limited, Gayle	of the economic and	advisors within our secured
Pazos remarked:	banking platform.
	social fabric of the	Our customers continue to
"Despite inflationary pressures impacting	communities in which	embrace our digital platforms
our expense profile, I am pleased with the	we operate...	❝	with a record digital adoption of
Group's core performance. Operational	51.7%, and digital transactions
revenue continues to improve, with Net				stood at 2.4 million, an increase
Interest Income improving by 16% year				of 20% year over year.
over year and 4% over the last quarter. Retail and
Commercial loans collectively grew by $1.5 billion or	We see ourselves as an important part of the economic
9%, demonstrating the strength of our business lines,	and social fabric of the communities in which we operate
the confidence that our customers continue to place in	and we take our responsibility seriously. As part of our
us and our commitment to our market.		Environmental, Social and Governance (ESG) strategy,
		our aim is to help educate the public and our employees

Media Release

For the Quarter ended 30 April 2023

on some of the most pressing environmental issues we face and raise awareness of the opportunities that exist in our day-to-day lives to make more sustainable choices. As part of our commitment for Earth Day 2023, Scotiabank, together with our partners and our employees, led seedling distribution drives in local communities, making a positive contribution to food sustainability and carbon capture.

In closing, I would like to thank our team for their continued support and contribution during the last quarter. Your dedication and commitment are the foundation of the continued success of our Bank.

GROUP FINANCIAL PERFORMANCE

Revenue

Total Revenue, comprising of Net Interest Income and Other Income, was $974 million for the period ended 30 April 2023, an increase of $22 million or 2% over the prior year. Net Interest Income for the period was $695 million, an increase of $98 million or 16%, driven by growth in Loans to retail and corporate/commercial customers combined with improved yields on the Group's investment portfolio.

REVENUE (TT$MM)

				+2% Y/Y
+16% Y/Y				974	952
		-21%Y/Y
695
596		280	356
NET INTEREST INCOME	OTHER INCOME	TOTAL REVENUE
30 April 2023	30 April 2022

For the six months ended 30 April 2023, Other Income of $280 million decreased by $76 million compared to 2022 primarily due to lower trading revenues.

Other Income remains an important component of our profitability and we have seen partial offsetting growth in key segments such as Insurance and Wealth as well as activity-based revenues such as Card Revenues.

Non-Interest Expenses and Operating Efficiency Total Non-InterestExpenses for the period ended 30 April 2023 was $394 million, higher by $34 million or 9% when compared to the same period in 2022. Consistent with the challenges being faced throughout the global and local economies, we continue to be challenged by rising price inflation and its impact on direct and activity-basedcosts. Managing operational efficiency remains a strategic priority, and our productivity ratio of 40.5% as at 30 April 2023 remains the lowest within the local banking sector.

NON-INTEREST EXPENSES AND

PRODUCTIVITY

40.5% 37.9%

394

361

		30 April 2023		30 April 2022
		Productivity		Non-Interest Expenses

Credit Quality

Net impairment losses on financial assets for the quarter ending 30 April 2023 were recorded at $57 million, an increase of $12 million or 26% over the prior year, which is consistent with the growth in our

NET IMPAIRMENT LOSSES ON FINANCIAL

ASSETS TT $ 'MM

	+26% Y/Y
57	45
30 April 2023	30 April 2022

Media Release

For the Quarter ended 30 April 2023

loan portfolio. Our credit quality has improved with the ratio of non-performing loans as a percentage of gross loans, improving to 1.79% as of 30 April 2023 from 1.86% in the prior year as a result of improved delinquency within our loan portifolio.

Balance Sheet

Total Assets were $28.8 billion as at 30 April 2023, an increase of $856 million or 3%, compared to the prior year. Loans to Customers, the Bank's largest interest earning asset, was $18.2 billion as at 30 April 2023, an increase of $1.5 billion or 9%. This growth occurred in all segments in which we operate and is indicative of the continued economic recovery that we are seeing in the local economy.

Investment securities and Treasury Bills stood at $6.3 billion as at 30 April 2023, a decrease of $677 million when compared to 30 April 2022. We continue to align our investment strategy with current conditions, with funds channelled to higher-earning assets with the positive impact of rising USD interest rates realising higher investment income.

LOANS AND DEPOSITS Y/Y COMPARISON (TT$BN)
		+2% Y/Y
+9% Y/Y
18.2	16.7	21.3	20.9

	LOANS TO CUSTOMERS	DEPOSITS FROM CUSTOMERS
	30 April 2023		30 April 2022

Total Liabilities increased by $785 million to $24.4 billion or 3% over the same comparable period in 2022, mainly arising from an increase in Deposits from Customers of $346 million or 2% to $21.3 billion.

The continued economic growth, coupled with our focus on attracting core deposits from both the retail and corporate/commercial customers, continue to provide a steady source of funding to continue our credit expansion.

Total Equity

Total Equity closed the period at $4.4 billion, an increase of $71 million or 2% when compared to the balance as at 30 April 2022. The Bank's capital adequacy ratio stood at 17.34% as at 30 April 2023, which continues to be significantly above the minimum capital adequacy ratio under new BASEL II regulations.

Wealth	CAPITAL ADEQUACY

17.34%	17.50%
	Minimum
	ratio: 10.0%
30 April 2023	30 April 2022

Mutual Funds Under Management have seen good growth over the last year, registering an increase of $251 million or 21% to close at $1.5 billion as at 30 April 2023. The most significant area of growth has been in our TTD Short-Term Income Fund, which increased by $356 million since launch as our customers continue to seek a stable investment alternative in the current investment climate.

MUTUAL FUNDS UNDER

MANAGEMENT (TT$MM)

+21%
1,462	1,211

MUTUAL FUND AUM

30 April 2023		30 April 2022

Media Release

For the Quarter ended 30 April 2023

Insurance

Our Insurance subsidiary continues to be an integral part of the Group, representing 16% of NIAT.

Total Gross Premiums increased by $10 million or 4%, whilst Policyholder Funds increased by $85 million or 5% over the prior year. With the launch of new insurance products in 2022 combined with our stable returns, our products continue to offer enhanced value to our customers as we seek to deepen our relationships.

POLICYHOLDER'S FUND Y/Y	INSURANCE GROSS
COMPARISON (TT$'BN)	PREMIUMS

RETURN ON EQUITY

-85 bps Y/Y
15.93%	16.79%

DIVIDEND YIELD

	30 April 2023		30 April 2022

RETURN ON ASSETS

-17 bps Y/Y
2.44%	2.61%

RETURN ON ASSETS

30 April 2023		30 April 2022

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

+5%Y/Y
1.79	1.71

GROSS PREMIUMS

30 April 2023		30 April 2022

	+4%
239	229

GROSS PREMIUMS

30 April 2023		30 April 2022

Purpose is embedded in Scotiabank's DNA - we're here for every future, to help our customers, colleagues, shareholders and communities thrive.

Across all levels of the organization, we are leading important work to create a more sustainable and inclusive world through the Bank's ESG efforts.

Dividends and Share Price

We continue to provide a very healthy return and capital appreciation for our shareholders. We have declared total dividends of 140c for the year thus far, an 8% increase over the prior year's dividend of 130c per share. Our dividend payout ratio continues to be healthy at 72%, higher than the ratio for the same period last year of 64% with an improved dividend yield of 3.67%.

DIVIDEND YIELD AND	DIVIDEND PAYOUT RATIO
SHARE PRICE

Environmental Action

• We continue to work with partners and our employees, supporting initiatives that promote sustainable practices and a reduction in our carbon footprint.
• Our employees led a community seedling distribution drive in Lowlands, Tobago with partner, the SURE Foundation for Earth Day. Through this effort, 50,000 seedlings and 100 fruit trees were distributed.

SBTT $77.01 $80.66

SHARE

PRICE

3.67%

3.25%

DIVIDEND YIELD

30 April 2023		30 April 2022

72%	64%

PAY OUT RATIO

30 April 2023		30 April 2022

Return on Equity and Return on Assets

Return on Equity of 15.93% compared to 16.79% and Return on Assets of 2.44% compared to 2.61%. These ratios continue to be amongst the industry leaders in the local banking sector.

The Trinidad & Tobago Cancer Society was the beneficiary of $100,000 from the Scotiabank Charity Golf Tournament.

Media Release

For the Quarter ended 30 April 2023

• Globally, we announced acceptance of grant submissions for our Net-Zero Research Fund. Not-for-profit and charitable organizations developing research and opportunities to decarbonize key sectors of our economy can submit their proposals for funding.

Social Impact

• In 2023, our community investments have benefitted 22,188 individuals and 15,663 youths through working with 16 NGOs.
• We celebrate the successes of our national U15 cricket team and junior track and field athletes who represented Trinidad and Tobago at the recently concluded CWI Rising Stars Tournament and Carifta Games. The national U15 team was selected from the Scotiabank NextGen U15 Cricket Programme and eight of the 10 recipients of the Scotiabank/NAATT
  Deon Lendore Bursary Programme made it to the national team at Carifta Games 2023.

St. James Police Youth Club members participate in the Youth Carpentry Training Programme facilitated by Habitat for Humanity and sponsored by Scotiabank.

• We have partnered with Habitat for Humanity for youth skills training programme for young people aged 17-24 years. Through Habitat's partnerships with Police Youth Clubs nationwide, participants are furthering their skills in Construction Technology and Youth Carpentry Training, as well as Financial Literacy and Credit Management.
• Students at St. Mary's Mucurapo Boys' and Girls' R.C. Primary Schools are now benefiting from new steelpans donated by the Scotiabank

Students of Mucurapo Boys' R.C. play a few notes on the steelpans donated by the Scotiabank Foundation.

Foundation through United Way's Building Bridges to Success Programme.

• The TT Cancer Society was the beneficiary of our Charity Golf Tournament. Funds will be used towards providing cancer education and screening to communities across the country.

Inclusive Society

• Employees continue to participate in Sign Language Training to enable them to provide an inclusive customer experience. We remain the only bank with front line branch employees trained in sign language.

Governance & Leadership

• Effective risk management is a critical element of our governance approach. We have a strong, disciplined risk culture where managing risk is a responsibility shared by all Bank employees. Together, our strong risk culture, commitment to ethical and responsible business conduct, and continued enhancement of our compliance practices allow us to ensure the highest degree of integrity while keeping the Bank and our customers safe.
• All employees have completed their Risk Culture Attestation and Mandatory Learning to date.