Scotiabank Trinidad and Tobago : 15 Mar 2022 – Scotiabank Trinidad and Tobago Limited – Unaudited Financial Highlights for the period ended January 31st, 2022

Media Release

For the Quarter ended 31 January, 2022

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

Scotiabank Reports First Quarter Results

FIRST QUARTER HIGHLIGHTS

THREE MONTHS ENDED 31 JANUARY 2022

THREE MONTHS ENDED 31 JANUARY 2021

Income after Taxation

Dividends per share

Earnings per share

Return on equity

Return on assets

Productivity Ratio

$185 million	$146 million
65.0c	60.0c
105.2c	82.8c
17.27%	13.90%
2.68%	2.11%
36.5%	45.3%

Scotiabank Trinidad and Tobago Limited (The Group)	Deposits from Customers increasing by $493 million
realised Income after Tax of $185 million for the	over the prior quarter. The Group continues to exercise
quarter ended 31 January 2022, an increase of $39	prudent risk management, with the ratio of
million or 27% over the quarter ended 31 January	non-accrual loans to total loans improving to 1.90%
2021. This increase was due to a recovery in core	from 2.35% in 2021.
banking revenue combined with lower non-interest
expenses as we continue to implement our cost control	We remain committed to our operations within
strategies. Scotiabank continues to demonstrate its	Trinidad and Tobago, noting our significant and
financial strength with increased Return on Equity of	ongoing investment in our digital capabilities, which
17.27%, up from 13.90% and				position us to provide safe,
increased Return on Assets of	❝ We are cautiously		convenient banking optionality for
2.68%, up from 2.11% in the same		our customers. Additionally, our
period last year. Earnings per share	optimistic on the outlook	focus on increasing shareholder
increased to 105.2c from 82.8c.	for 2022 and beyond	value, coupled with assisting our
	given the progress made	communities are testament to our
Commenting on the results,	commitment.
by the country over the
Managing Director of Scotiabank
Trinidad and Tobago Limited,	last few months.	❝	We have achieved improved net
Gayle Pazos remarked:				promoter scores signalling better
				advocacy from customers for
"We delivered strong first quarter results, reflecting our	Scotiabank as Bank of Choice. We will continue to
continued resilience in today's dynamic world. In Q1/22,	listen to our customers and make meaningful changes
total revenues returned to pre-pandemic levels and we	to continually improve customer experience. We
achieved an over 10% reduction in our non-interest	thank our customers for all the support that they have
expense. Q1/22 saw recovery in our core business, with	given us during these challenging and changing
Loans to Customer growing by $560 million and	times.

Media Release

For the Quarter ended 31 January, 2022

We are committed to our Environmental, Social and Governance (ESG) mandate and are proud to have been recently recognised by the Sustainability, Environmental Achievement and Leadership (SEAL) awards for our environmentally responsible Paperless Initiative.

We are cautiously optimistic on the outlook for 2022 and beyond, given the progress made by the country over the last few months. In closing, we would like to thank our staff, shareholders and customers for all the support that you have given to us as we seek to improve our customer experience and build a sustainable business for the future."

GROUP FINANCIAL PERFORMANCE

Revenue

Total Revenue, comprising of Net Interest Income and Other Income, was $475 million for the period ended 31 January 2022, an increase of $34 million or 8% over the prior period in 2021. Net Interest Income for the period was $306 million, $12 million or 4% lower when compared to 2021, driven mainly by interest rate compression as a result of the continued low interest rate environment, offset partially by an increase in our loan portfolio.

Other Income for the same period was $169 million, $45 million or 37% more than the prior year as a result of recovery in core banking revenues.

REVENUE (TT$MM)

			+8% Y/Y
-4%Y/Y			475	441
306	317	+37% Y/Y
		169	124

NET INTEREST INCOME OTHER INCOME	TOTAL REVENUE
	31 January 2022		31 January 2021

Non-interest expenses and operating efficiency In the context of continued economic challenges, managing the efficiency of our operations remains a strategic priority. We continue to focus on utilising our digital platform to enhance customer experience and control our operating expenditure profile.

This continued focus has resulted in an operating efficiency ratio of 36.5% as at January 2022, improving from 45.3% in 2021.

NON-INTEREST EXPENSES AND

PRODUCTIVITY

36.5%	45.3%
173	200
31 January 2022	31 January 2021
Productivity

Credit quality

Net impairment losses on financial assets for the period ending 31 January 2022 was $17 million, a decrease of $6 million compared to the prior year. During the quarter, 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 continues to show improvement as demonstrated by the ratio of non-performing loans as a percentage of gross loans, improving from 2.35% in 2021 to 1.90% in 2022.

EXPECTED CREDIT LOSSES AND

CREDIT QUALITY

	2.35%
1.90%
17	23
31 January 2022	31 January 2021

Credit Quality

(Non-Performing Loans/Gross Loans)

Media Release

For the Quarter ended 31 January, 2022

Balance sheet

Total Assets were $27.7 billion as at 31 January 2022, increasing by $307 million or 1% when compared to 31 January 2021. Loans to Customers, the Bank's largest and interest earning asset, closed the year at $16.3 billion, reflecting an increase of $98 million or 1% compared to 2021. We continue to see recovery in economic activity as well as consumer demand and remain cautiously optimistic about the future prospects.

LOANS AND DEPOSITS (TT$BN)

	+0.3% Y/Y
+1% Y/Y
16.3	20.7	20.7
16.2

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

Investment securities and Treasury Bills stood at $7.2 billion as at 31 January 2022, an increase of $1.3 billion compared to the prior year. We continue to maintain a stringent liquidity policy, deploying surplus liquidity into interest earning securities to supplement lower loan interest income driven by interest rate compression.

As at 31 January 2022, Total Liabilities increased by $193 million to $23.4 billion or 1% compared to the prior year. This increase was due to an increase in Deposits from Customers of $61 million or 0.3% to $20.7 billion, and an increase in Policyholder Funds of $117 million or 7%.

POLICYHOLDERS' FUND (TT$BN)

Our Insurance Segment continues to demonstrate consistent growth and customers' increasing confidence in our product offerings.

Shareholders' equity

Total Shareholders' Equity closed the period at $4.3 billion, an increase of $115 million or 3% when compared to the balance as at 31 January 2021.

The Bank's capital adequacy ratio stood at 17.9% as at 31 January 2022, which continues to be significantly above the minimum capital adequacy ratio of 10% as specified by local regulators.

CAPITAL ADEQUACY

17.9%	18.6%
	Minimum
	ratio: 10.0%
31 January 2022	31 January 2021

Dividends

Despite the reduction in the dividend payout ratio in 2022, our ratio remains very healthy, where over 60% of the profits are returned to our shareholders.

Commensurate with the increase in profitability in 2022, total Dividends issued for Q1/22 increased from 60c per share in 2021 to 65c. Our dividend yields remain very healthy and reaffirm our commitment to maximise our total return to shareholders in the form of dividend payments as well as capital appreciation.

DIVIDENDS PAID (TT¢)

DIVIDEND PAYOUT RATIO

+7% Y/Y
1.7	1.6
31 January 2022	31 January 2021

0.65	0.60
31 January 2022	31 January 2021

62%	72%
31 January 2022	31 January 2021

Media Release

For the Quarter ended 31 January, 2022

DIVIDEND YIELD

3.61%	4.22%
31 January 2022	31 January 2021

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 13.9% to 17.3%, whilst Return on Assets increased from 2.1% to 2.7%, reflecting the effectiveness of the Group's strategies in improving profitability.

Students of Signal Hill Secondary with their laptops donated by Scotiabank through the Yahweh Foundation.

household incomes. This was the catalyst for Scotiabank's collaboration with, to date, 14 NGOs and 60 schools, helping provide 1,148 students with access to online learning.

RETURN ON EQUITY

+337 bps Y/Y

17.3%

13.9%

31 January 2022

31 January 2021

RETURN ON ASSETS

+57 bps Y/Y

2.7%

2.1%

31 January 2022

31 January 2021

SCOTIABANK IN THE COMMUNITY

In 2021, our community initiatives have benefitted more than 33,000 individuals and more than 24,000 youths through working with 99 charities, schools and community groups.

We wrapped up the year with donations of tablets and laptops to Secondary School students through collaborations with the Cotton Tree Foundation in Trinidad and the Yahweh Foundation in Tobago.

When the COVID-19 pandemic prompted the shift to online learning, students' education was significantly impacted - in particular, those who have been unable to acquire online devices due to already stretched

Ashley De La Rosa - Programme Supervisor, MOMS for Literacy, helps young students to develop their reading skills, using the MOMS Online Literacy Programme.

We also recognised that even with remote learning opportunities, for those with specialised learning needs, there may be challenges in finding appropriate resources and even affording those services.

We recently collaborated with a few NGOs to help close this gap. Literacy programmes being conducted by MOMS for Literacy and Adult Literacy Tutors Association (ALTA) are helping boys and girls with reading, comprehension and writing skills. Through a collaboration with the Joy of Living Resource Centre (JOL) in Tobago, differently abled learners were provided with devices with assistive technology to help

Media Release

For the Quarter ended 31 January, 2022

them develop language skills and assist those with speech disabilities to communicate.

The year 2022 started off with great news as we were recognised by the Sustainability, Environmental Achievement and Leadership (SEAL) Awards for our innovation, and commitment to sustainable business practices. We received this award for our Paperless Project. We saw an opportunity to improve our environmental impact by

embracing sustainable practices through the curtailment of paper usage throughout our organisation. This led to a reduction in print volumes by 3.6 million pages through creating a culture of awareness, responsibility and impact with our employees who have embraced the migration of paper-based processes to digital solutions that elevate our customers' overall experience.

We remain committed to continuing to explore programmes that move the needle, not just on environmental progress, but also other areas of ESG in order to maximise our positive impact, helping to build a better future for all stakeholders.