stockbrokers’ meeting 2010 -...
TRANSCRIPT
Stockbroker’s Meeting, Monday 13 December 2010
Stockbrokers’ Meeting 2010Scotiabank’s Hospitality Suite
Queen’s Park Oval
Monday 13 December 2010
Stockbroker’s Meeting, Monday 13 December 2010
Welcome, Opening Remarks Mr. Richard P. Young
and Introduction of Team Managing Director
Scotiabank Trinidad and Tobago Limited
Financials Mr. Adrian Lezama
Assistant General Manager, Finance
Scotiabank Trinidad and Tobago Limited
Performance Review Mr. Richard P. Young
Questions
Closing Remarks Mr. Richard P. Young
Refreshments
Agenda
Stockbroker’s Meeting, Monday 13 December 2010
Stockbrokers’ Meeting 2010Scotiabank’s Hospitality Suite
Queen’s Park Oval
Monday 13 December 2010
Mr. Richard P. YoungManaging Director
Scotiabank Trinidad and
Tobago Limited
Stockbroker’s Meeting, Monday 13 December 2010
Stockbrokers’ Meeting 2010Scotiabank’s Hospitality Suite
Queen’s Park Oval
Monday 13 December 2010
Financials –Mr. Adrian Lezama
Assistant General ManagerFinance
Scotiabank Trinidad and
Tobago Limited
Stockbroker’s Meeting, Monday 13 December 2010
Strong Balance Sheet
10 Year CAGR 11.48%
0 2 4 6 8 10 12 14 16
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
$’Billion
* Total Assets
Stockbroker’s Meeting, Monday 13 December 2010
Loan Growth
0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00
Commercial Loans
Retail Loans
'10
'09
$6.2B
0.3%
$4.1B
0.9%
$’Billion
Stockbroker’s Meeting, Monday 13 December 2010
Net Interest and Non-Interest Revenue
10 Year CAGR 11.72%
0 200 400 600 800 1000 1200 1400
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
Non-Interest Revenue Net Interest Income Total Net Income
$1,250M
10.2%
$’Millions
Stockbroker’s Meeting, Monday 13 December 2010
Total Expenses before Loan Losses
10 Year CAGR 11.11%
0 100 200 300 400 500 600
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10 $515.3M
11.41%
$’Millions
Stockbroker’s Meeting, Monday 13 December 2010
Credit Quality
1.09% 0.80% 0.84%2.22% 2.80%
31.59%
41.83%
44.84%43.25%
41.37%
2.31%2.53% 2.78% 1.69% 1.28%
18.74%
23.54%
28.05%
41.28%42.22%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
NAL/ Total Loans LLP/NAL
Stockbroker’s Meeting, Monday 13 December 2010
Performance Ratios
2.15%2.27%
2.30%
2.44%
2.70%2.64%
2.90% 2.92%
2.63%2.48%
2.65%2.85%
2.92%3.07%3.16%
3.70%3.58%
3.34%
3.00% 3.17%
1.4%
1.9%
2.4%
2.9%
3.4%
3.9%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Scotiabank
Industry Average
Return on Assets
Stockbroker’s Meeting, Monday 13 December 2010
Performance Ratios
19.41%18.71%
15.70%
19.30% 19.55%
21.54%
23.89%
22.16%
20.20%18.25%
24.60% 24.70%22.75%
20.95%20.72%
25.05% 25.39% 25.38%
22.86%
22.04%
15.0%
17.0%
19.0%
21.0%
23.0%
25.0%
27.0%
29.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Scotiabank
Industry Average
Return on Equity
Stockbroker’s Meeting, Monday 13 December 2010
Earnings per Share
86.7102.3
110.4
115.4128.9
178.7
210.4
244.9
258 288.8
40
90
140
190
240
290
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Cents
Stockbroker’s Meeting, Monday 13 December 2010
Price to Earnings Ratio
11.2
13.1
16.49
18.2
20.4
14.16
13.57 12.66
11.6412.67
5
10
15
20
25
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Cents
Stockbroker’s Meeting, Monday 13 December 2010
Consistent Dividend Growth
10 Year CAGR 12.24%
3537
4347 49
53
70
84
96 100
110
0
10
20
30
40
50
60
70
80
90
100
110
120
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Bonus
2 : 1
10.0%
Cents
Stockbroker’s Meeting, Monday 13 December 2010
0%
50%
100%
150%
200%
250%
300%
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Return to Shareholders
Share price appreciation plus dividends received
10 year CAGR 12.24%
Stockbroker’s Meeting, Monday 13 December 2010
Stockbrokers’ Meeting 2010Scotiabank’s Hospitality Suite
Queen’s Park Oval
Monday 13 December 2010
Stockbroker’s Meeting, Monday 13 December 2010
To be the best at helping
customers become financially
better off by providing relevant
solutions to their unique needs.
Core Purpose
Stockbroker’s Meeting, Monday 13 December 2010
�Integrity
�Respect
�Insight
�Commitment
�Spirit
Core Values
Stockbroker’s Meeting, Monday 13 December 2010
Proud to serve our
Communities
Customer comes first
Team is everything
We empower our people
The Scotia Way
Stockbroker’s Meeting, Monday 13 December 2010
�Revenue Growth
�Capital Management
�Leadership
�Prudent Risk Management
�Cost Containment
Our Overall Strategy
Stockbroker’s Meeting, Monday 13 December 2010
Strategic Initiatives
Sales & ServiceSales & Service AcquisitionsAcquisitionsComplementaryBusinesses
ComplementaryBusinesses
ComplementaryBusinesses
EfficiencyPlatformEfficiencyPlatform
PeoplePeople
C U S T O M E RC U S T O M E R
Driving sustained, profitable
growth
Stockbroker’s Meeting, Monday 13 December 2010
Revenue Growth
10 Year CAGR 11.72%
0 200 400 600 800 1000 1200 1400
'00
'01
'02
'03
'04
'05
'06
'07
'08
'09
'10
Non-Interest Revenue Net Interest Income Total Net Income
$1,250M
10.2%
$’Millions
Stockbroker’s Meeting, Monday 13 December 2010
Complementary Business
�ScotiaLife Trinidad and Tobago Limited
�Scotiatrust and Merchant Bank Trinidad and Tobago Limited
Strong contributions by:
Stockbroker’s Meeting, Monday 13 December 2010
Capital Management
Return on Assets Return on Equity
Capital Adequacy Ratio
Scotiabank 3.17%Industry 2.48%
Scotiabank 22.04%Industry 18.25%
Scotiabank 27.42%Minimum Regulatory 8.00%
Stockbroker’s Meeting, Monday 13 December 2010
Leadership – Core priority and key success factor
Employee Development in various forms:
� Suite of training programmes – on-line & classroom
(82% in 2010)
� Fundamentals of Coaching Excellence
� Mentorship Programme
� Employee Development Plans for 100% of staff
� Scotiabank Women’s Network
� Launch of Regional Caribbean Associate Trainee Programme
Stockbroker’s Meeting, Monday 13 December 2010
Communication - Town Hall
One Team One Goal
Open Two-Way Communication
Staying Connected to Staff
Emotional Bonding
Strategy Sharing
Goal Alignment
Sharing the Vision
Employee Engagement
Growth Minimize Turnover
Stockbroker’s Meeting, Monday 13 December 2010
ONLY BANK TO RECEIVE THESE AWARDS:
� 2010 Bank of the Year – The Banker (also in 2008)
� 2010 Best Emerging Bank Award –
Global Finance
� 2010 Best Internet Bank Award – Global Finance
� 2010 Champion Employer of the Year Award
(also in 2008)
� 2009 Winner National Safety Awards
� 2009 Team Finalist – Corporate Social Responsibility –
Recognizing the Value of People
� Top 5 Company for Female Executives
Our External Reputation
Stockbroker’s Meeting, Monday 13 December 2010
Corporate Social Responsibility
• SBTT Foundation
• Set up in 2008 to manage a philanthropic programme for the Scotiabank
Group
• Allocated TT$15 million over the next 5 years towards children’s wellbeing,
Women Against Breast Cancer Programme, Sport & Culture and General
Philanthropy
• Scotiabank Bright Future Programme
• UWI Scholarships, Kiddy Cricket, Annual Schools' Table Tennis Tournament,
Youth Public Relations Campaign
• CSR Branch Campaign / Youth Initiatives in Communities – provides funding
to all Bank Branches to do a project of their choice in their communities
Stockbroker’s Meeting, Monday 13 December 2010
Prudent Risk
1.09% 0.80% 0.84%2.22% 2.80%
31.59%
41.83%
44.84%43.25%
41.37%
2.31%2.53% 2.78% 1.69% 1.28%
18.74%
23.54%
28.05%
41.28%42.22%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
50.0%
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
NAL/ Total Loans LLP/NAL
Stockbroker’s Meeting, Monday 13 December 2010
Productivity Ratio
0%
50%
100%
150%
200%
250%
300%
1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Tim
es
TOTAL EXPS/TOTAL REV. PERSONNEL/NIR
57.96%Personnel
42.21%
Total Exps.
Cost Containment
Stockbroker’s Meeting, Monday 13 December 2010
Centres of Excellence
�Processing Support Centre
�Lending Support Unit
�Business Support Centre
�Centralised Retail Collections Unit
�Cash Processing Unit
Cost Containment – Shared Services
Increased Efficiency
Regional hub for Caribbean South
Stockbroker’s Meeting, Monday 13 December 2010
�Revenue Growth
�Capital Management
�Leadership
�Prudent Risk Management
�Cost Containment
Our Overall Strategy