Scotiabank Trinidad and Tobago · PDF fileinsurance arm of the Scotiabank Group ......

Scotiabank Trinidad and Tobago Limited

Scotiabank Trinidad and Tobago LimitedInvestor Presentation January 6, 2006


AgendaAgenda

Opening Remarks Richard P YoungSales and Service Lawrence AquiComplementary Businesses

ScotiaLife Gillian Poon TingEfficiency Platform Richard P YoungHuman Resources Martin de GannesFinancial Presentation Adrian LezamaClosing Remarks Richard P Young

Questions & Answers

Driving sustained, profitable growthDriving sustained, profitable growthDriving sustained, profitable growth

Four Key Strategic Initiatives

Sales & ServiceSales & Service AcquisitionsAcquisitionsComplementaryBusinesses

ComplementaryBusinesses

ComplementaryBusinesses

EfficiencyPlatformEfficiencyPlatform

PeoplePeople


Sales & ServiceSales & Service

People

SBTT’s response to the challenges in our industry todaya new way to sell to and service our customers

needs-based, NOT product-basedlong-term and relationship-focusedmore capacity for Sales Officers to focus on relationship building

a structural platform and a new branch environment that allow staff to be more focused, productive, effective and successful

our foundation for sales and service success in the future



People

Tripled our capacity for sales

Embarked on a sophisticated data-mining process to deliver an effective Customer Call Program

Developed expertise in delivering Sales and Service to our key market segments

Equipped our Sales Officers to better understand our customers’ financial goals and objectives



People

Relationship SellingRelationship SellingProactive ContactPrepare for the AppointmentBuild RapportDiscover NeedsDiscuss SolutionsResolve ConcernsAsk for the BusinessFollow Through

Sales ProcessSales ProcessSales Process



People

Re-inforced via a number of different leadership and management activities which include:

Daily Huddles

Individual/Group Touchbases

Pipeline Meetings

Sales Management Meeting

Regular Reward and Recognition

and most importantly “COACHING”

Coaching, that is based on: Improving the customer’s experienceSales activitiesResults


Sales & Service Sales & Service Technology PlatformTechnology Platform

People

ITP

IBPTCS IAP

ITP: International Teller PlatformIAP: Interactive Application Processing

TCS: Transaction Control System



People

3-Dimensional Customer Interaction



People

Agenda Management

Sales and Activity Tracking

Electronic Distribution of Contact Lists

Sales Management Reporting

Total View

Contact Management



People

“To create, encourage and maintain a truly customer

centric relationship focused Sales and Service organisation”

SBTT’s Vision

11



PeoplePeople


Complementary BusinessComplementary BusinessScotiaLifeScotiaLife

13

People

RationaleExpand range of financial solutions available to customersEnhance value to customer and build brandDiversify sources of funding



14

People

Fully integrated bancassurance modelBank owns insurance company

Member of Scotia Insurance – the insurance arm of the Scotiabank Group

Sales are conducted via the bank’s distribution networkState-licensed and trained staffCustomer Relationship Management



15

People

Launched in April 2004Two product offerings

Universal life – blend of savings and insuranceDeferred annuity

Group Creditor Life insurance to be marketed from fiscal 2006



16

People

Exceeded business case profit projection which assumed losses until fifth year of operationSurpassed projection for results in first fiscal year due to higher than expected premium incomeContinued performance in second fiscal year



17

People

Road thus farSuccessful start at integrating savings and insurance into basket of products offered to customers



18

People

Going forwardIntroduce more risk-based products into portfolio to diversify sources of profit e.g. group creditor life plans to be launched in 2006Explore alternate delivery channels e.g. direct marketingContinue to build brand awareness


PeoplePeople



Efficiency PlatformEfficiency Platform

People

Overview –What is Shared Services?

A delivery model to enhance customer and employee experiences.A distinct business unit to handle most of the support functions that are critical to the overall success of the business.About enabling business units to focus on their key business and customer relationships.Common management of important support functions/services.Providing two types of services – transactional processing and consultative support.



People

Shared ServicesTransactional Processing

Centralised Retail Collections UnitProcessing Support Centre/ Cash Processing Unit

Consultative SupportSupport Services



People

The Benefits of Shared Services?

“Achieve productivity gains through efficient platforms and support structures”

Increase efficiencyProvide the most effective service by building

areas of expertise and sharing best practicesEnhance sales and service capabilitiesSimplify the management of operations.



PeoplePeople


Employee DevelopmentEmployee Development

Educational Programmes

Extensive Trainee Programmes

Succession Planning

Women’s Network


Employee Relations StrategyEmployee Relations Strategy

Town Hall Meetings

Feedback/Satisfaction/Service Surveys

Continuous Communication & Morale-

Building Strategies

Employee Action Teams

Annual Compensation Review


Total CompensationTotal Compensation

PAY Benefits

Learning and Development

Work Environment

$

+


Employer of ChoiceEmployer of Choice

A holistic approach to building a work

environment

Communicate using a variety of channels

A high value is placed on INTANGIBLES.

Commitment to training

Leadership development


FinancialPresentation


2005 2005 –– Record ResultsRecord Results

2005 Results vs. 2004

• EPS : 193.3¢ - up 11.65%

• ROE : 20.72% vs. 20.95%

• ROA : 2.81% vs. 2.71%

• Productivity : 45.55% vs. 46.93%

Strong Capital Ratio – 18.20%

Another Dividend Increase• + 6 cents to 80 cents

Other Achievements• Loan Growth : $938 million or

20.4% to $5.5 billion• $200 million bond issue


Consolidated Profit after Tax

'97 '98 '99 '00 '01 '02 '03 '04 '05

0

40

80

120

160

200

240$227.2 million

11.65%

8 – Year CAGR * : 12.64%

$ Million

* Compound Annual Growth Rate


Consolidated Assets

'97 '98 '99 '00 '01 '02 '03 '04 '05

0

1

2

3

4

5

6

7

8

9$8.7 billion

15.9%

8 - Year CAGR 8.41%

$ Billion



Strong Loan Growth

Retail Loans Commercial Loans0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

'04 '05

Mill

ions

($)

+ 27.7% or $682.9 million + 12.1% or $254.8 million


Mortgages35%

Business/Pers Serv8%Consumer

24%

Transport / DistriTrades12%

Construction Manuf

9%

Energy / Petro / Finacial Serv

12%

Group Concentration of Credit

Consumer25%

Mortgages27%

Energy / Petro / Finacial Serv

16%

Business/Pers Serv6%

Transport / Distrib Trades

14%

Construction / Manuf12%

Oct 31/04

Oct 31/05


Net Interest Income

'97 '98 '99 '00 '01 '02 '03 '04 '05

0

50

100

150

200

250

300

350

400

450$419.0 million

10.1%

8 – Year CAGR - 10.71%

$ Million



Non Interest Revenue

'97 '98 '99 '00 '01 '02 '03 '04 '05

0

20

40

60

80

100

120

140

160

180

$162.9 million

0.3%

8 – Year CAGR - 9.84%

$ Million



Composition of Non Interest Revenue

Oct. 31/04Total NIR$162.6 MM

Oct. 31/05 Total NIR $162.9 MM

Foreign Exchange24.65%

Retail Fees33.40%

Comm & Corp fees

41.95%

Foreign Exchange29.04%

Retail Fees36.57%

Comm & Corp fees

34.39%


Total Expenses before Loan Losses

'97 '98 '99 '00 '01 '02 '03 '04 '05

0

50

100

150

200

250

300$265.0 million

4.01%

$ Million


Non Performing Loans as a % of Total Loans (excluding Provision for loan loss)

1.09%

2.31%2.53%

2.78%

1.69%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

2001 2002 2003 2004 2005


Provision for loan loss as a % of Non Performing Loans

42.22%

18.74%

23.54%

28.05%

41.28%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

2001 2002 2003 2004 2005


Productivity Ratios

0%

50%

100%

150%

200%

250%

300%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Tim

es

TOTAL EXPS/TOTAL REV. PERSONNEL/NIR

82.01%

45.55%

Personnel

Total


Consistent Dividend Growth

31

40

4852 56

6470

7480

0

10

20

30

40

50

60

70

80

90

100

1997 1998 1999 2000 2001 2002 2003 2004 2005

8 – Year CAGR : 12.58%

cents

Bonus

4 : 7

8.1%



Performance Ratios

2.2%2.3% 2.3%

2.4%

2.7%

2.2%2.5%

2.6% 2.7% 2.8%

1.4%

1.6%

1.8%

2.0%

2.2%

2.4%

2.6%

2.8%

3.0%

2001 2002 2003 2004 2005

ScotiabankIndustry Average

Return on Assets


Performance Ratios

19.4% 18.7%15.7%

19.3% 19.6%

24.6% 24.7%22.8%

21.0% 20.7%

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

2001 2002 2003 2004 2005

ScotiabankIndustry Average

Return on Equity


Performance Ratios

130.0

153.0

165.6

173.1

193.3

40

60

80

100

120

140

160

180

200

2001 2002 2003 2004 2005

Earnings per Share

Cents


Return to ShareholdersShare price appreciation plus dividends reinvested from 2001

0%

50%

100%

150%

200%

2001 2002 2003 2004 2005

4 – year CAGR : 42.50%$ 42.38

$ 14.49


Comparative holding returns(Dividend growth plus Capital appreciation for 12 month period)

(2.1)

3.3

(28.0)

(2.2) (1.3)

26.1

-40

-30

-20

-10

0

10

20

30

12 M

th re

turn

s (%

)

Industry average being simple average of Banking institutions

traded on TTSE

Source : Republic Securities – Weekly market update (Dec 30th 2005)

Industry Average

FCIB

NCB (J’ca)

Republic Bank

RBTT Fin Holdings

SBTT


PeoplePeople



Questions?


The End

Scotiabank Trinidad and Tobago · PDF fileinsurance arm of the Scotiabank Group ......

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