Scotiabank Trinidad and Tobago : 15 Jun 2022 – Scotiabank Trinidad and Tobago Limited – Unaudited Financial Statements for the period ended April 30th, 2022

Media Release

For the Quarter ended 30 April, 2022

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

Scotiabank reports 2nd quarter results

SECOND QUARTER HIGHLIGHTS

SIX MONTHS ENDED 30 APRIL 2022

SIX MONTHS ENDED 30 APRIL 2021

Income after Taxation

Dividends per share

Earnings per share

Return on Equity

Return on Assets

$356 million	$305 million
130c	120c
202c	173c
16.8%	14.5%
2.6%	2.2%

Scotiabank Trinidad and Tobago Limited (The	Customers increased by $1 billion over the last 6
Group) realized Income after Tax of $356 million for	months, demonstrating our strong sales and service
the period ended 30 April 2022, an increase of $52	culture as well as our customers' confidence in our
million or 17% over the same period ended 30 April	products. Our customers continue to embrace our
2021. Income after Tax for the quarter was $171	digital channels, with adoption improving year over
million, $12 million or 8% more than the quarter ending	year leading to a reduction in our non-interest
30 April 2021. Our improvement over the prior year is	expenses base by 4% and improvement in our
driven by an increase in core banking activity resulting	productivity ratio to under 40% in 2022.
in increased revenues, coupled with
continued focus on operational	For the 3rd		For the 3rd consecutive year,
efficiency. The improvement in		Scotiabank was named Trinidad
profitability has resulted in an increased	❝consecutive year,		and Tobago's Best Bank 2022 by
Return on Equity from 14.5% in 2021 to	Scotiabank was		Global Finance Magazine,
16.8% in 2022 and an increase in Return		underscoring the hard work and
named Trinidad and
on Assets from 2.2% in 2021 to 2.6% in	dedication of our management
2022.	Tobago's Best Bank	team and staff.
Commenting on the results, Managing	2022 by Global	❝	In closing, we would like to thank
Finance Magazine
Director of Scotiabank Trinidad and	our staff, shareholders and
Tobago Limited, Gayle Pazos remarked:				customers for all the support that
				you have given to us as we seek to
"Our strong interim results continue to illustrate the	improve our customer experience and continue to build
strength and resilience of the Bank. Loans to		a sustainable business for the future."

Media Release

For the Quarter ended 30 April, 2022

GROUP FINANCIAL PERFORMANCE

Revenue

Total Revenue, comprising of Net Interest Income and Other Income was $952 million for the period ended 30 April 2022, an increase of $84 million or 10% over last year. Net Interest Income for the period was $599 million, $21 million or 3% lower when compared to the same period last year driven by a minor decline in the loan portfolio during 2021 coupled with continued margin compression due to competitive pricing pressures. Core banking revenues continue to recover, driving Other Income growth of $105 million or 42% to $353 million in 2022 as we note increased activity in both retail and commercial segments.

REVENUE (TT$MM)

Credit quality

Net impairment losses on financial assets for the period ending 30 April 2022 was $45 million, an increase of $11 million or 31% over the prior year. During the year we have seen improvement in delinquency trends as the economy has gradually reopened, leading to a reduction in expected retail credit losses in 2022. Our credit quality has improved with the ratio of non-performing loans as a percentage of gross loans reducing from 2.3% in 2021 to 1.9% in 2022.

EXPECTED CREDIT LOSSES AND

CREDIT QUALITY

2.26%

1.86%

					+10% Y/Y
-3%Y/Y					952	869
599	621		+42% Y/Y
			353	248
NET INTEREST INCOME	OTHER INCOME	TOTAL REVENUE
30 April 2022	30 April 2021

Non-interest expenses and operating efficiency In the context of continued rising price inflation, managing The Group's operational efficiency remains a strategic priority. We continue to focus on utilizing our digital platform to enhance customer experience and control our operating expenditure profile and this has resulted in our productivity ratio improving to 38% as at 30 April 2022 compared to 43.0% in 2021.

NON-INTEREST EXPENSES AND

PRODUCTIVITY

37.9%	43.0%
361	374
30 April 2022	30 April 2021
Productivity

45	34

30 April 2022		30 April 2021

Credit Quality

(Non-Performing Loans/Gross Loans)

Balance sheet

Total Assets were $27.9 billion as at 30 April 2022, increasing by $280 million or 1% compared to the prior year. Loans to Customers, the Bank's largest interest earning asset, increased by $628 million or 4% compared to 30 April 2021 and over $1 billion over the last six months. We continue to see recovery in economic activity driven by increased consumer demand and increased commercial activity.

LOANS AND DEPOSITS (TT$BN)

	+0.8% Y/Y
+4% Y/Y
16.7	20.9	20.7
16.1

LOANS TO CUSTOMERS	DEPOSITS FROM CUSTOMERS
30 April 2022		30 April 2021

Media Release

For the Quarter ended 30 April, 2022

Investment securities and Treasury Bills stood at $7 billion as at 30 April 2022, an increase of $800 million over the prior year. We continue to maintain sufficient liquidity to meet our funding needs whilst also seeking to maximise our return on our investment portfolio to increase our net interest income.

As at 30 April 2022, Total Liabilities increased by $236 million to $23.6 billion or 1% over last year. This increase was due to an increase in Deposits from Customers of $167 million or 1% to $20.9 billion and an increase in Policyholder Funds of $96 million or

6%. The growth in our insurance segment reaffirms customers' continued confidence in our brand coupled with the deepening of relationships with our customers as we offer products to suit different needs.

Dividends

We continue to provide a very healthy return and capital appreciation for our shareholders. A dividend of 65c has been approved for a total of 130c, an increase of 8% over the same period last year. Our dividend payout ratio of 64% remains within industry ranges and although we have seen a reduction in the dividend yield to 3.22%, our dividends combined with appreciation in the share price of 48% since April 2021, continue to reaffirm our commitment to maximize our total return to shareholders.

DIVIDEND YIELD

SHARE $80.66	$54.60
PRICE

POLICYHOLDERS' FUND (TT$BN)

+6% Y/Y
1.7	1.6
30 April 2022	30 April 2021

Shareholders' equity

Total Shareholders' Equity closed the period at $4.3 billion, an increase of $45 million or 1% when compared to the balance as at 30 April 2021. The Bank's capital adequacy ratio stood at 17.5% as at 30 April 2022, which continues to be significantly above the minimum capital adequacy ratio under new BASEL II regulations of 10%.

3.22%	4.40%
30 April 2022	30 April 2021

DIVIDENDS PAID (TT¢)

+8% Y/Y
1.30	1.20
30 April 2022	30 April 2021

CAPITAL ADEQUACY

DIVIDEND PAYOUT RATIO

17.5%	18.4%
	Minimum
	ratio: 10.0%
30 April 2022	30 April 2021

64%	69%
30 April 2022	30 April 2021

Media Release

For the Quarter ended 30 April, 2022

Return on equity and return on assets Improvement in profitability has led to increased return on equity and return on assets. Return on Equity increased from 14.5% to 16.8% whilst Return on Assets increased from 2.2% to 2.6% reflecting the effectiveness of the Group's strategies in improving profitability.

For the past 68 years, the Princess Elizabeth Home for Handicapped Children (PEHHC) has helped provide opportunities to thousands of physically challenged children through the provision of surgical treatment, rehabilitation and education, so that they can lead fulfilling and productive lives.

RETURN ON EQUITY

+225 bps Y/Y

16.8%

14.5%

30 April 2022

30 April 2021

RETURN ON ASSETS

+38 bps Y/Y

2.6%

2.2%

30 April 2022

30 April 2021

Now, with a $1 million donation from the Scotiabank Trinidad and Tobago Foundation towards its new Orthopaedic Wing and Operating Theatre, the PEHHC can support medical treatment for even more children in need, especially those from low-income households. We are truly happy to be a part of PEHHC's dedication to ensuring that every child in need of their services gets the support required, helping to shape their lives in a positive way.

The Bank, as part of its Environmental, Social and Governance (ESG) strategy aims to educate employees on some of the most pressing environmental issues we face and raise awareness of the opportunities that exist in our day-to-day lives to make more sustainable

SCOTIABANK IN THE COMMUNITY

Our community initiatives thus far for 2022 have benefitted 16,062 individuals and 11,305 youths through working with 77 charities, schools and community groups.

The Hon. Terrence Deyalsingh - Minister of Health and Roxane De Freitas - Chair, Scotiabank Foundation unveil the Scotiabank plaque at the Opening Ceremony of Princess Elizabeth Home's new Orthopaedic Wing and Operating Theatre.

choices.

A Scotiabank volunteer hands over seedlings to a member of the Gasparillo community.

In keeping with this, our employees joined a community seedling distribution drive in celebration of Earth

Day 2022, helping distribute 32,000 seedlings in collaboration with SURE Foundation.

Media Release

For the Quarter ended 30 April, 2022

With the resumption of sporting activities as COVID-19 restrictions were lifted, we are very pleased to partner once again with the Trinidad and Tobago Cricket Board for the Scotiabank NextGen Cricket Development Programme. We are committed to developing our young cricketers, on and off the field. In addition to the tournament aspect, this programme also provides workshops to under-13 and under-15 cricketers focused on their physical, intellectual, social, emotional and spiritual development.

Some of the action on the field during the opening match of the Scotiabank NextGen U-13 Tournament.