Scotiabank Trinidad and Tobago : 15 Dec 2022 – Scotiabank Trinidad and Tobago Limited – Unaudited Financial Results for the year ended October 31, 2022

Media Release

For the year ended 31 October 2022

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

Scotiabank reports annual profits of $684 million

FOURTH QUARTER HIGHLIGHTS

YEAR ENDED 31 OCTOBER 2022

YEAR ENDED 31 OCTOBER 2021

Income after Taxation

Dividends per share

Earnings per share

Return on Equity

Return on Assets

$684 million	$604 million
330c	350c
388c	342c
16.0%	14.3%
2.5%	2.2%

Scotiabank Trinidad and Tobago Limited (The	credit quality. Our total deposit base has grown by
Group) realized Income after Tax of $684 million	$650 million or 3%, underscoring our desire to deepen
for the year ended 31 October 2022, an increase	relationships across all customer segments.
of $80 million or 13% over the same period ended
31 October 2021. Our improvement over the prior	We are proud to announce that we have been awarded
year was driven by growth in core operating revenue,	the prestigious Brandon Hall Gold Award 2022 for Best
increases in customer loans and overall banking	Advance in Employee Engagement. This was due to the
activity. This improvement in profitability has resulted	efforts of our senior management team, focusing on
in an increased Return on Equity from				programs in support of improving
14.34% in 2021 to 15.96% in 2022 and an	As we approach	work / life balance, building
increase in Return on Assets from 2.21%	strong internal connections while
in 2021 to 2.48% in 2022.	❝a new fiscal year,	promoting diversity, equity and
Commenting on the results, Managing	I am excited		inclusion.
about the journey
Director of Scotiabank Trinidad and	As we approach a new fiscal year,
Tobago Limited, Gayle Pazos, remarked:	ahead with		I am excited about the journey
	our customers.	❝	ahead with our customers. Our
"I am pleased to announce that	digital transformation over the
Scotiabank delivered strong financial			years has resulted in significant
results in 2022, with year over year				improvements, enhancing our
profitability growth of 13%. One of the main highlights	customers' experience and allowing greater ease of
is the overall loan growth of 10%, with solid growth	access to our services. Customers continue to embrace
from our business lines - Retail Banking at 9% and	our Digital Infrastructure, with non-branch transactions
Commercial Banking at 16%. We achieved loan growth	increasing by 1.1 million or 34% with a record digital
of $1.6 billion, one of the highest annual growth	adoption rate of 51%.
rates we have ever achieved, while maintaining good

Media Release

For the Year ended 31 October 2022

We are encouraged yet cautious on the increased economic activity buoyed by higher energy commodity prices; however this will be tempered by continued inflationary pressures and supply chain issues experienced globally and locally.

In closing, I would like to take this opportunity to thank our shareholders and customers for your loyalty and the confidence you continue to show in us. I would also like to commend our team of skilled and dedicated employees for the commitment and execution shown throughout the year."

GROUP FINANCIAL PERFORMANCE

Revenue

Total Revenue, comprising Net Interest Income and Other Income was $1.9 billion for the period ended

31 October 2022, an increase of $168 million or 10% over last year. Net Interest Income for the period was $1.2 billion, $27 million or 2% higher, driven by increased loan volumes combined with market yield increases for our security portfolios. Core banking revenues continue to recover, driving Other Income growth of $141 million or 28% to $652 million in 2022 with increased activity in both retail and commercial segments.

REVENUE (TT$MM)

					+10% Y/Y
+2% Y/Y					1,898	1,730
1,246	1,219		+28% Y/Y
			652	511
NET INTEREST INCOME	OTHER INCOME	TOTAL REVENUE
31 October 2022	31 October 2021

Non-interest expenses and operating efficiency In the context of continued rising price inflation, managing The Group's operational efficiency remains a strategic priority. We continue to embrace and invest in our digital platforms to enhance our customer experience. These improvements have resulted in our productivity ratio improving to 39%, which is the lowest ever in our operating history. Non-InterestExpenses have increased by $35MM or 5%, driven mainly by business volume-relatedexpansion and inflationary impacts, but we continue to realize expense savings through our various digital and infrastructure enhancements.

NON-INTEREST EXPENSES AND

PRODUCTIVITY

38.9% 40.6%

737

702

	31 October 2022		31 October 2021

Productivity

Credit Quality

Net impairment losses on financial assets for the period ending 31 October 2022 were recorded at $110 million, an increase of $2 million or 1% over the prior year. We continue to adopt an appropriate credit risk methodology that takes into consideration

EXPECTED CREDIT LOSSES AND

CREDIT QUALITY

1.98% 2.29%

110	109

31 October 2022		31 October 2021

Credit Quality

(Non-Performing Loans/Gross Loans)

Media Release

For the Year ended 31 October 2022

various factors such as the geopolitical uncertainty and 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 2.29% in 2021 to 1.98% in 2022, our best position since 2015.

Balance sheet

Total Assets were $28 billion as at 31 October 2022, increasing by $900 million or 3% compared to the prior year. Loans to Customers, the Bank's largest interest earning asset, increased by $1.6 billion or 10% compared to 31 October 2021. This has led to an improvement in our total Loans Market share, increasing from 21% in 2021 to 22% in 2022.

LOANS AND DEPOSITS (TT$BN)

	+3% Y/Y
+10% Y/Y
17.3	20.9	20.2
15.7

LOANS TO CUSTOMERS	DEPOSITS FROM CUSTOMERS
31 October 2022		31 October 2021

Our performance was driven by recovery in economic activity resulting in increased consumer demand and increased commercial activity.

Investment securities and Treasury Bills stood at $6.9 billion as at 31 October 2022, an increase of $190 million over the prior year. We continue to benefit from rising USD interest rates, positively impacting our

POLICYHOLDERS' FUND (TT$BN)

+6% Y/Y
1.75	1.65
31 October 2022	31 October 2021

investment income, and we will continue to monitor this for further opportunities to maximize our return on our investment portfolio while maintaining sufficient liquidity to meet our funding needs.

As at 31 October 2022, Total Liabilities increased by $817 million to $24 billion or 4% over last year. This increase was due to an increase in Deposits from Customers of $650 million or 3% to $21 billion and an increase in Policyholder Funds of $95 million or 6%. The growth in our insurance segment reaffirms customers' continued confidence in our brand, coupled with the deepening of relationships with our customers as we offer products to suit different needs.

Shareholders' Equity

Total Shareholders' Equity closed the period at $4.3 billion, an increase of $83 million or 2% when compared to the balance as at 31 October 2021. The

CAPITAL ADEQUACY

17.5%	18.1%
	Minimum
	ratio: 10.0%
31 October 2022	31 October 2021

Bank's capital adequacy ratio stood at 17.5% as at

31 October 2022, which continues to be significantly above the minimum capital adequacy ratio under new BASEL II regulations of 10%.

Wealth

Mutual Funds Under Management have seen steady growth over the last year, surpassing $1 billion during 2022 and ending the quarter at $1.3 billion as at 31 October 2022, an increase of $333 million or 33%. Our recently introduced Short-Term Income Fund continues to provide a viable alternative to placing funds, surpassing $200 million in just over one year of being launched.

Media Release

For the Year ended 31 October 2022

MUTUAL FUNDS UNDER

MANAGEMENT (TT$MM)

+33% Y/Y
1,328	995

MUTUAL FUND AUM

31 October 2022		31 October 2021

Insurance

Our Insurance subsidiary continues to be an integral part of The Group, representing 15% of NIAT. Total Gross Premiums increased by $30 million or 7%, driven by our commitment to provide our customers

INSURANCE GROSS

PREMIUMS (TT$MM)

+7%
453	423

We continue to provide a very healthy return and capital appreciation for our shareholders. We have declared total dividends of 100c for the quarter, bringing the total dividends for 2022 to 330c per share. This represents an increase of 25% over the same

DIVIDENDS PAID (TT$'¢)

Special Dividend 85c in 2021 excluded

+25% Y/Y
3.30	2.65
31 October 2022	31 October 2021

period last year, excluding the special dividend of 85c in prior year. Our dividend payout ratio, excluding the 2022 special dividend, increased from 77% to 85%, resulting in a healthy dividend yield of 4.2%.

Return on Equity and Return on Assets

RETURN ON EQUITY

RETURN ON ASSETS

GROSS PREMIUMS

31 October 2022		31 October 2021

with affordable, convenient insurance solutions for their everyday needs. In line with this commitment, we launched three (3) new products in 2022 - Scotia Elevate, Scotia Legacy and Scotia Platinum, all with

+161 bps Y/Y
16.0%
	14.3%
31 October 2022	31 October 2021

+27 bps Y/Y
2.5%
	2.2%
31 October 2022	31 October 2021

unique features aligned to our customers' needs.

Dividends

DIVIDEND YIELD	DIVIDEND PAYOUT RATIO
Excluding 2021 special dividend of 85c	Excluding 2021 special dividend of 85c

Improvement in profitability has led to increased return on equity and return on assets. Return on Equity increased from 14.3%% to 16.0% whilst Return on Assets increased from 2.2% to 2.5%, reflecting the effectiveness of The Group's strategies in improving profitability.

SHARE $77.80	$62.50
PRICE

4.24%	4.24%
31 October 2022	31 October 2021

85%	77%
31 October 2022	31 October 2021

ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG)

With our purpose as our guide - for every future - Scotiabank forms an important part of the social and economic fabric of the places in which we operate. It is a role and responsibility that is not taken

Media Release

For the Year ended 31 October 2022

lightly. Our ESG strategy is supported by four pillars: Environmental Action, Social Impact, Inclusive Society and Leadership & Governance. These form the lens through which we develop, implement and invest

in initiatives to maximize our positive impact on the world.

This past quarter, we have made the following progress under our ESG agenda:

Our continued partnership with the SURE Foundation has seen a total of 220,000 seedlings and 500 fruit trees distributed to farmers, households, orphanages and communities across the country.

Environmental Action

• Globally, we have expanded the Net Zero Research Fund to $10 Million (CAD) to advance partnerships with leading think-tanks and academic institutions that are supporting key sectors in their efforts to decarbonize. This is available across the Bank's footprint, including Trinidad & Tobago.
• We introduced Electric Vehicle (EV) Financing for established brands, demonstrating our support towards renewable and clean energy.
• We leverage our global expertise to offer client best-in-class structuring and execution of sustainable finance transactions, as well as tailored ESG and sustainable finance advice aligned with business strategy.
• Ongoing Risk/Lending policy reviews on factoring climate-related risks into financial metrics for transactions.
• Our continued partnership with the SURE Foundation has seen a total of 220,000 seedlings and 500 fruit trees distributed to

farmers, households, orphanages and communities across the country, promoting food and environmental sustainability.

Social Impact

• Partnership established with the National Association for Athletics Administrators of Trinidad and Tobago (NAAATT) to provide 10 junior track and field athletes with funding, to the tune of $10,000 each, providing socio-economic support to help mitigate challenges that these athletes may face.
• After a 2-year hiatus, we saw the return of the Scotiabank Schools Table Tennis Tournament, with over 200 youths participating in individual and team categories.
• The newly-formed Beetham Vibrations Steel Orchestra, an initiative of the Rotary Club of POS, received a $100,000 boost from the Scotiabank Foundation, to fund equipment and tutoring.
• We continued to raise awareness and funds for breast cancer through sharing stories of cancer patients/survivors to help encourage others to get screened early. To date, we have helped 21,000 women with access to free screening services.
• Overall, this year, our community initiatives have benefitted 27,673 individuals, and 17,265 youths through working with 85 charities, schools and community groups.

The newly-formed Beetham Vibrations Steel Orchestra, an initiative of the Rotary Club of POS, received a $100,000 boost from the Scotiabank Foundation, to fund equipment and tutoring.