Scotiabank Trinidad and Tobago : 07 Mar 2023 – Scotiabank Trinidad and Tobago Limited – Unaudited Financial Statements for the period ended January 31st, 2023

Media Release

For the Quarter ended 31 January, 2023

For further information, contact: Adrian Lezama, AGM Finance, Tel: [phone] ext. 2300

Scotiabank Reports First Quarter Results

FIRST QUARTER HIGHLIGHTS

THREE MONTHS ENDED 31 JANUARY 2023

THREE MONTHS ENDED 31 JANUARY 2022

Income after Taxation

Dividends per share

Earnings per share

Return on equity

Return on assets

$189 million	$185 million
70.0c	65.0c
107.3c	105.2c
17.35%	17.27%
2.63%	2.68%

Scotiabank Trinidad and Tobago Limited (The	grew by $1.5 billion or 9%, with $501 million in the last
Group) realised Income after Tax of $189 million for	quarter. This growth has fuelled total revenue of $498
the quarter ended 31 January 2023, an increase of $4	million, an increase of 5% over the same period in 2022,
million or 2% over the comparable 2022 period.	surpassing pre-pandemic levels. This loan enhancement
The improvement in profitability			is supported by increase in deposits of $1.1 billion or 5%,
			highlighting the trust and confidence our
has resulted in an increased Return	❝	We are proud to	customers continue to have in us as their
on Equity from 17.27% to 17.35%	financial partner.
as at 31 January 2023. Return on	announce that, this
assets decreased slightly from		quarter, we were	We are proud to announce that, this
2.68% to 2.63% over the same		quarter, we were awarded Bank of the
awarded Bank of the
comparative period due to higher	Year 2022 by The Banker magazine.
asset growth. The increase in		Year 2022 by The	This was awarded to us in recognition
income after taxation was driven		Banker magazine. ❝	of our successful digital strategy,
by strong growth in loans to our		including, among other things, our Scotia
customers across all segments.				Caribbean App enhancements, and the
			increased engagement of our customers on our digital
Commenting on the results, Managing Director of	platforms. Digital transactions for the quarter ending
Scotiabank Trinidad and Tobago Limited, Gayle Pazos,	31 January 2023 stood at 1.4 million, an increase over
remarked:			last year, with a digital adoption rate of 51.1%.

"I am pleased to announce that our first quarter is off to a good start, demonstrating the strength of our retail and commercial business lines. Loans to Customers

In closing, I would like to thank our customers and employees for their contribution and look forward to another exciting year for us all."

Media Release

For the Quarter ended 31 January, 2023

GROUP FINANCIAL PERFORMANCE

NON-INTEREST EXPENSES AND PRODUCTIVITY

Revenue

Total Revenue, comprising Net Interest Income and Other Income, was $498 million for the period ended 31 January 2023, an increase of $23 million or 5% over the prior year. Net Interest Income for the period was $340 million, an increase of $41 million or

188

37.7%

31 January 2023

173

36.5%

31 January 2022

14%, driven by growth in Loans to retail and corporate/commercial customers combined with higher yields on The Group's investment portfolio.

REVENUE (TT$MM)

					+5% Y/Y
+14% Y/Y					498	475
340	300		-10%Y/Y
			157	175
NET INTEREST INCOME	OTHER INCOME	TOTAL REVENUE
31 January 2023	31 January 2022

For the quarter ended 31 January 2023, Other Income of $157 million decreased by $18 million

NON-INTEREST EXPENSES

PRODUCTIVITY

Credit Quality

Net impairment losses on financial assets for the quarter ending 31 January 2023 were $23 million, an increase of $6 million or 33% over the prior year. We continue to adopt an appropriate credit risk methodology that takes into consideration various factors such as the geopolitical uncertainty and its potential to impact the local economy. Our credit quality has improved with the ratio of non-performing loans as a percentage of gross loans, reducing from 1.90% as at 31 January 2022 to 1.84% as at 31 January 2023.

EXPECTED CREDIT LOSSES AND

CREDIT QUALITY

when compared to 2022. Notwithstanding the decrease during the first quarter, Other Income remains an important component of our financial performance and we continue to see increases in key lines such as credit card revenue and other activity-based revenue lines.

23

1.84%

31 January 2023

17

1.90%

31 January 2022

Non-Interest Expenses and Operating Efficiency Total Non-InterestExpenses for the period ended 31 January 2023 was $188 million, an increase of $15 million when compared to the same period in 2022. We continue to be challenged by rising price inflation and its impact on expenditure. However, managing The Group's operational efficiency remains a strategic priority. Our productivity ratio of 37.7% as at 31 January 2023 remains the lowest within the domestic banking industry.

EXPECTED CREDIT LOSSES

CREDIT QUALITY (Non-Performing Loans/Gross Loans)

Balance Sheet

Total Assets were $29 billion as at 31 January 2023, an increase of $1.3 billion or 5% compared to the prior year. Loans to Customers, the Bank's largest interest earning asset, was $17.8 billion as at 31 January 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.

Media Release

For the Quarter ended 31 January, 2023

Investment securities and Treasury Bills stood at $6.4 billion as at 31 January 2023, a decrease of $399 million when compared to 31 January 2022. Despite the decline in balances, we realised increased investment income due to the positive impact of the rising USD interest rate environment.

LOANS AND DEPOSITS (TT$BN)

Wealth

Mutual Funds Under Management have seen stellar growth over the last year, registering an increase of $258 million or 22% to close at $1.4 billion as at 31 January 2023. The most significant area of growth has been in our TTD Short-Term Income Fund, which has grown by $356 million in just over 18 months.

	+5% Y/Y
+9% Y/Y	21.8	20.7
17.8
16.3

LOANS TO CUSTOMERS	DEPOSITS FROM CUSTOMERS
31 January 2023		31 January 2022

As at 31 January 2023, Total Liabilities increased by $1.3 billion to $24.7 billion or 5% over the same comparable period in 2022, mainly arising from an increase in Deposits from customers of $1.1 billion or 5% to $21.8 billion. The continued economic growth, coupled with our focus on attracting core deposits from both the retail and corporate/commercial customers, continues to provide a steady source of funding to continue our credit expansion.

Shareholders' Equity

Total Shareholders' Equity closed the period at $4.3 billion, an increase of $63 million or 1% when compared to the balance as at 31 January 2022. The Bank's capital adequacy ratio stood at 17.24% as at

31 January 2023, which continues to be significantly above the minimum capital adequacy ratio under new

MUTUAL FUNDS UNDER

MANAGEMENT (TT$MM)

+22% Y/Y
1,413	1,155

MUTUAL FUND AUM

	31 January 2023		31 January 2022

Insurance

Our Insurance subsidiary continues to be an integral part of The Group, representing 14% of NIAT. Total Gross Premiums increased by $5 million or 5%, whilst Policyholder Funds increased by $59 million or 3% over the prior year. In 2022, we successfully launched three new insurance products, which positively contributed to these increases and reaffirms our objective of seeking to deepen our relationships with our customers by offering products that suit their needs.

POLICYHOLDERS'	INSURANCE GROSS
FUND (TT$BN)	PREMIUMS (TT$MM)

BASEL II regulations of 10%.

CAPITAL ADEQUACY

17.24%	17.92%
	Minimum
	ratio: 10.0%
31 January 2023	31 January 2022

+3% Y/Y
1.77	1.71
31 January 2023
31 January 2022

+5%
122	117
31 January 2023
31 January 2022

Media Release

For the Quarter ended 31 January, 2023

Dividends and Share Price

We continue to provide very healthy returns and capital appreciation for our shareholders. We have declared total dividends of 70c per share for the quarter, an 8% increase over the prior year's first quarter dividend of 65c per share. Our dividend payout ratio continues to be healthy at 65% and our improved financial performance during 2022 has led to an 8% increase in our share price over the prior year. Our overall dividend yield remains consistent at 3.6%.

DIVIDEND YIELD	DIVIDEND PAYOUT RATIO

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

Scotiabank's approach to ESG focuses on four strategic pillars: Governance & Leadership, Social Impact, Environmental Action, and Inclusive Society.

We develop, implement, and invest in initiatives across these areas in order to maximise impact on our operations, our customers and the world around us, for every future.

Fiscal 2023 is off to a great start for us as we progress on our ESG agenda.

3.59%	3.61%
31 January 2023
31 January 2022

65%	62%
31 January 2023
31 January 2022

Governance & Leadership

• Robust governance and clear leadership are

essential for creating value, serving our customers

and achieving long-term performance.

• Employee engagement continues to be strong at

84%.

• We have been recognised, this quarter, for our

innovation and leadership in the local market by two

Return on Equity and Return on Assets Improvement in profitability has led to increased Return on Equity from 17.27% to 17.35%. Return on Assets, however, declined slightly to 2.63% due to higher asset growth, driven by strong loans to customer growth.

prestigious global institutions - Latin Finance and

The Banker, which have both named Scotiabank as

Trinidad and Tobago's Bank of the Year 2022.

Social Impact

• Our community investments this quarter have

benefitted 10,780 individuals and 5,588 youths

through working with 11 NGOs.

RETURN ON EQUITY

+8 bps Y/Y
17.35%	17.27%
31 January 2023
31 January 2022

RETURN ON ASSETS

-5 bps Y/Y
2.63%	2.68%
31 January 2023
31 January 2022

• To help provide relief to those adversely affected

by flooding throughout the country in November

2022, we provided financial support to the

Supermarkets Association of Trinidad and Tobago

(SATT) whose relief efforts were coordinated with

the Office of Disaster Preparedness and

Management (ODPM), municipal corporations and

various NGOs. In addition to food, basic medical

supplies, hygiene products detergents and

sanitizing products are being provided to impacted

households.

Media Release

For the Quarter ended 31 January, 2023

Environmental Action

• We have entered our third year of partnership with the SURE Foundation, distributing seedlings and trees to communities across the country, helping to encourage households to grow their own food, promoting sustainable livelihoods.

Young cricketers at the Launch of the Scotiabank NextGen Cricket Programme 2023.

• The 2023 edition of the Scotiabank NextGen
  Cricket Development Programme, which will benefit over 300 youths in Trinidad and Tobago, was launched in January. Our investment of $300,000 is geared towards helping young people to further refine their skills and expertise so they can continue to develop in the sport of cricket, as well as enhance their life and capacity building skills, preparing them for future success and boosting their economic resilience.

Employees help distribute seedlings in the community of Couva.

Inclusive Society

• Employees continue to participate in Sign
  Language Training to enable them to provide an inclusive customer experience.
• Further to the enhanced Parental Leave benefit introduced in 2022, the Paternity Leave Policy has been increased from four weeks to eight weeks.