Scotiabank's 2022 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 include 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
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 |
Fiscal 2022 Highlights on a Reported Basis | Fourth Quarter 2022 Highlights on a Reported Basis |
• Net income of | • Net income of |
• Earnings per share (diluted) of | • Earnings per share (diluted) of |
• Return on equity(1) of 14.8%, compared to 14.7% | • Return on equity of 11.9%, compared to 14.8% |
Fiscal 2022 Highlights on an Adjusted Basis(2) | Fourth Quarter 2022 Highlights on an Adjusted Basis(2) |
• Net income of | • Net income of |
• Earnings per share (diluted) of | • Earnings per share (diluted) of |
• Return on equity of 15.6%, compared to 15.0% | • Return on equity of 15.0%, compared to 15.6% |
Fiscal 2022 Performance versus Medium-Term Objectives | ||
The following table provides a summary of our 2022 performance against our medium-term financial objectives: | ||
Medium-Term Objectives | Fiscal 2022 Results | |
Reported | Adjusted(2) | |
Diluted earnings per share growth of 7%+ | 4.2 % | 8.0 % |
Return on equity of 14%+ | 14.8 % | 15.6 % |
Achieve positive operating leverage | Negative 2.4% | Negative 1.1% |
Maintain strong capital ratios | CET1 capital ratio(3) of 11.5% | N/A |
Reported net income for the fourth quarter ended
This quarter's net income included adjusting items of
Adjusted net income(2) was
Adjusted net income(2) for the fourth quarter ended
"This year, the Bank remained focused on leading through sound advice and delivering value to our customers, including launching the enhanced Scene+ loyalty program, which has since grown by more than one million new members and was further expanded with the addition of Empire Company Limited to the partnership. Our commitment to our customers has resulted in a number of prestigious recognitions, including Bank of the Year for
Despite the uncertain and volatile operating environment, each of the four business lines contributed strongly to our consolidated fiscal year performance reflecting the diversified earnings power of the Bank.
Canadian Banking generated adjusted earnings of
Global Wealth Management reported adjusted earnings of
Global Banking and Markets generated earnings of
International Banking delivered a strong rebound in adjusted earnings in 2022. Adjusted earnings of
For fiscal 2022, the Bank exceeded its medium-term profitability targets on an adjusted basis, in terms of earnings per share growth and return on equity metrics. With a Common Equity Tier 1 capital ratio of 11.5%, the Bank remains well capitalized to support its strategic growth plans and return capital to shareholders. The quarterly dividend remains unchanged at
This year, the Bank released its inaugural Net-Zero Pathways Report, which includes sector-specific decarbonization baselines and targets. The Bank has made significant progress in achieving its climate-related financing target, having mobilized a total of
"I am exceedingly proud of what our team of 90,000 Scotiabankers has accomplished over the past 10 years. We have made strategic investments to refocus and strengthen our footprint and position the Bank for continued success over the long term. The Bank is stronger, more diverse, and more inclusive than it has ever been. Simply put, our Bank is a different bank today—one well-placed to deliver consistent long-term growth, and to cultivate our world-class culture, now and into the future," continued
_________________________________________ |
(1) Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto. |
(2) Refer to Non-GAAP Measures section starting on page 22. |
(3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). |
Financial Highlights
As at and for the three months ended | As at and for the year ended | ||||||||
October 31 | October 31 | ||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||
Operating results ($ millions) | |||||||||
Net interest income | 4,622 | 4,676 | 4,217 | 18,115 | 16,961 | ||||
Non-interest income | 3,004 | 3,123 | 3,470 | 13,301 | 14,291 | ||||
Total revenue | 7,626 | 7,799 | 7,687 | 31,416 | 31,252 | ||||
Provision for credit losses | 529 | 412 | 168 | 1,382 | 1,808 | ||||
Non-interest expenses | 4,529 | 4,191 | 4,271 | 17,102 | 16,618 | ||||
Income tax expense | 475 | 602 | 689 | 2,758 | 2,871 | ||||
Net income | 2,093 | 2,594 | 2,559 | 10,174 | 9,955 | ||||
Net income attributable to common shareholders of the Bank | 1,949 | 2,504 | 2,411 | 9,656 | 9,391 | ||||
Operating performance | |||||||||
Basic earnings per share ($) | 1.64 | 2.10 | 1.98 | 8.05 | 7.74 | ||||
Diluted earnings per share ($) | 1.63 | 2.09 | 1.97 | 8.02 | 7.70 | ||||
Return on equity (%)(1) | 11.9 | 15.3 | 14.8 | 14.8 | 14.7 | ||||
Return on tangible common equity (%)(2) | 15.0 | 19.2 | 18.7 | 18.6 | 18.7 | ||||
Productivity ratio (%)(1) | 59.4 | 53.7 | 55.6 | 54.4 | 53.2 | ||||
Operating leverage (%)(1) | (2.4) | 1.1 | |||||||
Net interest margin (%)(2) | 2.18 | 2.22 | 2.17 | 2.20 | 2.23 | ||||
Financial position information ($ millions) | |||||||||
Cash and deposits with financial institutions | 65,895 | 67,715 | 86,323 | ||||||
Trading assets | 113,154 | 118,605 | 146,312 | ||||||
Loans | 744,987 | 713,378 | 636,986 | ||||||
Total assets | 1,349,418 | 1,292,102 | 1,184,844 | ||||||
Deposits | 916,181 | 879,582 | 797,259 | ||||||
Common equity | 65,150 | 65,043 | 64,750 | ||||||
Preferred shares and other equity instruments | 8,075 | 7,052 | 6,052 | ||||||
Assets under administration(1) | 641,636 | 630,087 | 652,924 | ||||||
Assets under management(1) | 311,099 | 319,612 | 345,762 | ||||||
Capital and liquidity measures | |||||||||
Common Equity Tier 1 (CET1) capital ratio (%)(3) | 11.5 | 11.4 | 12.3 | ||||||
Tier 1 capital ratio (%)(3) | 13.2 | 13.0 | 13.9 | ||||||
Total capital ratio (%)(3) | 15.3 | 15.0 | 15.9 | ||||||
Total loss absorbing capacity (TLAC) ratio (%)(4) | 27.4 | 28.4 | 27.8 | ||||||
Leverage ratio (%)(5) | 4.2 | 4.2 | 4.8 | ||||||
TLAC Leverage ratio (%)(4) | 8.8 | 9.3 | 9.6 | ||||||
Risk-weighted assets ($ millions)(3) | 462,448 | 452,800 | 416,105 | ||||||
Liquidity coverage ratio (LCR) (%)(6) | 119 | 122 | 124 | ||||||
Net stable funding ratio (NSFR) (%)(7) | 111 | 109 | 110 | ||||||
Credit quality | |||||||||
Net impaired loans ($ millions) | 3,151 | 2,695 | 2,801 | ||||||
Allowance for credit losses ($ millions)(8) | 5,499 | 5,295 | 5,731 | ||||||
Gross impaired loans as a % of loans and acceptances(1) | 0.62 | 0.58 | 0.67 | ||||||
Net impaired loans as a % of loans and acceptances(1) | 0.41 | 0.36 | 0.42 | ||||||
Provision for credit losses as a % of average net loans and acceptances(1)(9) | 0.28 | 0.22 | 0.10 | 0.19 | 0.29 | ||||
Provision for credit losses on impaired loans as a % of average net loans and acceptances(1)(9) | 0.26 | 0.21 | 0.31 | 0.24 | 0.53 | ||||
Net write-offs as a % of average net loans and acceptances(1) | 0.24 | 0.21 | 0.34 | 0.24 | 0.54 | ||||
Adjusted results(2) | |||||||||
Adjusted net income ($ millions) | 2,615 | 2,611 | 2,716 | 10,749 | 10,169 | ||||
Adjusted diluted earnings per share ($) | 2.06 | 2.10 | 2.10 | 8.50 | 7.87 | ||||
Adjusted return on equity (%) | 15.0 | 15.4 | 15.6 | 15.6 | 15.0 | ||||
Adjusted return on tangible common equity (%) | 18.7 | 19.2 | 19.6 | 19.5 | 19.0 | ||||
Adjusted productivity ratio (%) | 53.7 | 53.4 | 52.8 | 52.8 | 52.2 | ||||
Adjusted operating leverage (%) | (1.1) | 1.5 | |||||||
Common share information | |||||||||
Closing share price ($) (TSX) | 65.85 | 78.01 | 81.14 | ||||||
Shares outstanding (millions) | |||||||||
Average – Basic | 1,192 | 1,195 | 1,215 | 1,199 | 1,214 | ||||
Average – Diluted | 1,199 | 1,203 | 1,224 | 1,208 | 1,225 | ||||
End of period | 1,191 | 1,193 | 1,215 | ||||||
Dividends paid per share ($) | 1.03 | 1.03 | 0.90 | 4.06 | 3.60 | ||||
Dividend yield (%)(1) | 5.7 | 5.2 | 4.5 | 5.1 | 5.2 | ||||
Market capitalization ($ millions) (TSX) | 78,452 | 93,059 | 98,612 | ||||||
Book value per common share ($)(1) | 54.68 | 54.52 | 53.28 | ||||||
Market value to book value multiple(1) | 1.2 | 1.4 | 1.5 | ||||||
Price to earnings multiple (trailing 4 quarters)(1) | 8.2 | 9.3 | 10.5 | ||||||
Other information | |||||||||
Employees (full-time equivalent) | 90,979 | 90,978 | 89,488 | ||||||
Branches and offices | 2,384 | 2,392 | 2,518 |
(1) | Refer to page 133 of the Management's Discussion & Analysis in the Bank's 2022 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto. | ||||||||
(2) | Refer to Non-GAAP Measures section starting on page 22. | ||||||||
(3) | This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018). | ||||||||
(4) | This measure has been disclosed in this document in accordance with OSFI Guideline - Total Loss Absorbing Capacity (September 2018). | ||||||||
(5) | This measure has been disclosed in this document in accordance with OSFI Guideline - Leverage Requirements (November 2018). | ||||||||
(6) | This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015). | ||||||||
(7) | This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Net Stable Funding Ratio Disclosure Requirements (January 2021). | ||||||||
(8) | Includes allowance for credit losses on all financial assets - loans, acceptances, off-balance sheet exposures, debt securities, and deposits with financial institutions. | ||||||||
(9) | Includes provision for credit losses on certain financial assets - loans, acceptances, and off-balance sheet exposures. | ||||||||
Impact of Foreign Currency Translation
Average exchange rate | % Change | ||||||||||||
October 31, 2022 | October 31, 2022 | ||||||||||||
For the three months ended | 2022 | 2022 | 2021 | vs. | vs. October 31, 2021 | ||||||||
0.752 | 0.778 | 0.796 | (3.3) | % | (5.6) | % | |||||||
Mexican Peso/Canadian Dollar | 15.072 | 15.678 | 16.065 | (3.9) | % | (6.2) | % | ||||||
Peruvian Sol/Canadian Dollar | 2.942 | 2.957 | 3.239 | (0.5) | % | (9.2) | % | ||||||
Colombian Peso/Canadian Dollar | 3,381 | 3,200 | 3,043 | 5.7 | % | 11.1 | % | ||||||
Chilean Peso/Canadian Dollar | 696.481 | 690.164 | 631.752 | 0.9 | % | 10.2 | % | ||||||
Average exchange rate | % Change | ||||||||||||
October 31, 2022 | |||||||||||||
For the year ended | 2022 | 2021 | vs. October 31, 2021 | ||||||||||
0.777 | 0.795 | (2.3) | % | ||||||||||
Mexican Peso/Canadian Dollar | 15.799 | 16.035 | (1.5) | % | |||||||||
Peruvian Sol/Canadian Dollar | 3.002 | 3.032 | (1.0) | % | |||||||||
Colombian Peso/Canadian Dollar | 3,187 | 2,929 | 8.8 | % | |||||||||
Chilean Peso/Canadian Dollar | 669.905 | 593.123 | 12.9 | % | |||||||||
For the three months ended | For the year ended | ||||||||||||
Impact on net income(1) ($ millions except EPS) | October 31, 2022 | October 31, 2022 | |||||||||||
vs. October 31, 2021 | vs. | vs. October 31, 2021 | |||||||||||
Net interest income | $ | 45 | $ | 36 | $ | (158) | |||||||
Non-interest income(2) | (38) | (46) | (109) | ||||||||||
Non-interest expenses | (35) | (29) | 92 | ||||||||||
Other items (net of tax) | 10 | 10 | 72 | ||||||||||
Net income | $ | (18) | $ | (29) | $ | (103) | |||||||
Earnings per share (diluted) | $ | (0.02) | $ | (0.02) | $ | (0.09) | |||||||
Impact by business line ($ millions) | |||||||||||||
Canadian Banking | $ | 2 | $ | - | $ | 3 | |||||||
International Banking(2) | 4 | (7) | (97) | ||||||||||
Global Wealth Management | 3 | 2 | - | ||||||||||
Global Banking and Markets | 22 | 14 | 27 | ||||||||||
Other(2) | (49) | (38) | (36) | ||||||||||
Net income | $ | (18) | $ | (29) | $ | (103) |
(1) | Includes impact of all currencies. |
(2) | Includes the impact of foreign currency hedges. |
Group Financial Performance
Net income
Q4 2022 vs Q4 2021
Net income was
The impact on net income of adjusting items for the current quarter was
The adjustments in the prior year were
Adjusted net income was
Q4 2022 vs Q3 2022
Net income was
Total revenue
Q4 2022 vs Q4 2021
Revenues were
Q4 2022 vs Q3 2022
Revenues were
Net interest income
Q4 2022 vs Q4 2021
Net interest income was
Q4 2022 vs Q3 2022
Net interest income decreased
Net interest margin of 2.18% was down 4 basis points driven by a lower contribution from asset/liability management activities related to higher funding costs, as well as a lower Canadian Banking margin, partly offset by a higher International Banking margin, as well as decreased levels of high quality, lower-margin liquid assets.
Non-interest income
Q4 2022 vs Q4 2021
Non-interest income was
Q4 2022 vs Q3 2022
Non-interest income was down
Provision for credit losses
Q4 2022 vs Q4 2021
The provision for credit losses was
The provision for credit losses on performing loans was
The provision for credit losses on impaired loans was
Q4 2022 vs Q3 2022
The provision for credit losses was
The provision for credit losses on performing loans was
The provision for credit losses on impaired loans was
The provision for credit losses ratio on impaired loans was 26 basis points, an increase of five basis points.
Non-interest expenses
Q4 2022 vs Q4 2021
Non-interest expenses were
The productivity ratio was 59.4% compared to 55.6%. The adjusted productivity ratio was 53.7% compared to 52.8%.
Q4 2022 vs Q3 2022
Non-interest expenses were up
The productivity ratio was 59.4% compared to 53.7%. The adjusted productivity ratio was 53.7% compared to 53.4%.
Provision for income taxes
Q4 2022 vs Q4 2021
The effective tax rate was 18.5% compared to 21.2%. The adjusted effective tax rate was 17.6% compared to 21.5% due primarily to higher income from lower tax rate jurisdictions and higher tax-exempt income in the quarter.
Q4 2022 vs Q3 2022
The effective tax rate was 18.5% compared to 18.8% in the previous quarter. The adjusted effective tax rate was 17.6% compared to 18.8% in the previous quarter due primarily to higher tax-exempt income.
Capital Ratios
The Bank continues to maintain strong, high quality capital levels which position it well for future business growth and opportunities. The CET1 ratio as at
The Bank's Tier 1 capital ratio was 13.2% as at
The Bank's Total capital ratio was 15.3% as at
The TLAC ratio was 27.4% as at
The Leverage ratio was 4.2%, a decrease of approximately 60 basis points from the prior year due primarily to OSFI's discontinuance of the temporary exclusion of sovereign-issued securities from its leverage exposures measure, combined with strong growth in the Bank's on and off-balance sheet assets.
The TLAC Leverage ratio was 8.8%, a decrease of approximately 80 basis points from 2021, due primarily to strong growth in the Bank's on and off-balance sheet assets.
The Bank's capital ratios continue to be in excess of OSFI's minimum capital ratio requirements for 2022 for CET1, Tier 1 and Total Capital. The Bank was well above the OSFI minimum Leverage ratio as at
Business Segment Review
Canadian Banking
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis)(1) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Reported Results | ||||||||||||||||
Net interest income | $ | 2,363 | $ | 2,361 | $ | 2,082 | $ | 9,001 | $ | 8,030 | ||||||
Non-interest income(2) | 771 | 758 | 749 | 3,029 | 2,868 | |||||||||||
Total revenue | 3,134 | 3,119 | 2,831 | 12,030 | 10,898 | |||||||||||
Provision for credit losses | 163 | 93 | (96) | 209 | 333 | |||||||||||
Non-interest expenses | 1,397 | 1,385 | 1,251 | 5,388 | 4,951 | |||||||||||
Income tax expense | 404 | 428 | 438 | 1,670 | 1,459 | |||||||||||
Net income | $ | 1,170 | $ | 1,213 | $ | 1,238 | $ | 4,763 | $ | 4,155 | ||||||
Net income attributable to equity holders of the Bank | $ | 1,170 | $ | 1,213 | $ | 1,238 | $ | 4,763 | $ | 4,155 | ||||||
Other measures | ||||||||||||||||
Return on equity(3) | 24.7 % | 26.1 % | 29.4 % | 26.3 % | 25.2 % | |||||||||||
Net interest margin(3) | 2.26 % | 2.29 % | 2.20 % | 2.24 % | 2.23 % | |||||||||||
Average assets ($ billions) | $ | 446 | $ | 437 | $ | 398 | $ | 430 | $ | 381 | ||||||
Average liabilities ($ billions) | $ | 347 | $ | 337 | $ | 318 | $ | 332 | $ | 313 |
(1) | Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. | ||||||||||||||
(2) | Includes net income from investments in associated corporations for the three months ended | ||||||||||||||
(3) | Refer to Non-GAAP measures starting on page 22. |
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Adjusted Results(1) | ||||||||||||||||
Net interest income | $ | 2,363 | $ | 2,361 | $ | 2,082 | $ | 9,001 | $ | 8,030 | ||||||
Non-interest income | 771 | 758 | 749 | 3,029 | 2,868 | |||||||||||
Total revenue | 3,134 | 3,119 | 2,831 | 12,030 | 10,898 | |||||||||||
Provision for credit losses | 163 | 93 | (96) | 209 | 333 | |||||||||||
Non-interest expenses(2) | 1,391 | 1,380 | 1,245 | 5,366 | 4,929 | |||||||||||
Income tax expense | 406 | 429 | 440 | 1,676 | 1,465 | |||||||||||
Net income | $ | 1,174 | $ | 1,217 | $ | 1,242 | $ | 4,779 | $ | 4,171 |
(1) | Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. | ||||||||||||||
(2) | Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended | ||||||||||||||
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was
Q4 2022 vs Q3 2022
Net income attributable to equity holders declined
Total revenue
Q4 2022 vs Q4 2021
Revenues were
Q4 2022 vs Q3 2022
Revenues increased
Net interest income
Q4 2022 vs Q4 2021
Net interest income of
Q4 2022 vs Q3 2022
Net interest income was in line with prior quarter. Strong loan and deposit growth were offset by margin compression. The net interest margin decreased three basis points to 2.26%, due primarily to lower mortgage prepayment fees and lower spreads on variable rate mortgages, partly offset by higher deposit spreads.
Non-interest income
Q4 2022 vs Q4 2021
Non-interest income of
Q4 2022 vs Q3 2022
Non-interest income increased
Provision for credit losses
Q4 2022 vs Q4 2021
The provision for credit losses was
Provision for credit losses on performing loans was
Provision for credit losses on impaired loans was
Q4 2022 vs Q3 2022
The provision for credit losses was
Provision for credit losses on performing loans was
Provision for credit losses on impaired loans was
Non-interest expenses
Q4 2022 vs Q4 2021
Non-interest expenses were
Q4 2022 vs Q3 2022
Non-interest expenses were up
Provision for income taxes
The effective tax rate was 25.7% for the quarter, compared to 26.2% in the prior year and 26.1% in the prior quarter.
Average assets
Q4 2022 vs Q4 2021
Average assets increased
Q4 2022 vs Q3 2022
Average assets increased
Average liabilities
Q4 2022 vs Q4 2021
Average liabilities increased
Q4 2022 vs Q3 2022
Average liabilities increased
International Banking
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis)(1) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Reported Results | ||||||||||||||||
Net interest income | $ | 1,806 | $ | 1,759 | $ | 1,589 | $ | 6,900 | $ | 6,625 | ||||||
Non-interest income(2) | 698 | 660 | 728 | 2,827 | 2,993 | |||||||||||
Total revenue | 2,504 | 2,419 | 2,317 | 9,727 | 9,618 | |||||||||||
Provision for credit losses | 355 | 325 | 314 | 1,230 | 1,574 | |||||||||||
Non-interest expenses | 1,364 | 1,295 | 1,259 | 5,212 | 5,254 | |||||||||||
Income tax expense | 106 | 122 | 137 | 618 | 635 | |||||||||||
Net income | $ | 679 | $ | 677 | $ | 607 | $ | 2,667 | $ | 2,155 | ||||||
Net income attributable to non-controlling interests in | ||||||||||||||||
subsidiaries | 36 | 52 | 79 | 249 | 332 | |||||||||||
Net income attributable to equity holders of the Bank | $ | 643 | $ | 625 | $ | 528 | $ | 2,418 | $ | 1,823 | ||||||
Other measures | ||||||||||||||||
Return on equity(3) | 13.1 % | 13.0 % | 12.0 % | 12.9 % | 10.4 % | |||||||||||
Net interest margin(4) | 4.08 % | 3.95 % | 3.78 % | 3.96 % | 3.95 % | |||||||||||
Average assets ($ billions) | $ | 217 | $ | 209 | $ | 192 | $ | 207 | $ | 194 | ||||||
Average liabilities ($ billions) | $ | 160 | $ | 155 | $ | 146 | $ | 152 | $ | 149 |
(1) | Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. | |||||||||||||||
(2) | Includes net income from investments in associated corporations for the three months ended | |||||||||||||||
(3) | Refer to Non-GAAP Measures starting on page 22. | |||||||||||||||
(4) | Prior period has been restated to reflect the deduction of non-interest bearing deposits with financial institutions, to align with the Bank's definition. |
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Adjusted Results(1) | ||||||||||||||||
Net interest income | $ | 1,806 | $ | 1,759 | $ | 1,589 | $ | 6,900 | $ | 6,625 | ||||||
Non-interest income | 698 | 660 | 728 | 2,827 | 2,993 | |||||||||||
Total revenue | 2,504 | 2,419 | 2,317 | 9,727 | 9,618 | |||||||||||
Provision for credit losses | 355 | 325 | 314 | 1,230 | 1,574 | |||||||||||
Non-interest expenses(2) | 1,355 | 1,285 | 1,249 | 5,173 | 5,209 | |||||||||||
Income tax expense | 108 | 126 | 140 | 629 | 648 | |||||||||||
Net income | $ | 686 | $ | 683 | $ | 614 | $ | 2,695 | $ | 2,187 | ||||||
Net income attributable to non-controlling interests in | ||||||||||||||||
subsidiaries | 36 | 52 | 79 | 249 | 332 | |||||||||||
Net income attributable to equity holders of the Bank | $ | 650 | $ | 631 | $ | 535 | $ | 2,446 | $ | 1,855 |
(1) | Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. | |||||||||||||||
(2) | Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended | |||||||||||||||
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was
Q4 2022 vs Q3 2022
Net income attributable to equity holders increased by
Financial Performance on a Constant Dollar Basis
International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure (refer to Non-GAAP Measures starting on page 22). Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. The tables below are computed on a basis that is different than the "Impact of foreign currency translation" table on page 4. Ratios are on a reported basis.
The discussion below on the results of operations is on a constant dollar basis.
Reported results on a constant dollar basis | ||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Net interest income | $ | 1,806 | $ | 1,786 | $ | 1,622 | $ | 6,900 | $ | 6,478 | ||||||
Non-interest income | 698 | 640 | 700 | 2,827 | 2,874 | |||||||||||
Total revenue | 2,504 | 2,426 | 2,322 | 9,727 | 9,352 | |||||||||||
Provision for credit losses | 355 | 328 | 323 | 1,230 | 1,534 | |||||||||||
Non-interest expenses | 1,364 | 1,311 | 1,278 | 5,212 | 5,149 | |||||||||||
Income tax expense | 106 | 114 | 130 | 618 | 605 | |||||||||||
Net income | $ | 679 | $ | 673 | $ | 591 | $ | 2,667 | $ | 2,064 | ||||||
Net income attributable to non-controlling interests in | ||||||||||||||||
subsidiaries | 36 | 52 | 76 | 249 | 308 | |||||||||||
Net income attributable to equity holders of the Bank | $ | 643 | $ | 621 | $ | 515 | $ | 2,418 | $ | 1,756 | ||||||
Other Measures | ||||||||||||||||
Average assets ($ billions) | $ | 217 | $ | 213 | $ | 195 | $ | 207 | $ | 190 | ||||||
Average liabilities($ billions) | $ | 160 | $ | 158 | $ | 147 | $ | 152 | $ | 144 | ||||||
Adjusted results on a constant dollar basis | ||||||||||||||||
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Net interest income | $ | 1,806 | $ | 1,786 | $ | 1,622 | $ | 6,900 | $ | 6,478 | ||||||
Non-interest income | 698 | 640 | 700 | 2,827 | 2,874 | |||||||||||
Total revenue | 2,504 | 2,426 | 2,322 | 9,727 | 9,352 | |||||||||||
Provision for credit losses | 355 | 328 | 323 | 1,230 | 1,534 | |||||||||||
Non-interest expenses | 1,355 | 1,302 | 1,268 | 5,173 | 5,107 | |||||||||||
Income tax expense | 108 | 117 | 134 | 629 | 616 | |||||||||||
Net income | $ | 686 | $ | 679 | $ | 597 | $ | 2,695 | $ | 2,095 | ||||||
Net income attributable to non-controlling interests in | ||||||||||||||||
subsidiaries | 36 | 51 | 76 | 249 | 309 | |||||||||||
Net income attributable to equity holders of the Bank | $ | 650 | $ | 628 | $ | 521 | $ | 2,446 | $ | 1,786 | ||||||
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was
Q4 2022 vs Q3 2022
Net income attributable to equity holders increased by
Total revenue
Q4 2022 vs Q4 2021
Revenues were
Q4 2022 vs Q3 2022
Revenues increased by
Net interest income
Q4 2022 vs Q4 2021
Net interest income of
Q4 2022 vs Q3 2022
Net interest income increased by
Non-interest income
Q4 2022 vs Q4 2021
Non-interest income was
Q4 2022 vs Q3 2022
Non-interest income increased by
Provision for credit losses
Q4 2022 vs Q4 2021
The provision for credit losses was
Provision for credit losses on performing loans was
Provision for credit losses on impaired loans was
Q4 2022 vs Q3 2022
The provision for credit losses was
Provision for credit losses on performing loans was
Provision for credit losses on impaired loans was
Non-interest expenses
Q4 2022 vs Q4 2021
Non-interest expenses were
Q4 2022 vs Q3 2022
Non-interest expenses were
Provision for income taxes
Q4 2022 vs Q4 2021
The effective tax rate was 13.5%, compared to 18.4%. On an adjusted basis, the effective tax rate was 13.6% compared to 18.6%, primarily due to higher inflationary adjustments in
Q4 2022 vs Q3 2022
The effective tax rate was 13.5%, compared to 15.4%. On an adjusted basis, the effective tax rate was 13.6% compared to 15.5% due primarily to a prior period tax recovery and higher inflationary adjustments in
Average assets
Q4 2022 vs Q4 2021
Average assets were
Q4 2022 vs Q3 2022
Average assets increased by
Average liabilities
Q4 2022 vs Q4 2021
Average liabilities of
Q4 2022 vs Q3 2022
Average liabilities were up
Global Wealth Management
For the three months ended | For the year ended | |||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
(Taxable equivalent basis)(1) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||
Reported Results | ||||||||||||||
Net interest income | $ | 206 | $ | 200 | $ | 161 | $ | 764 | $ | 628 | ||||
Non-interest income | 1,083 | 1,112 | 1,186 | 4,617 | 4,752 | |||||||||
Total revenue | 1,289 | 1,312 | 1,347 | 5,381 | 5,380 | |||||||||
Provision for credit losses | 1 | 5 | 1 | 6 | 2 | |||||||||
Non-interest expenses | 798 | 796 | 824 | 3,259 | 3,255 | |||||||||
Income tax expense | 127 | 133 | 135 | 551 | 549 | |||||||||
Net income | $ | 363 | $ | 378 | $ | 387 | $ | 1,565 | $ | 1,574 | ||||
Net income attributable to non-controlling interests in | ||||||||||||||
subsidiaries | 2 | 2 | 2 | 9 | 9 | |||||||||
Net income attributable to equity holders of the Bank | $ | 361 | $ | 376 | $ | 385 | $ | 1,556 | $ | 1,565 | ||||
Other measures | ||||||||||||||
Return on equity(2) | 14.8 % | 15.5 % | 16.3 % | 16.2 % | 16.7 % | |||||||||
Assets under administration ($ billions) | $ | 580 | $ | 581 | $ | 597 | $ | 580 | $ | 597 | ||||
Assets under management ($ billions) | $ | 311 | $ | 320 | $ | 346 | $ | 311 | $ | 346 |
(1) | Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. | |||||||||||||
(2) | Refer to Non-GAAP Measures starting on page 22. |
For the three months ended | For the year ended | |||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||
Adjusted Results(1) | ||||||||||||||
Net interest income | $ | 206 | $ | 200 | $ | 161 | $ | 764 | $ | 628 | ||||
Non-interest income | 1,083 | 1,112 | 1,186 | 4,617 | 4,752 | |||||||||
Total revenue | 1,289 | 1,312 | 1,347 | 5,381 | 5,380 | |||||||||
Provision for credit losses | 1 | 5 | 1 | 6 | 2 | |||||||||
Non-interest expenses(2) | 789 | 787 | 815 | 3,223 | 3,219 | |||||||||
Income tax expense | 129 | 135 | 137 | 560 | 558 | |||||||||
Net income | $ | 370 | $ | 385 | $ | 394 | $ | 1,592 | $ | 1,601 | ||||
Net income attributable to non-controlling interests in | ||||||||||||||
subsidiaries | 2 | 2 | 2 | 9 | 9 | |||||||||
Net income attributable to equity holders of the Bank | $ | 368 | $ | 383 | $ | 392 | $ | 1,583 | $ | 1,592 |
(1) | Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. | |||||||||||||
(2) | Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended | |||||||||||||
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was
Q4 2022 vs Q3 2022
Net income attributable to equity holders decreased
Total revenue
Q4 2022 vs Q4 2021
Revenues were
Q4 2022 vs Q3 2022
Revenues were down
Provision for credit losses
Q4 2022 vs Q4 2021
The provision for credit losses was
Q4 2022 vs Q3 2022
The provision for credit losses was
Non-interest expenses
Q4 2022 vs Q4 2021
Non-interest expenses of
Q4 2022 vs Q3 2022
Non-interest expenses were in line with last quarter as lower volume-related expenses were largely offset by technology costs to support business initiatives.
Provision for income taxes
The effective tax rate was 25.8% compared to 25.9% in the prior year and 26.1% in the prior quarter.
Assets under management (AUM) and assets under administration (AUA)
Q4 2022 vs Q4 2021
Assets under management of
Q4 2022 vs Q3 2022
Assets under management decreased
Global Banking and Markets
For the three months ended | For the year ended | |||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
(Taxable equivalent basis)(1) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||
Reported Results | ||||||||||||||
Net interest income | $ | 492 | $ | 405 | $ | 365 | $ | 1,630 | $ | 1,436 | ||||
Non-interest income | 862 | 747 | 812 | 3,542 | 3,587 | |||||||||
Total revenue | 1,354 | 1,152 | 1,177 | 5,172 | 5,023 | |||||||||
Provision for credit losses | 11 | (15) | (50) | (66) | (100) | |||||||||
Non-interest expenses | 696 | 655 | 591 | 2,674 | 2,458 | |||||||||
Income tax expense | 163 | 134 | 134 | 653 | 590 | |||||||||
Net income | $ | 484 | $ | 378 | $ | 502 | $ | 1,911 | $ | 2,075 | ||||
Net income attributable to | ||||||||||||||
equity holders of the Bank | $ | 484 | $ | 378 | $ | 502 | $ | 1,911 | $ | 2,075 | ||||
Other measures | ||||||||||||||
Return on equity(2) | 13.4 % | 11.1 % | 15.5 % | 14.3 % | 16.5 % | |||||||||
Average assets ($ billions) | $ | 461 | $ | 443 | $ | 409 | $ | 445 | $ | 401 | ||||
Average liabilities ($ billions) | $ | 430 | $ | 419 | $ | 382 | $ | 414 | $ | 385 |
(1) | Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. | |||||||||||||
(2) | Refer to Non-GAAP Measures starting on page 22. | |||||||||||||
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was
Q4 2022 vs Q3 2022
Net income attributable to equity holders increased by
Total revenue
Q4 2022 vs Q4 2021
Revenues were
Q4 2022 vs Q3 2022
Revenues increased by
Net interest income
Q4 2022 vs Q4 2021
Net interest income was
Q4 2022 vs Q3 2022
Net interest income increased by
Non-interest income
Q4 2022 vs Q4 2021
Non-interest income was
Q4 2022 vs Q3 2022
Non-interest income increased by
Provision for credit losses
Q4 2022 vs Q4 2021
The provision for credit losses was
Provision for credit losses on performing loans was a net reversal of
Provision for credit losses on impaired loans was
Q4 2022 vs Q3 2022
The provision for credit losses was
Provision for credit losses on performing loans was a net reversal of
Provision for credit losses on impaired loans was
Non-interest expenses
Q4 2022 vs Q4 2021
Non-interest expenses of
Q4 2022 vs Q3 2022
Non-interest expenses increased
Provision for income taxes
Q4 2022 vs Q4 2021
The effective tax rate for the quarter was 25.2% compared to 21.0% in the prior year. The changes were due mainly to prior year recoveries and the change in earnings mix across jurisdictions.
Q4 2022 vs Q3 2022
The effective tax rate for the quarter was 25.2% compared to 26.1%.
Average assets
Q4 2022 vs Q4 2021
Average assets were
Q4 2022 vs Q3 2022
Average assets increased
Average liabilities
Q4 2022 vs Q4 2021
Average liabilities were
Q4 2022 vs Q3 2022
Average liabilities increased
Other
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis)(1) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Reported Results | ||||||||||||||||
Net interest income | $ | (245) | $ | (49) | $ | 20 | $ | (180) | $ | 242 | ||||||
Non-interest income | (410) | (154) | (5) | (714) | 91 | |||||||||||
Total revenue | (655) | (203) | 15 | (894) | 333 | |||||||||||
Provision for credit losses | (1) | 4 | (1) | 3 | (1) | |||||||||||
Non-interest expenses | 274 | 60 | 346 | 569 | 700 | |||||||||||
Income tax expense | (325) | (215) | (155) | (734) | (362) | |||||||||||
Net income (loss) | $ | (603) | $ | (52) | $ | (175) | $ | (732) | $ | (4) | ||||||
Net income (loss) attributable to non-controlling | ||||||||||||||||
interests in subsidiaries | - | - | (11) | - | (10) | |||||||||||
Net income (loss) attributable to equity | ||||||||||||||||
holders of the Bank | $ | (603) | $ | (52) | $ | (164) | $ | (732) | $ | 6 | ||||||
Other measures | ||||||||||||||||
Average assets ($ billions) | $ | 175 | $ | 173 | $ | 144 | $ | 167 | $ | 152 | ||||||
Average liabilities ($ billions) | $ | 278 | $ | 263 | $ | 206 | $ | 263 | $ | 193 |
(1) | Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2022 Annual Report to Shareholders. |
For the three months ended | For the year ended | |||||||||||||||
(Unaudited)($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||||
(Taxable equivalent basis) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Adjusted Results(1) | ||||||||||||||||
Net interest income | $ | (245) | $ | (49) | $ | 20 | $ | (180) | $ | 242 | ||||||
Non-interest income(2) | (49) | (154) | (5) | (353) | 91 | |||||||||||
Total revenue | (294) | (203) | 15 | (533) | 333 | |||||||||||
Provision for credit losses | (1) | 4 | (1) | 3 | (1) | |||||||||||
Non-interest expenses(3) | 56 | 60 | 158 | 351 | 512 | |||||||||||
Income tax expense | (250) | (215) | (106) | (659) | (313) | |||||||||||
Net income (loss) | $ | (99) | $ | (52) | $ | (36) | $ | (228) | $ | 135 | ||||||
Net income (loss) attributable to non-controlling | ||||||||||||||||
interests in subsidiaries | 1 | - | (1) | 1 | - | |||||||||||
Net income (loss) attributable to equity | ||||||||||||||||
holders of the Bank | $ | (100) | $ | (52) | $ | (35) | $ | (229) | $ | 135 |
(1) | Refer to Non-GAAP Measures starting on page 22 for the reconciliation of reported and adjusted results. | |||||||||||||||
(2) | Includes adjustment for net loss on divestitures and wind-down of operations of | |||||||||||||||
(3) | Includes adjustment for restructuring and other provisions of | |||||||||||||||
The Other segment includes Group Treasury, smaller operating segments and corporate items which are not allocated to a business line.
Net income
Q4 2022 vs Q4 2021
Net income attributable to equity holders was a net loss of
Q4 2022 vs Q3 2022
Net income attributable to equity holders decreased
Consolidated Statement of Financial Position
As at | ||||||||
(Unaudited) ($ millions) | ||||||||
2022 | 2022 | 2021 | ||||||
Assets | ||||||||
Cash and deposits with financial institutions | $ | 65,895 | $ | 67,715 | $ | 86,323 | ||
Precious metals | 543 | 837 | 755 | |||||
Trading assets | ||||||||
Securities | 103,547 | 108,538 | 137,148 | |||||
Loans | 7,811 | 8,295 | 8,113 | |||||
Other | 1,796 | 1,772 | 1,051 | |||||
113,154 | 118,605 | 146,312 | ||||||
Securities purchased under resale agreements and securities borrowed | 175,313 | 155,217 | 127,739 | |||||
Derivative financial instruments | 55,699 | 47,139 | 42,302 | |||||
Investment securities | 110,008 | 108,222 | 75,199 | |||||
Loans | ||||||||
Residential mortgages | 349,279 | 343,965 | 319,678 | |||||
Personal loans | 99,431 | 96,561 | 91,540 | |||||
Credit cards | 14,518 | 13,871 | 12,450 | |||||
Business and government | 287,107 | 264,128 | 218,944 | |||||
750,335 | 718,525 | 642,612 | ||||||
Allowance for credit losses | 5,348 | 5,147 | 5,626 | |||||
744,987 | 713,378 | 636,986 | ||||||
Other | ||||||||
Customers' liability under acceptances, net of allowance | 19,494 | 19,817 | 20,404 | |||||
Property and equipment | 5,700 | 5,529 | 5,621 | |||||
Investments in associates | 2,633 | 2,733 | 2,604 | |||||
16,833 | 16,580 | 16,604 | ||||||
Deferred tax assets | 1,903 | 905 | 2,051 | |||||
Other assets | 37,256 | 35,425 | 21,944 | |||||
83,819 | 80,989 | 69,228 | ||||||
Total assets | $ | 1,349,418 | $ | 1,292,102 | $ | 1,184,844 | ||
Liabilities | ||||||||
Deposits | ||||||||
Personal | $ | 265,892 | $ | 259,503 | $ | 243,551 | ||
Business and government | 597,617 | 566,966 | 511,348 | |||||
Financial institutions | 52,672 | 53,113 | 42,360 | |||||
916,181 | 879,582 | 797,259 | ||||||
Financial instruments designated at fair value through profit or loss | 22,421 | 22,876 | 22,493 | |||||
Other | ||||||||
Acceptances | 19,525 | 19,844 | 20,441 | |||||
Obligations related to securities sold short | 40,449 | 44,220 | 40,954 | |||||
Derivative financial instruments | 65,900 | 56,880 | 42,203 | |||||
Obligations related to securities sold under repurchase agreements and securities lent | 139,025 | 128,145 | 123,469 | |||||
Subordinated debentures | 8,469 | 8,413 | 6,334 | |||||
Other liabilities | 62,699 | 58,557 | 58,799 | |||||
336,067 | 316,059 | 292,200 | ||||||
Total liabilities | 1,274,669 | 1,218,517 | 1,111,952 | |||||
Equity | ||||||||
Common equity | ||||||||
Common shares | 18,707 | 18,728 | 18,507 | |||||
Retained earnings | 53,761 | 53,151 | 51,354 | |||||
Accumulated other comprehensive income (loss) | (7,166) | (6,684) | (5,333) | |||||
Other reserves | (152) | (152) | 222 | |||||
Total common equity | 65,150 | 65,043 | 64,750 | |||||
Preferred shares and other equity instruments | 8,075 | 7,052 | 6,052 | |||||
Total equity attributable to equity holders of the Bank | 73,225 | 72,095 | 70,802 | |||||
Non-controlling interests in subsidiaries | 1,524 | 1,490 | 2,090 | |||||
Total equity | 74,749 | 73,585 | 72,892 | |||||
Total liabilities and equity | $ | 1,349,418 | $ | 1,292,102 | $ | 1,184,844 | ||
Consolidated Statement of Income
For the three months ended | For the year ended | ||||||||||
(Unaudited) ($ millions) | |||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||
Revenue | |||||||||||
Interest income(1) | |||||||||||
Loans | $ | 9,271 | $ | 7,707 | $ | 5,751 | $ | 29,390 | $ | 23,159 | |
Securities | 1,217 | 802 | 343 | 2,877 | 1,467 | ||||||
Securities purchased under resale agreements and securities borrowed | 209 | 132 | 45 | 459 | 178 | ||||||
Deposits with financial institutions | 421 | 244 | 47 | 832 | 182 | ||||||
11,118 | 8,885 | 6,186 | 33,558 | 24,986 | |||||||
Interest expense | |||||||||||
Deposits | 5,722 | 3,475 | 1,513 | 12,794 | 6,465 | ||||||
Subordinated debentures | 93 | 77 | 46 | 270 | 180 | ||||||
Other | 681 | 657 | 410 | 2,379 | 1,380 | ||||||
6,496 | 4,209 | 1,969 | 15,443 | 8,025 | |||||||
Net interest income | 4,622 | 4,676 | 4,217 | 18,115 | 16,961 | ||||||
Non-interest income | |||||||||||
Card revenues | 195 | 187 | 187 | 779 | 749 | ||||||
Banking services fees | 456 | 447 | 414 | 1,770 | 1,598 | ||||||
Credit fees | 451 | 398 | 368 | 1,647 | 1,485 | ||||||
Mutual funds | 528 | 538 | 605 | 2,269 | 2,394 | ||||||
Brokerage fees | 264 | 276 | 265 | 1,125 | 1,039 | ||||||
Investment management and trust | 242 | 247 | 251 | 999 | 994 | ||||||
Underwriting and advisory fees | 136 | 98 | 144 | 543 | 724 | ||||||
Non-trading foreign exchange | 228 | 209 | 179 | 878 | 787 | ||||||
Trading revenues | 418 | 311 | 409 | 1,791 | 2,033 | ||||||
Net gain on sale of investment securities | 71 | - | 83 | 74 | 419 | ||||||
Net income from investments in associated corporations | 49 | 44 | 96 | 268 | 339 | ||||||
Insurance underwriting income, net of claims | 114 | 113 | 102 | 433 | 398 | ||||||
Other fees and commissions | 206 | 143 | 153 | 650 | 677 | ||||||
Other | (354) | 112 | 214 | 75 | 655 | ||||||
3,004 | 3,123 | 3,470 | 13,301 | 14,291 | |||||||
Total revenue | 7,626 | 7,799 | 7,687 | 31,416 | 31,252 | ||||||
Provision for credit losses | 529 | 412 | 168 | 1,382 | 1,808 | ||||||
7,097 | 7,387 | 7,519 | 30,034 | 29,444 | |||||||
Non-interest expenses | |||||||||||
Salaries and employee benefits | 2,187 | 2,194 | 2,054 | 8,836 | 8,541 | ||||||
Premises and technology | 636 | 612 | 598 | 2,424 | 2,351 | ||||||
Depreciation and amortization | 394 | 381 | 383 | 1,531 | 1,511 | ||||||
Communications | 90 | 88 | 93 | 361 | 369 | ||||||
Advertising and business development | 140 | 123 | 126 | 480 | 404 | ||||||
Professional | 239 | 200 | 242 | 826 | 789 | ||||||
Business and capital taxes | 134 | 135 | 120 | 541 | 511 | ||||||
Other | 709 | 458 | 655 | 2,103 | 2,142 | ||||||
4,529 | 4,191 | 4,271 | 17,102 | 16,618 | |||||||
Income before taxes | 2,568 | 3,196 | 3,248 | 12,932 | 12,826 | ||||||
Income tax expense | 475 | 602 | 689 | 2,758 | 2,871 | ||||||
Net income | $ | 2,093 | $ | 2,594 | $ | 2,559 | $ | 10,174 | $ | 9,955 | |
Net income attributable to non-controlling interests in subsidiaries | 38 | 54 | 70 | 258 | 331 | ||||||
Net income attributable to equity holders of the Bank | $ | 2,055 | $ | 2,540 | $ | 2,489 | $ | 9,916 | $ | 9,624 | |
Preferred shareholders and other equity instrument holders | 106 | 36 | 78 | 260 | 233 | ||||||
Common shareholders | $ | 1,949 | $ | 2,504 | $ | 2,411 | $ | 9,656 | $ | 9,391 | |
Earnings per common share (in dollars) | |||||||||||
Basic | $ | 1.64 | $ | 2.10 | $ | 1.98 | $ | 8.05 | $ | 7.74 | |
Diluted | 1.63 | 2.09 | 1.97 | 8.02 | 7.70 | ||||||
Dividends paid per common share (in dollars) | 1.03 | 1.03 | 0.90 | 4.06 | 3.60 |
(1) | Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of | ||||||||||
Consolidated Statement of Comprehensive Income
For the three months ended | For the year ended | |||||||||
(Unaudited) ($ millions) | ||||||||||
2022 | 2022 | 2021 | 2022 | 2021 | ||||||
Net income | $ | 2,093 | $ | 2,594 | $ | 2,559 | $ | 10,174 | $ | 9,955 |
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) | 3,106 | (977) | (1,059) | 3,703 | (4,515) | |||||
Net gains (losses) on hedges of net investments in foreign operations | (1,140) | 234 | 232 | (1,655) | 1,307 | |||||
Income tax expense (benefit): | ||||||||||
Net unrealized foreign currency translation gains (losses) | 27 | (7) | (9) | 28 | (31) | |||||
Net gains (losses) on hedges of net investments in foreign operations | (299) | 62 | 61 | (434) | 343 | |||||
2,238 | (798) | (879) | 2,454 | (3,520) | ||||||
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 | (2,460) | 242 | (647) | (4,333) | (1,341) | |||||
Reclassification of net (gains) losses to net income | 1,767 | (321) | 294 | 2,717 | 522 | |||||
Income tax expense (benefit): | ||||||||||
Net gains (losses) in fair value | (619) | 56 | (189) | (1,108) | (346) | |||||
Reclassification of net (gains) losses to net income | 458 | (109) | 75 | 704 | 127 | |||||
(532) | (26) | (239) | (1,212) | (600) | ||||||
Net change in gains (losses) on derivative instruments designated as cash flow | ||||||||||
hedges: | ||||||||||
Net gains (losses) on derivative instruments designated as cash flow hedges | (1,669) | (1,700) | (1,754) | (10,037) | (1,267) | |||||
Reclassification of net (gains) losses to net income | (937) | 1,620 | 830 | 3,880 | 176 | |||||
Income tax expense (benefit): | ||||||||||
Net gains (losses) on derivative instruments designated as cash flow hedges | (444) | (482) | (518) | (2,709) | (471) | |||||
Reclassification of net (gains) losses to net income | (233) | 452 | 272 | 1,089 | 186 | |||||
(1,929) | (50) | (678) | (4,537) | (806) | ||||||
Other comprehensive income (loss) from investments in associates | (382) | 17 | 6 | (344) | 37 | |||||
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 | (17) | (231) | 398 | 955 | 1,815 | |||||
Income tax expense (benefit) | (1) | (70) | 106 | 277 | 480 | |||||
(16) | (161) | 292 | 678 | 1,335 | ||||||
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 | (160) | (175) | 96 | (106) | 532 | |||||
Income tax expense (benefit) | (46) | (45) | 25 | (32) | 124 | |||||
(114) | (130) | 71 | (74) | 408 | ||||||
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 | 373 | 567 | (24) | 1,958 | (270) | |||||
Income tax expense (benefit) | 98 | 149 | (7) | 514 | (71) | |||||
275 | 418 | (17) | 1,444 | (199) | ||||||
Other comprehensive income (loss) from investments in associates | - | - | - | 2 | 5 | |||||
Other comprehensive income (loss) | (460) | (730) | (1,444) | (1,589) | (3,340) | |||||
Comprehensive income (loss) | $ | 1,633 | $ | 1,864 | $ | 1,115 | $ | 8,585 | $ | 6,615 |
Comprehensive income (loss) attributable to non-controlling interests | 60 | (32) | (27) | 233 | 125 | |||||
Comprehensive income (loss) attributable to equity holders of the Bank | $ | 1,573 | $ | 1,896 | $ | 1,142 | $ | 8,352 | $ | 6,490 |
Preferred shareholders and other equity instrument holders | 106 | 36 | 78 | 260 | 233 | |||||
Common shareholders | $ | 1,467 | $ | 1,860 | $ | 1,064 | $ | 8,092 | $ | 6,257 |
Consolidated Statement of Changes in Equity
Accumulated other comprehensive income (loss) | |||||||||||||||||||||||||||||||||||||||
Preferred | Total | Non- | |||||||||||||||||||||||||||||||||||||
Foreign | Debt | Equity | Cash | Total | shares and | attributable | controlling | ||||||||||||||||||||||||||||||||
Common | Retained | currency | instruments | instruments | flow | Other | common | other equity | to equity | interests in | |||||||||||||||||||||||||||||
(unaudited) ($ millions) | shares | earnings | (1) | translation | FVOCI | FVOCI | hedges | Other | (2) | reserves | equity | instruments | holders | subsidiaries | Total | ||||||||||||||||||||||||
Balance as at | $ | 18,507 | $ | 51,354 | $ | (4,709) | $ | (270) | $ | 291 | $ | (214) | $ | (431) | $ | 222 | $ | 64,750 | $ | 6,052 | $ | 70,802 | $ | 2,090 | $ | 72,892 | |||||||||||||
Net income | - | 9,656 | - | - | - | - | - | - | 9,656 | 260 | 9,916 | 258 | 10,174 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | - | - | 2,411 | (1,212) | (35) | (4,523) | 1,795 | - | (1,564) | - | (1,564) | (25) | (1,589) | ||||||||||||||||||||||||||
Total comprehensive income | $ | - | $ | 9,656 | $ | 2,411 | $ | (1,212) | $ | (35) | $ | (4,523) | $ | 1,795 | $ | - | $ | 8,092 | $ | 260 | $ | 8,352 | $ | 233 | $ | 8,585 | |||||||||||||
Shares/instruments issued | 706 | - | - | - | - | - | - | (18) | 688 | 2,523 | 3,211 | - | 3,211 | ||||||||||||||||||||||||||
Shares repurchased/redeemed | (506) | (2,367) | - | - | - | - | - | - | (2,873) | (500) | (3,373) | - | (3,373) | ||||||||||||||||||||||||||
Dividends and distributions paid to equity holders | - | (4,858) | - | - | - | - | - | - | (4,858) | (260) | (5,118) | (115) | (5,233) | ||||||||||||||||||||||||||
Share-based payments(3) | - | - | - | - | - | - | - | 10 | 10 | - | 10 | - | 10 | ||||||||||||||||||||||||||
Other | - | (24) | (180) | - | (40) | (49) | - | (366) | (4) | (659) | - | (659) | (684) | (4) | (1,343) | ||||||||||||||||||||||||
Balance as at | $ | 18,707 | $ | 53,761 | $ | (2,478) | $ | (1,482) | $ | 216 | $ | (4,786) | $ | 1,364 | $ | (152) | $ | 65,150 | $ | 8,075 | $ | 73,225 | $ | 1,524 | $ | 74,749 | |||||||||||||
Balance as at | $ | 18,239 | $ | 46,345 | $ | (1,328) | $ | 330 | $ | (163) | $ | 639 | $ | (1,603) | $ | 360 | $ | 62,819 | $ | 5,308 | $ | 68,127 | $ | 2,376 | $ | 70,503 | |||||||||||||
Net income | - | 9,391 | - | - | - | - | - | - | 9,391 | 233 | 9,624 | 331 | 9,955 | ||||||||||||||||||||||||||
Other comprehensive income (loss) | - | - | (3,322) | (600) | 460 | (844) | 1,172 | - | (3,134) | - | (3,134) | (206) | (3,340) | ||||||||||||||||||||||||||
Total comprehensive income | $ | - | $ | 9,391 | $ | (3,322) | $ | (600) | $ | 460 | $ | (844) | $ | 1,172 | $ | - | $ | 6,257 | $ | 233 | $ | 6,490 | $ | 125 | $ | 6,615 | |||||||||||||
Shares/instruments issued | 268 | - | - | - | - | - | - | (25) | 243 | 2,003 | 2,246 | - | 2,246 | ||||||||||||||||||||||||||
Shares repurchased/redeemed | - | - | - | - | - | - | - | - | - | (1,259) | (1,259) | - | (1,259) | ||||||||||||||||||||||||||
Dividends and distributions paid to equity holders | - | (4,371) | - | - | - | - | - | - | (4,371) | (233) | (4,604) | (123) | (4,727) | ||||||||||||||||||||||||||
Share-based payments(3) | - | - | - | - | - | - | - | 7 | 7 | - | 7 | - | 7 | ||||||||||||||||||||||||||
Other | - | (11) | (59) | - | (6) | (9) | - | (120) | (4) | (205) | - | (205) | (288) | (4) | (493) | ||||||||||||||||||||||||
Balance as at | $ | 18,507 | $ | 51,354 | $ | (4,709) | $ | (270) | $ | 291 | $ | (214) | $ | (431) | $ | 222 | $ | 64,750 | $ | 6,052 | $ | 70,802 | $ | 2,090 | $ | 72,892 |
(1) | Includes undistributed retained earnings of | ||||||||||||||||||||||||||||||||||||||
(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 2022 Annual Report to Shareholders). | ||||||||||||||||||||||||||||||||||||||
(4) | Includes changes to non-controlling interests arising from business combinations and related transactions. | ||||||||||||||||||||||||||||||||||||||
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 | ||||
2022 | 2021 | 2022 | 2021 | |||||
Cash flows from operating activities | ||||||||
Net income | $ | 2,093 | $ | 2,559 | $ | 10,174 | $ | 9,955 |
Adjustment for: | ||||||||
Net interest income | (4,622) | (4,217) | (18,115) | (16,961) | ||||
Depreciation and amortization | 394 | 383 | 1,531 | 1,511 | ||||
Provision for credit losses | 529 | 168 | 1,382 | 1,808 | ||||
Equity-settled share-based payment expense | 1 | 1 | 10 | 7 | ||||
Net gain on sale of investment securities | (71) | (83) | (74) | (419) | ||||
Net (gain)/loss on divestitures | 233 | (6) | 233 | 9 | ||||
Net income from investments in associated corporations | (49) | (96) | (268) | (339) | ||||
Income tax expense | 475 | 689 | 2,758 | 2,871 | ||||
Changes in operating assets and liabilities: | ||||||||
Trading assets | 8,494 | (6,608) | 37,501 | (33,995) | ||||
Securities purchased under resale agreements and securities borrowed | (13,864) | (80) | (41,438) | (14,202) | ||||
Loans | (19,803) | (15,900) | (97,161) | (55,748) | ||||
Deposits | 13,825 | 10,470 | 95,905 | 78,569 | ||||
Obligations related to securities sold short | (4,700) | (2,016) | (1,292) | 10,078 | ||||
Obligations related to securities sold under repurchase agreements and securities lent | 5,780 | 12,278 | 10,838 | (7,709) | ||||
Net derivative financial instruments | (1,567) | 1,380 | 115 | 2,123 | ||||
Other, net | 5,876 | 3,093 | (1,404) | (5,300) | ||||
Dividends received | 299 | 284 | 1,156 | 969 | ||||
Interest received | 10,437 | 6,128 | 31,931 | 25,425 | ||||
Interest paid | (5,385) | (1,929) | (13,336) | (8,766) | ||||
Income tax paid | (742) | (501) | (3,503) | (2,693) | ||||
Net cash from/(used in) operating activities | (2,367) | 5,997 | 16,943 | (12,807) | ||||
Cash flows from investing activities | ||||||||
Interest-bearing deposits with financial institutions | 5,962 | (10,223) | 25,783 | (15,006) | ||||
Purchase of investment securities | (16,593) | (21,269) | (97,736) | (72,259) | ||||
Proceeds from sale and maturity of investment securities | 16,488 | 26,552 | 63,130 | 103,765 | ||||
Acquisition/divestiture of subsidiaries, associated corporations or business units, | ||||||||
net of cash acquired | 165 | (50) | (549) | (717) | ||||
Property and equipment, net of disposals | (177) | (191) | (571) | (462) | ||||
Other, net | (801) | (285) | (1,350) | (624) | ||||
Net cash from/(used in) investing activities | 5,044 | (5,466) | (11,293) | 14,697 | ||||
Cash flows from financing activities | ||||||||
Proceeds from issue of subordinated debentures | - | - | 3,356 | - | ||||
Redemption/repurchase of subordinated debentures | (24) | - | (1,276) | (750) | ||||
Proceeds from preferred shares and other equity instruments issued | 1,023 | 753 | 2,523 | 2,003 | ||||
Redemption of preferred shares | - | - | (500) | (1,259) | ||||
Proceeds from common shares issued | 5 | 14 | 137 | 268 | ||||
Common shares purchased for cancellation | (128) | - | (2,873) | - | ||||
Cash dividends and distributions paid | (1,333) | (1,173) | (5,118) | (4,604) | ||||
Distributions to non-controlling interests | (26) | (25) | (115) | (123) | ||||
Payment of lease liabilities | (69) | (102) | (322) | (344) | ||||
Other, net | (778) | 1,238 | (391) | 2,032 | ||||
Net cash from/(used in) financing activities | (1,330) | 705 | (4,579) | (2,777) | ||||
Effect of exchange rate changes on cash and cash equivalents | 305 | (96) | 301 | (543) | ||||
Net change in cash and cash equivalents | 1,652 | 1,140 | 1,372 | (1,430) | ||||
Cash and cash equivalents at beginning of period(1) | 9,413 | 8,553 | 9,693 | 11,123 | ||||
Cash and cash equivalents at end of period(1) | $ | 11,065 | $ | 9,693 | $ | 11,065 | $ | 9,693 |
(1) Represents cash and non-interest bearing deposits with financial institutions (refer to Note 6 in the 2022 Annual Report to Shareholders). | ||||||||
Non-GAAP Measures
The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the
Adjusted results and adjusted diluted earnings per share
The following table presents a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interest. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance. Net income and diluted earnings per share have been adjusted for the following:
1. Amortization of acquisition-related intangible assets:
Costs of
2. Restructuring and other provisions:
In Q4 2022, the Bank recorded a restructuring charge of
In the prior year, the Bank recorded a restructuring charge of
These charges were recorded in the Other operating segment.
3. Support costs for the Scene+ loyalty program:
The Bank recorded costs of
4. Net loss on divestitures and wind-down of operations:
In Q4 2022, the Bank sold its investments in associates in
Reconciliation of reported and adjusted results and diluted earnings per share
For the three months ended | For the year ended | ||||||||||
($ millions) | 2022 | 2022 | 2021 | 2022 | 2021 | ||||||
Reported Results | |||||||||||
Net interest income | $ | 4,622 | $ | 4,676 | $ | 4,217 | $ | 18,115 | $ | 16,961 | |
Non-interest income | 3,004 | 3,123 | 3,470 | 13,301 | 14,291 | ||||||
Total Revenue | 7,626 | 7,799 | 7,687 | 31,416 | 31,252 | ||||||
Provision for credit losses | 529 | 412 | 168 | 1,382 | 1,808 | ||||||
Non-interest expenses | 4,529 | 4,191 | 4,271 | 17,102 | 16,618 | ||||||
Income before taxes | 2,568 | 3,196 | 3,248 | 12,932 | 12,826 | ||||||
Income tax expense | 475 | 602 | 689 | 2,758 | 2,871 | ||||||
Net income | $ | 2,093 | $ | 2,594 | $ | 2,559 | $ | 10,174 | $ | 9,955 | |
Net income attributable to non-controlling interests in subsidiaries (NCI) | 38 | 54 | 70 | 258 | 331 | ||||||
Net income attributable to equity holders | $ | 2,055 | $ | 2,540 | $ | 2,489 | $ | 9,916 | $ | 9,624 | |
Net income attributable to preferred shareholders and other equity instrument holders | 106 | 36 | 78 | 260 | 233 | ||||||
Net income attributable to common shareholders | $ | 1,949 | $ | 2,504 | $ | 2,411 | $ | 9,656 | $ | 9,391 | |
Diluted earnings per share (in dollars) | $ | 1.63 | $ | 2.09 | $ | 1.97 | $ | 8.02 | $ | 7.70 | |
Adjustments | |||||||||||
Adjusting items impacting non-interest income and total revenue (Pre-tax) | |||||||||||
Net loss on divestitures and wind-down of operations | $ | 361 | $ | - | $ | - | $ | 361 | $ | - | |
Adjusting items impacting non-interest expense (Pre-tax) | |||||||||||
Amortization of acquisition-related intangible assets | 24 | 24 | 25 | 97 | 103 | ||||||
Restructuring and other provisions | 85 | - | 188 | 85 | 188 | ||||||
Support costs for the Scene+ loyalty program | 133 | - | - | 133 | - | ||||||
Total non-interest expense adjusting items (Pre-tax) | $ | 242 | $ | 24 | $ | 213 | $ | 315 | $ | 291 | |
Total impact of adjusting items on net income before taxes | $ | 603 | $ | 24 | $ | 213 | 676 | 291 | |||
Impact of adjusting items on income tax expense | |||||||||||
Net loss on divestitures and wind-down of operations | (21) | - | - | (21) | - | ||||||
Amortization of acquisition-related intangible assets | (6) | (7) | (7) | (26) | (28) | ||||||
Restructuring and other provisions | (19) | - | (49) | (19) | (49) | ||||||
Support costs for the Scene+ loyalty program | (35) | - | - | (35) | - | ||||||
Total impact of adjusting items on income tax expense | (81) | (7) | (56) | (101) | (77) | ||||||
Total impact of adjusting items on net income | 522 | 17 | 157 | 575 | 214 | ||||||
Impact of adjusting items on NCI related to restructuring and other provisions | (1) | - | (10) | (1) | (10) | ||||||
Total impact of adjusting items on net income attributable to equity | $ | 521 | $ | 17 | $ | 147 | $ | 574 | $ | 204 | |
Adjusted Results | |||||||||||
Net interest income | $ | 4,622 | $ | 4,676 | $ | 4,217 | $ | 18,115 | $ | 16,961 | |
Non-interest income | 3,365 | 3,123 | 3,470 | 13,662 | 14,291 | ||||||
Total revenue | 7,987 | 7,799 | 7,687 | 31,777 | 31,252 | ||||||
Provision for credit losses | 529 | 412 | 168 | 1,382 | 1,808 | ||||||
Non-interest expenses | 4,287 | 4,167 | 4,058 | 16,787 | 16,327 | ||||||
Income before taxes | 3,171 | 3,220 | 3,461 | 13,608 | 13,117 | ||||||
Income tax expense | 556 | 609 | 745 | 2,859 | 2,948 | ||||||
Net income | $ | 2,615 | $ | 2,611 | $ | 2,716 | $ | 10,749 | $ | 10,169 | |
Net income attributable to NCI | 39 | 54 | 80 | 259 | 341 | ||||||
Net income attributable to equity holders | $ | 2,576 | $ | 2,557 | $ | 2,636 | $ | 10,490 | $ | 9,828 | |
Net income attributable to preferred shareholders and other equity instrument holders | 106 | 36 | 78 | 260 | 233 | ||||||
Net income attributable to common shareholders | $ | 2,470 | $ | 2,521 | $ | 2,558 | $ | 10,230 | $ | 9,595 | |
Diluted earnings per share (in dollars) | $ | 2.06 | $ | 2.10 | $ | 2.10 | $ | 8.50 | $ | 7.87 | |
Impact of adjustments on diluted earnings per share (in dollars) | $ | 0.43 | $ | 0.01 | $ | 0.13 | $ | 0.48 | $ | 0.17 |
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 | |||||||||||||
Reported net income (loss) | $ | 1,170 | $ | 679 | $ | 363 | $ | 484 | $ | (603) | $ | 2,093 | |
Net income attributable to non-controlling interests in | |||||||||||||
subsidiaries (NCI) | - | 36 | 2 | - | - | 38 | |||||||
Reported net income attributable to equity holders | 1,170 | 643 | 361 | 484 | (603) | 2,055 | |||||||
Reported net income attributable to preferred shareholders and other equity instrument holders | 1 | 1 | - | - | 104 | 106 | |||||||
Reported net income attributable to common shareholders | $ | 1,169 | $ | 642 | $ | 361 | $ | 484 | $ | (707) | $ | 1,949 | |
Adjustments | |||||||||||||
Adjusting items impacting non-interest income and total revenue (Pre-tax) | |||||||||||||
Net loss on divestitures and wind-down of operations | - | - | - | - | 361 | 361 | |||||||
Adjusting items impacting non-interest expenses (Pre-tax) | |||||||||||||
Amortization of acquisition-related intangible assets | 6 | 9 | 9 | - | - | 24 | |||||||
Restructuring and other provisions | - | - | - | - | 85 | 85 | |||||||
Support costs for the Scene+ loyalty program | - | - | - | - | 133 | 133 | |||||||
Total non-interest expenses adjustments (Pre-tax) | 6 | 9 | 9 | - | 218 | 242 | |||||||
Total impact of adjusting items on net income before taxes | 6 | 9 | 9 | - | 579 | 603 | |||||||
Total impact of adjusting items on income tax expense | (2) | (2) | (2) | - | (75) | (81) | |||||||
Total impact of adjusting items on net income | 4 | 7 | 7 | - | 504 | 522 | |||||||
Impact of adjusting items on NCI related to restructuring and other provisions | - | - | - | - | (1) | (1) | |||||||
Total impact of adjusting items on net income attributable to | 4 | 7 | 7 | - | 503 | 521 | |||||||
Adjusted net income | $ | 1,174 | $ | 686 | $ | 370 | $ | 484 | $ | (99) | $ | 2,615 | |
Adjusted net income attributable to equity holders | $ | 1,174 | $ | 650 | $ | 368 | $ | 484 | $ | (100) | $ | 2,576 | |
Adjusted net income attributable to common shareholders | $ | 1,173 | $ | 649 | $ | 368 | $ | 484 | $ | (204) | $ | 2,470 | |
For the three months ended | |||||||||||||
Reported net income | $ | 1,213 | $ | 677 | $ | 378 | $ | 378 | $ | (52) | $ | 2,594 | |
Net income attributable to non-controlling interests in | |||||||||||||
subsidiaries (NCI) | - | 52 | 2 | - | - | 54 | |||||||
Reported net income attributable to equity holders | 1,213 | 625 | 376 | 378 | (52) | 2,540 | |||||||
Reported net income attributable to preferred shareholders and other equity instrument holders | 1 | - | 1 | 1 | 33 | 36 | |||||||
Reported net income attributable to common shareholders | $ | 1,212 | $ | 625 | $ | 375 | $ | 377 | $ | (85) | $ | 2,504 | |
Adjustments | |||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) | |||||||||||||
Amortization of acquisition-related intangible assets | 5 | 10 | 9 | - | - | 24 | |||||||
Total non-interest expenses adjustments (Pre-tax) | 5 | 10 | 9 | - | - | 24 | |||||||
Total impact of adjusting items on net income before taxes | 5 | 10 | 9 | - | - | 24 | |||||||
Total impact of adjusting items on income tax expense | (1) | (4) | (2) | - | - | (7) | |||||||
Total impact of adjusting items on net income | 4 | 6 | 7 | - | - | 17 | |||||||
Total impact of adjusting items on net income attributable to | 4 | 6 | 7 | - | - | 17 | |||||||
Adjusted net income | $ | 1,217 | $ | 683 | $ | 385 | $ | 378 | $ | (52) | $ | 2,611 | |
Adjusted net income attributable to equity holders | $ | 1,217 | $ | 631 | $ | 383 | $ | 378 | $ | (52) | $ | 2,557 | |
Adjusted net income attributable to common shareholders | $ | 1,216 | $ | 631 | $ | 382 | $ | 377 | $ | (85) | $ | 2,521 | |
For the three months ended | |||||||||||||
Reported net income | $ | 1,238 | $ | 607 | $ | 387 | $ | 502 | $ | (175) | $ | 2,559 | |
Net income attributable to non-controlling interests in | |||||||||||||
subsidiaries (NCI) | - | 79 | 2 | - | (11) | 70 | |||||||
Reported net income attributable to equity holders | 1,238 | 528 | 385 | 502 | (164) | 2,489 | |||||||
Reported net income attributable to preferred shareholders and other equity instrument holders | 4 | 3 | 1 | 2 | 68 | 78 | |||||||
Reported net income attributable to common shareholders | $ | 1,234 | $ | 525 | $ | 384 | $ | 500 | $ | (232) | $ | 2,411 | |
Adjustments | |||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) | |||||||||||||
Amortization of acquisition-related intangible assets | 6 | 10 | 9 | - | - | 25 | |||||||
Restructuring and other provisions | - | - | - | - | 188 | 188 | |||||||
Total non-interest expenses adjustments (Pre-tax) | 6 | 10 | 9 | - | 188 | 213 | |||||||
Total impact of adjusting items on net income before taxes | 6 | 10 | 9 | - | 188 | 213 | |||||||
Total impact of adjusting items on income tax expense | (2) | (3) | (2) | - | (49) | (56) | |||||||
Total impact of adjusting items on net income | 4 | 7 | 7 | - | 139 | 157 | |||||||
Impact of adjusting items on NCI related to restructuring and other provisions | - | - | - | - | (10) | (10) | |||||||
Total impact of adjusting items on net income attributable to | 4 | 7 | 7 | - | 129 | 147 | |||||||
Adjusted net income | $ | 1,242 | $ | 614 | $ | 394 | $ | 502 | $ | (36) | $ | 2,716 | |
Adjusted net income attributable to equity holders | $ | 1,242 | $ | 535 | $ | 392 | $ | 502 | $ | (35) | $ | 2,636 | |
Adjusted net income attributable to common shareholders | $ | 1,238 | $ | 532 | $ | 391 | $ | 500 | $ | (103) | $ | 2,558 |
(1) | Refer to Business Line Overview in the 2022 Annual Report to Shareholders. | ||||||||||||
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 year ended | |||||||||||||
Reported net income | $ | 4,763 | $ | 2,667 | $ | 1,565 | $ | 1,911 | $ | (732) | $ | 10,174 | |
Net income attributable to non-controlling interests in | |||||||||||||
subsidiaries (NCI) | - | 249 | 9 | - | - | 258 | |||||||
Reported net income attributable to equity holders | 4,763 | 2,418 | 1,556 | 1,911 | (732) | 9,916 | |||||||
Reported net income attributable to preferred shareholders and other equity instrument holders | 6 | 6 | 3 | 4 | 241 | 260 | |||||||
Reported net income attributable to common shareholders | $ | 4,757 | $ | 2,412 | $ | 1,553 | $ | 1,907 | $ | (973) | $ | 9,656 | |
Adjustments | |||||||||||||
Adjusting items impacting non-interest income and total revenue (Pre-tax) | |||||||||||||
Net loss on divestitures and wind-down of operations | - | - | - | - | 361 | 361 | |||||||
Adjusting items impacting non-interest expenses (Pre-tax) | |||||||||||||
Amortization of acquisition-related intangible assets | 22 | 39 | 36 | - | - | 97 | |||||||
Restructuring and other provisions | - | - | - | - | 85 | 85 | |||||||
Support costs for the Scene+ loyalty program | - | - | - | - | 133 | 133 | |||||||
Total non-interest expenses adjustments (Pre-tax) | 22 | 39 | 36 | - | 218 | 315 | |||||||
Total impact of adjusting items on net income before taxes | 22 | 39 | 36 | - | 579 | 676 | |||||||
Total impact of adjusting items on income tax expense | (6) | (11) | (9) | - | (75) | (101) | |||||||
Total impact of adjusting items on net income | 16 | 28 | 27 | - | 504 | 575 | |||||||
Impact of adjusting items on NCI related to restructuring and other provisions | - | - | - | - | (1) | (1) | |||||||
Total impact of adjusting items on net income attributable to | 16 | 28 | 27 | - | 503 | 574 | |||||||
Adjusted net income | $ | 4,779 | $ | 2,695 | $ | 1,592 | $ | 1,911 | $ | (228) | $ | 10,749 | |
Adjusted net income attributable to equity holders | $ | 4,779 | $ | 2,446 | $ | 1,583 | $ | 1,911 | $ | (229) | $ | 10,490 | |
Adjusted net income attributable to common shareholders | $ | 4,773 | $ | 2,440 | $ | 1,580 | $ | 1,907 | $ | (470) | $ | 10,230 | |
For the year ended | |||||||||||||
Reported net income | $ | 4,155 | $ | 2,155 | $ | 1,574 | $ | 2,075 | $ | (4) | $ | 9,955 | |
Net income attributable to non-controlling interests in | |||||||||||||
subsidiaries (NCI) | - | 332 | 9 | - | (10) | 331 | |||||||
Reported net income attributable to equity holders | 4,155 | 1,823 | 1,565 | 2,075 | 6 | 9,624 | |||||||
Reported net income attributable to preferred shareholders and other equity instrument holders | 20 | 21 | 11 | 15 | 166 | 233 | |||||||
Reported net income attributable to common shareholders | $ | 4,135 | $ | 1,802 | $ | 1,554 | $ | 2,060 | $ | (160) | 9,391 | ||
Adjustments | |||||||||||||
Adjusting items impacting non-interest expenses (Pre-tax) | |||||||||||||
Amortization of acquisition-related intangible assets | 22 | 45 | 36 | - | - | 103 | |||||||
Restructuring and other provisions | - | - | - | - | 188 | 188 | |||||||
Total non-interest expenses adjustments (Pre-tax) | 22 | 45 | 36 | - | 188 | 291 | |||||||
Total impact of adjusting items on net income before taxes | 22 | 45 | 36 | - | 188 | 291 | |||||||
Total impact of adjusting items on income tax expense | (6) | (13) | (9) | - | (49) | (77) | |||||||
Total impact of adjusting items on net income | 16 | 32 | 27 | - | 139 | 214 | |||||||
Impact of adjusting items on NCI related to restructuring and other provisions | - | - | - | - | (10) | (10) | |||||||
Total impact of adjusting items on net income attributable to | 16 | 32 | 27 | - | 129 | 204 | |||||||
Adjusted net income | $ | 4,171 | $ | 2,187 | $ | 1,601 | $ | 2,075 | $ | 135 | $ | 10,169 | |
Adjusted net income attributable to equity holders | $ | 4,171 | $ | 1,855 | $ | 1,592 | $ | 2,075 | $ | 135 | $ | 9,828 | |
Adjusted net income attributable to common shareholders | $ | 4,151 | $ | 1,834 | $ | 1,581 | $ | 2,060 | $ | (31) | $ | 9,595 |
(1) | Refer to Business Line Overview in the 2022 Annual Report to Shareholders. | ||||||||||||
Reconciliation of International Banking's reported and adjusted results and constant dollar results
International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported, adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. The tables below are computed on a basis that is different than the table "Impact of foreign currency translation" on page 4.
For the three months ended | For the year ended | ||||||||||||||||||||
($ millions) | |||||||||||||||||||||
(Taxable equivalent basis) | Reported results | Foreign exchange | Constant dollar results | Reported results | Foreign exchange | Constant dollar results | Reported results | Foreign exchange | Constant dollar results | ||||||||||||
Net interest income | $ | 1,759 | $ | (27) | $ | 1,786 | $ | 1,589 | $ | (33) | $ | 1,622 | $ | 6,625 | $ | 147 | $ | 6,478 | |||
Non-interest income | 660 | 20 | 640 | 728 | 28 | 700 | 2,993 | 119 | 2,874 | ||||||||||||
Total revenue | 2,419 | (7) | 2,426 | 2,317 | (5) | 2,322 | 9,618 | 266 | 9,352 | ||||||||||||
Provision for credit losses | 325 | (3) | 328 | 314 | (9) | 323 | 1,574 | 40 | 1,534 | ||||||||||||
Non-interest expenses | 1,295 | (16) | 1,311 | 1,259 | (19) | 1,278 | 5,254 | 105 | 5,149 | ||||||||||||
Income tax expense | 122 | 8 | 114 | 137 | 7 | 130 | 635 | 30 | 605 | ||||||||||||
Net income | $ | 677 | $ | 4 | $ | 673 | $ | 607 | $ | 16 | $ | 591 | $ | 2,155 | $ | 91 | $ | 2,064 | |||
Net income attributable to | |||||||||||||||||||||
non-controlling interest | |||||||||||||||||||||
in subsidiaries | $ | 52 | $ | - | $ | 52 | $ | 79 | $ | 3 | $ | 76 | $ | 332 | $ | 24 | $ | 308 | |||
Net income attributable to | |||||||||||||||||||||
equity holders of the Bank | $ | 625 | $ | 4 | $ | 621 | $ | 528 | $ | 13 | $ | 515 | $ | 1,823 | $ | 67 | $ | 1,756 | |||
Other measures | |||||||||||||||||||||
Average assets ($ billions) | $ | 209 | $ | (4) | $ | 213 | $ | 192 | $ | (3) | $ | 195 | $ | 194 | $ | 4 | $ | 190 | |||
Average liabilities ($ billions) | $ | 155 | $ | (3) | $ | 158 | $ | 146 | $ | (1) | $ | 147 | $ | 149 | $ | 5 | $ | 144 | |||
For the three months ended | For the year ended | ||||||||||||||||||||
($ millions) | July 31, 2022 | October 31, 2021 | October 31, 2021 | ||||||||||||||||||
(Taxable equivalent basis) | Adjusted results | Foreign exchange | Constant dollar adjusted results | Adjusted results | Foreign exchange | Constant dollar adjusted results | Adjusted results | Foreign exchange | Constant dollar adjusted results | ||||||||||||
Net interest income | $ | 1,759 | $ | (27) | $ | 1,786 | $ | 1,589 | $ | (33) | $ | 1,622 | $ | 6,625 | $ | 147 | $ | 6,478 | |||
Non-interest income | 660 | 20 | 640 | 728 | 28 | 700 | 2,993 | 119 | 2,874 | ||||||||||||
Total revenue | 2,419 | (7) | 2,426 | 2,317 | (5) | 2,322 | 9,618 | 266 | 9,352 | ||||||||||||
Provision for credit losses | 325 | (3) | 328 | 314 | (9) | 323 | 1,574 | 40 | 1,534 | ||||||||||||
Non-interest expenses | 1,285 | (17) | 1,302 | 1,249 | (19) | 1,268 | 5,209 | 102 | 5,107 | ||||||||||||
Income tax expense | 126 | 9 | 117 | 140 | 6 | 134 | 648 | 32 | 616 | ||||||||||||
Net income | $ | 683 | $ | 4 | $ | 679 | $ | 614 | $ | 17 | $ | 597 | $ | 2,187 | $ | 92 | $ | 2,095 | |||
Net income attributable to | |||||||||||||||||||||
non-controlling interest | |||||||||||||||||||||
in subsidiaries | $ | 52 | $ | 1 | $ | 51 | $ | 79 | $ | 3 | $ | 76 | $ | 332 | $ | 23 | $ | 309 | |||
Net income attributable to | |||||||||||||||||||||
equity holders of the Bank | $ | 631 | $ | 3 | $ | 628 | $ | 535 | $ | 14 | $ | 521 | $ | 1,855 | $ | 69 | $ | 1,786 |
Reconciliation of average total assets, core earning assets and core net interest income
Earning assets
Earning assets are defined as income generating assets which include deposits with financial institutions, trading assets, investment securities, investments in associates, securities borrowed or purchased under resale agreements, loans net of allowances, and customers' liability under acceptances.
Non-earning assets
Non-earning assets are defined as cash, precious metals, derivative financial instruments, property and equipment, goodwill and other intangible assets, deferred tax assets and other assets.
Core earning assets
Core earning assets are defined as interest-bearing deposits with financial institutions, investment securities and loans net of allowances. This is a non-GAAP measure. The Bank believes that this measure is useful for readers as it presents the main interest-generating assets of the personal and commercial businesses, and eliminates the impact of trading businesses.
Core net interest income
Core net interest income is defined as net interest income earned from core earning assets. This is a non-GAAP measure.
Net interest margin
Net interest margin is calculated as core net interest income for the business line divided by average core earning assets. Net interest margin is a non-GAAP ratio.
Average earning assets, average core earning assets and net interest margin by business line
Consolidated Bank
For the three months ended | For the year ended | |||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
($ millions) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Average total assets - Reported(1) | $ | 1,332,897 | $ | 1,295,165 | $ | 1,172,707 | $ | 1,281,708 | $ | 1,157,213 | ||||||
Less: Non-earning assets | 126,213 | 111,324 | 93,136 | 107,536 | 94,908 | |||||||||||
Average total earning assets(1) | $ | 1,206,684 | $ | 1,183,841 | $ | 1,079,571 | $ | 1,174,172 | $ | 1,062,305 | ||||||
Less: | ||||||||||||||||
Trading assets | 117,807 | 128,890 | 143,946 | 138,390 | 142,033 | |||||||||||
Securities purchased under resale agreements | ||||||||||||||||
and securities borrowed | 157,438 | 146,002 | 119,195 | 140,557 | 116,829 | |||||||||||
Other deductions | 69,343 | 62,710 | 55,380 | 62,531 | 51,750 | |||||||||||
Average core earning assets(1) | $ | 862,096 | $ | 846,239 | $ | 761,050 | $ | 832,694 | $ | 751,693 | ||||||
Net Interest Income - Reported | $ | 4,622 | $ | 4,676 | $ | 4,217 | $ | 18,115 | $ | 16,961 | ||||||
Less: Non-core net interest income | (122) | (53) | 50 | (185) | 190 | |||||||||||
Core net interest income | $ | 4,744 | $ | 4,729 | $ | 4,167 | $ | 18,300 | $ | 16,771 | ||||||
Net interest margin | 2.18 % | 2.22 % | 2.17 % | 2.20 % | 2.23 % |
(1) | Average balances represent the average of daily balances for the period. | |||||||||||||||
Canadian Banking
For the three months ended | For the year ended | |||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
($ millions) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Average total assets - Reported(1) | $ | 445,670 | $ | 437,269 | $ | 398,141 | $ | 429,528 | $ | 380,772 | ||||||
Less: Non-earning assets | 4,112 | 4,089 | 4,100 | 4,092 | 4,102 | |||||||||||
Average total earning assets(1) | $ | 441,558 | $ | 433,180 | $ | 394,041 | $ | 425,436 | $ | 376,670 | ||||||
Less: | ||||||||||||||||
Other deductions | 26,191 | 24,646 | 18,780 | 23,482 | 17,382 | |||||||||||
Average core earning assets(1) | $ | 415,367 | $ | 408,534 | $ | 375,261 | $ | 401,954 | $ | 359,288 | ||||||
Net Interest Income - Reported | $ | 2,363 | $ | 2,361 | $ | 2,082 | $ | 9,001 | $ | 8,030 | ||||||
Less: Non-core net interest income | - | - | - | - | - | |||||||||||
Core net interest income | $ | 2,363 | $ | 2,361 | $ | 2,082 | $ | 9,001 | $ | 8,030 | ||||||
Net interest margin | 2.26 % | 2.29 % | 2.20 % | 2.24 % | 2.23 % |
(1) | Average balances represent the average of daily balances for the period. | |||||||||||||||
International Banking
For the three months ended | For the year ended | |||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
($ millions) | 2022 | 2022 | 2021 | 2022 | 2021 | |||||||||||
Average total assets - Reported(1) | $ | 217,061 | $ | 209,076 | $ | 192,219 | $ | 206,550 | $ | 194,124 | ||||||
Less: Non-earning assets | 19,358 | 18,448 | 15,563 | 17,808 | 15,218 | |||||||||||
Average total earning assets(1) | $ | 197,703 | $ | 190,628 | $ | 176,656 | $ | 188,742 | $ | 178,906 | ||||||
Less: | ||||||||||||||||
Trading assets | 5,369 | 4,860 | 5,453 | 4,978 | 5,812 | |||||||||||
Securities purchased under resale agreements | ||||||||||||||||
and securities borrowed | 2,433 | 2,245 | - | 1,265 | - | |||||||||||
Other deductions | 7,087 | 6,616 | (2) | 6,118 | (2) | 6,781 | 6,581 | (2) | ||||||||
Average core earning assets(1) | $ | 182,814 | $ | 176,907 | $ | 165,085 | $ | 175,718 | $ | 166,513 | ||||||
Net Interest Income - Reported | $ | 1,806 | $ | 1,759 | $ | 1,589 | $ | 6,900 | $ | 6,625 | ||||||
Less: Non-core net interest income | (73) | (1) | 15 | (66) | 50 | |||||||||||
Core net interest income | $ | 1,879 | $ | 1,760 | $ | 1,574 | $ | 6,966 | $ | 6,575 | ||||||
Net interest margin | 4.08 % | 3.95 % | (2) | 3.78 % | (2) | 3.96 % | 3.95 % | (2) |
(1) | Average balances represent the average of daily balances for the period. | |||||||||||||||
(2) | Prior period has been restated to reflect the deduction of non-interest bearing deposits with financial institutions, to align with the Bank's definition. | |||||||||||||||
Return on equity
Return on equity is a profitability measure that presents the net income attributable to common shareholders as a percentage of average common shareholders' equity.
The Bank attributes capital to its business lines on a basis that approximates 10.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent within each business segment.
Return on equity for the business segments is calculated as a ratio of net income attributable to common shareholders of the business segment and the capital attributed.
Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders as a percentage of adjusted average common shareholders' equity.
Return on equity by operating segment
For the three months ended October 31, 2022 | |||||||||||||||||||||||||
Global | Global | ||||||||||||||||||||||||
Canadian | International | Wealth | Banking | ||||||||||||||||||||||
($ millions) | Banking | Banking | Management | and Markets | Other | Total | |||||||||||||||||||
Reported | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 1,169 | $ | 642 | $ | 361 | $ | 484 | $ | (707) | $ | 1,949 | |||||||||||||
Total average common equity(1) | 18,757 | 19,501 | 9,701 | 14,260 | 2,877 | 65,096 | |||||||||||||||||||
Return on equity | 24.7 % | 13.1 % | 14.8 % | 13.4 % | nm(2) | 11.9 % | |||||||||||||||||||
Adjusted(3) | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 1,173 | $ | 649 | $ | 368 | $ | 484 | $ | (204) | $ | 2,470 | |||||||||||||
Total average common equity(1) | 18,757 | 19,501 | 9,701 | 14,260 | 3,191 | 65,410 | |||||||||||||||||||
Return on equity | 24.8 % | 13.2 % | 15.0 % | 13.4 % | nm(2) | 15.0 % |
(1) | Average amounts calculated using methods intended to approximate the daily average balances for the period. | ||||||||||||||||||||||||
(2) | Not meaningful | ||||||||||||||||||||||||
(3) | Refer to Tables on pages 23-25. |
For the three months ended July 31, 2022 | For the three months ended October 31, 2021 | ||||||||||||||||||||||||
Global | Global | Global | Global | ||||||||||||||||||||||
Canadian | International | Wealth | Banking | Canadian | International | Wealth | Banking | ||||||||||||||||||
($ millions) | Banking | Banking | Management | and Markets | Other | Total | Banking | Banking | Management | and Markets | Other | Total | |||||||||||||
Reported | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 1,212 | $ | 625 | $ | 375 | $ | 377 | $ | (85) | $ | 2,504 | $ | 1,234 | $ | 525 | $ | 384 | $ | 500 | $ | (232) | $ | 2,411 | |
Total average common equity(1) | 18,433 | 19,085 | 9,631 | 13,488 | 4,301 | 64,938 | 16,686 | 17,304 | 9,342 | 12,779 | 8,624 | 64,735 | |||||||||||||
Return on equity | 26.1 % | 13.0 % | 15.5 % | 11.1 % | nm(2) | 15.3 % | 29.4 % | 12.0 % | 16.3 % | 15.5 % | nm(2) | 14.8 % | |||||||||||||
Adjusted(3) | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 1,216 | $ | 631 | $ | 382 | $ | 377 | $ | (85) | $ | 2,521 | $ | 1,238 | $ | 532 | $ | 391 | $ | 500 | $ | (103) | $ | 2,558 | |
Total average common equity(1) | 18,433 | 19,085 | 9,631 | 13,488 | 4,346 | 64,983 | 16,686 | 17,304 | 9,342 | 12,779 | 8,755 | 64,866 | |||||||||||||
Return on equity | 26.2 % | 13.1 % | 15.7 % | 11.1 % | nm(2) | 15.4 % | 29.4 % | 12.2 % | 16.6 % | 15.5 % | nm(2) | 15.6 % |
(1) | Average amounts calculated using methods intended to approximate the daily average balances for the period. | ||||||||||||||||||||||||
(2) | Not meaningful | ||||||||||||||||||||||||
(3) | Refer to Tables on pages 23-25. |
For the year ended October 31, 2022 | For the year ended October 31, 2021 | ||||||||||||||||||||||||
Global | Global | Global | Global | ||||||||||||||||||||||
Canadian | International | Wealth | Banking | Canadian | International | Wealth | Banking | ||||||||||||||||||
($ millions) | Banking | Banking | Management | and Markets | Other | Total | Banking | Banking | Management | and Markets | Other | Total | |||||||||||||
Reported | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 4,757 | $ | 2,412 | $ | 1,553 | $ | 1,907 | $ | (973) | $ | 9,656 | $ | 4,135 | $ | 1,802 | $ | 1,554 | $ | 2,060 | $ | (160) | $ | 9,391 | |
Total average common equity(1) | 18,105 | 18,739 | 9,576 | 13,328 | 5,442 | 65,190 | 16,388 | 17,377 | 9,301 | 12,450 | 8,311 | 63,827 | |||||||||||||
Return on equity | 26.3 % | 12.9 % | 16.2 % | 14.3 % | nm(2) | 14.8 % | 25.2 % | 10.4 % | 16.7 % | 16.5 % | nm(2) | 14.7 % | |||||||||||||
Adjusted(3) | |||||||||||||||||||||||||
Net income attributable to | |||||||||||||||||||||||||
common shareholders | $ | 4,773 | $ | 2,440 | $ | 1,580 | $ | 1,907 | $ | (470) | $ | 10,230 | $ | 4,151 | $ | 1,834 | $ | 1,581 | $ | 2,060 | $ | (31) | $ | 9,595 | |
Total average common equity(1) | 18,105 | 18,739 | 9,576 | 13,328 | 5,619 | 65,367 | 16,388 | 17,377 | 9,301 | 12,450 | 8,385 | 63,901 | |||||||||||||
Return on equity | 26.4 % | 13.0 % | 16.5 % | 14.3 % | nm(2) | 15.6 % | 25.3 % | 10.6 % | 17.0 % | 16.5 % | nm(2) | 15.0 % |
(1) | Average amounts calculated using methods intended to approximate the daily average balances for the period. | ||||||||||||||||||||||||
(2) | Not meaningful | ||||||||||||||||||||||||
(3) | Refer to Tables on pages 23-25. | ||||||||||||||||||||||||
Return on tangible common equity
Return on tangible common equity is a profitability measure that is calculated by dividing the net income attributable to common shareholders, adjusted for the amortization of intangibles (excluding software), by average tangible common equity. Tangible common equity is defined as common shareholders' equity adjusted for goodwill and intangible assets (excluding software), net of deferred taxes. This is a non-GAAP ratio.
Adjusted return on tangible common equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders as a percentage of adjusted average tangible common equity. This is a non-GAAP ratio.
For the three months ended | For the year ended | ||||||||||
($ millions) | October 31 | July 31 | October 31 | October 31 | October 31 | ||||||
2022 | 2022 | 2021 | 2022 | 2021 | |||||||
Reported | |||||||||||
Average common equity - Reported(1) | $ | 65,096 | $ | 64,938 | $ | 64,735 | $ | 65,190 | $ | 63,827 | |
Average goodwill(1)(2) | (9,140) | (9,157) | (9,248) | (9,197) | (9,424) | ||||||
Average acquisition-related intangibles (net of deferred tax)(1) | (3,773) | (3,791) | (3,851) | (3,803) | (3,895) | ||||||
Average tangible common equity(1) | $ | 52,183 | $ | 51,990 | $ | 51,636 | $ | 52,190 | $ | 50,508 | |
Net income attributable to common shareholders - Reported | $ | 1,949 | $ | 2,504 | $ | 2,411 | $ | 9,656 | $ | 9,391 | |
Amortization of acquisition-related intangible assets (after tax)(3) | 18 | 17 | 18 | 71 | 75 | ||||||
Net income attributable to common shareholders adjusted for amortization of | |||||||||||
acquisition-related intangible assets (after tax) | $ | 1,967 | $ | 2,521 | $ | 2,429 | $ | 9,727 | $ | 9,466 | |
Return on tangible common equity(4) | 15.0 % | 19.2 % | 18.7 % | 18.6 % | 18.7 % | ||||||
Adjusted(3) | |||||||||||
Adjusted net income attributable to common shareholders | $ | 2,470 | $ | 2,521 | $ | 2,558 | $ | 10,230 | $ | 9,595 | |
Average tangible common equity - adjusted(1) | $ | 52,497 | $ | 52,035 | $ | 51,767 | $ | 52,367 | $ | 50,582 | |
Return on tangible common equity - Adjusted(4) | 18.7 % | 19.2 % | 19.6 % | 19.5 % | 19.0 % |
(1) | Average amounts calculated using methods intended to approximate the daily average balances for the period. | ||||||||||
(2) | Includes imputed goodwill from investments in associates. | ||||||||||
(3) | Refer to Tables on pages 23-25. | ||||||||||
(4) | Calculated on full dollar amounts. | ||||||||||
Adjusted productivity ratio
Adjusted productivity ratio represents adjusted non-interest expenses as a percentage of adjusted total revenue. This is a non-GAAP ratio.
Management uses the productivity ratio as a measure of the Bank's efficiency. A lower ratio indicates improved productivity.
Adjusted operating leverage
This financial metric measures the rate of growth in adjusted total revenue less the rate of growth in adjusted non-interest expenses. This is a non-GAAP ratio.
Management uses operating leverage as a way to assess the degree to which the Bank can increase operating income by increasing revenue.
Adjusted effective tax rate
The adjusted effective tax rate is calculated by dividing adjusted income tax expense by adjusted income before taxes. This is a non-GAAP ratio.
Basis of preparation
These unaudited consolidated financial statements were prepared in accordance with IFRS as issued by
Forward-looking statements
From time to time, our public communications 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
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; the possible effects on our business of war or terrorist actions and unforeseen consequences arising from such actions; 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, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; 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; climate change and other environmental and social risks, including sustainability that may arise, including from the Bank's business activities; the occurrence of natural and unnatural catastrophic events and claims resulting from such events; inflationary pressures; Canadian housing and household indebtedness; 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 2022 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 2022 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2023 Priorities" 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
November 29, 2022
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 2023
Record and payment dates for common and preferred shares, subject to approval by the Board of Directors.
Record Date | Payment Date | |
January 4, 2023 | January 27, 2023 | |
April 4, 2023 | April 26, 2023 | |
July 5, 2023 | July 27, 2023 | |
October 3, 2023 | October 27, 2023 | |
Annual Meeting Date for Fiscal 2022
Shareholders are invited to attend the 191st Annual Meeting of Holders of Common Shares, to be held on April 4, 2023, at Scotiabank Centre, Scotia Plaza, 40 King Street West, 2nd Floor,
Duplicated Communication
Some registered holders of
Annual Financial Statements
Shareholders may obtain a hard copy of Scotiabank's 2022 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, November 29, 2022, at 8:00 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 (
Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from Tuesday, November 29, 2022 to Thursday January 5, 2023, by calling 905-694-9451 or 1-800-408-3053 (
Additional Information
Investors:
Financial Analysts, Portfolio Managers and other Institutional Investors:
Scotiabank
40 Temperance Street,
Telephone: (416) 775-0798
E-mail: investor.relations@scotiabank.com
Global Communications:
Scotiabank
40 Temperance Street,
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:
100 University Avenue, 8th Floor
Telephone: 1-877-982-8767
E-mail: service@computershare.com
Co-Transfer Agent (
WHEN SENDING OVERNIGHT:
Computershare
C/O: Shareholder Services
462 South 4th Street, Suite 1600
WHEN SENDING FIRST CLASS, REGISTERED, OR CERTIFIED MAIL:
Computershare
C/O: Shareholder Services
PO Box 505000
Tel: 1-800-962-4284
E-mail: service@computershare.com
For other shareholder enquiries, please contact the Corporate Secretary's Department:
Scotiabank
40 Temperance Street,
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
SOURCE Scotiabank
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