DBRS Releases Report on Bank of Nova Scotia

DBRS has today released a report on Bank of Nova Scotia (Scotiabank, BNS or the Bank) and its related entities, the supports the recent confirmation of their ratings, including Scotiabank’s Deposits & Senior Debt at AA and Short-Term Instruments at R-1 (high). All trends are Stable.

The ratings are supported by Scotiabank’s diversified earnings profile (Canadian Banking, International Banking, Global Wealth Management and Scotia Capital), strong cost-control culture and credit risk management. Three years ago, the contribution of its International Banking segment was starting to reach 37% to 38% of net income, which was in excess of its one-third target. In order to rebalance the earnings profile, the Bank invested more heavily in other businesses, particularly in the under-represented Global Wealth Management segment. As a result, BNS’s earnings profile is more balanced today. Recognizing that International Banking has the highest growth potential, DBRS expects Scotiabank will continue to make investments in other segments to sustain this balance.

Today’s report and the July 14, 2011, press release are available at www.dbrs.com or by contacting us at info@dbrs.com.

Note:
All figures are in Canadian dollars unless otherwise noted.