Scotiabank is a diversified financial services institution that provides a wide range of financial products and services to retail, commercial and corporate customers around the world. The Bank’s businesses are grouped into four business lines: Canadian Banking, International Banking, Global Banking and Markets and Global Wealth Management. Other smaller business segments are included in the Other segment. The results of these business segments are based upon the internal financial reporting systems of the Bank. The accounting policies used in these segments are generally consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 3. Notable accounting measurement differences are:

•

tax normalization adjustments related to the gross-up of income from associated corporations. This adjustment normalizes the effective tax rate in the divisions to better present the contribution of the associated companies to the divisional results.

•

the grossing up of tax-exempt net interest income and non-interest income to an equivalent before-tax basis for those affected segments.

These differences in measurement enable comparison of net interest income and non-interest income arising from taxable and tax-exempt sources.

Changes to operating segments effective November 1, 2019

Effective November 1, 2019, Global Wealth Management became a fourth business segment. The Canadian and International businesses of Global Wealth results that were previously included in Canadian Banking’s and International Banking’s results, respectively, are included in Global Wealth Management results. The historical comparative segment financial information has been restated to reflect this realignment. The restated historical segment financial information of Canadian Banking, International Banking and Other did not impact the Bank’s previously reported consolidated financial information.

The aggregate number of cash-generating units (CGUs) for the purposes of goodwill impairment assessment as of November 1, 2019 has increased to 5 (October 31, 2019 – 4 CGUs) with the creation of the new Global Wealth Management CGU

(GWM-CGU).

This has resulted in the allocation of $3.4 billion of goodwill related to the wealth business from the Canadian Banking CGU to the

GWM-CGU.

As at November 1, 2019, the Bank has determined that goodwill allocated to

GWM-CGU

is not impaired.

Scotiabank’s results, and average assets and liabilities, allocated by these operating segments, are as follows:


For the year ended October 31, 2021
Taxable equivalent basis ($ millions)	Canadian Banking		International Banking		Global Wealth Management		Global Banking and Markets			Other (1)(2)			Total
Net interest income (3)	$	8,030	$	6,625	$	628	$	1,436		$	242		$	16,961
Non-interest income (4)(5)		2,868		2,993		4,752		3,587			91			14,291
Total revenues		10,898		9,618		5,380		5,023			333			31,252
Provision for credit losses		333		1,574		2		(100	)		(1	)		1,808
Depreciation and amortization		618		517		178		156			42			1,511
Non-interest expenses		4,333		4,737		3,077		2,302			658			15,107
Income tax expense		1,459		635		549		590			(362	)		2,871
Net income	$	4,155	$	2,155	$	1,574	$	2,075		$	(4	)	$	9,955
Net income attributable to non-controlling interests in subsidiaries		–		332		9		–			(10	)		331
Net income attributable to equity holders of the Bank		4,155		1,823		1,565		2,075			6			9,624
Represented by:
Net income attributable to equity holders of the Bank – relating to divested operations (6)		–		7		–		–			–			7
Net income attributable to equity holders of the Bank – relating to operations other than divested operations		4,155		1,816		1,565		2,075			6			9,617
Average assets ($ billions)		381		194		29		401			152			1,157
Average liabilities ($ billions)		313		149		45		385			193			1,085

(1)

Includes all other smaller operating segments and corporate adjustments, such as the elimination of the

tax-exempt

income

gross-up

reported in net interest income and

non-interest

income and provision for income taxes for the year ended October 31, 2021 amounting to $310

to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments.

(2)	Net income attributable to equity holders includes restructuring and other provisions of $129 (pre-tax $188).

(3)	Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(4)

Card revenues and Banking services fees are mainly earned in Canadian and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets.

(5)	Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $87; International Banking – $206; Global Wealth Management – $17 and Other – $29.

(6)	Refer to Note 37 for closed divestitures impacting the current year.


For the year ended October 31, 2020
Taxable equivalent basis ($ millions)	Canadian Banking		International Banking		Global Wealth Management		Global Banking and Markets		Other (1)(2)			Total
Net interest income (3)	$	7,838	$	7,603	$	575	$	1,435		$ (131	)	$	17,320
Non-interest income (4)(5)		2,461		3,207		4,009		3,947		392			14,016
Total revenues		10,299		10,810		4,584		5,382		261			31,336
Provision for credit losses		2,073		3,613		7		390		1			6,084
Depreciation and amortization		633		525		170		156		62			1,546
Non-interest expenses		4,178		5,418		2,708		2,317		689			15,310
Income tax expense		879		182		437		564		(519	)		1,543
Net income	$	2,536	$	1,072	$	1,262	$	1,955	$	28		$	6,853
Net income attributable to non-controlling interests in subsidiaries		–		92		10		–		(27	)		75
Net income attributable to equity holders of the Bank		2,536		980		1,252		1,955		55			6,778
Represented by:
Net income attributable to equity holders of the Bank – relating to divested operations (6)		–		70		–		–		–			70
Net income attributable to equity holders of the Bank – relating to operations other than divested operations		2,536		910		1,252		1,955		55			6,708
Average assets ($ billions)		359		206		26		412		158			1,161
Average liabilities ($ billions)		277		155		39		379		240			1,090

(1)

Includes all other smaller operating segments and corporate adjustments, such as the elimination of the

tax-exempt

income

gross-up

reported in net interest income and

non-interest

income and provision for income taxes for the year ended October 31, 2020 amounting to $275 to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments.

(2)	Net income attributable to equity holders includes Net gain on divestitures of $354 (pre-tax $298).

(3)	Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(4)

(5)	Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $56; International Banking – $243; Global Wealth Management – $13 and Other – $(70).

(6)	Refer to Note 37 for closed divestitures impacting the current year.


For the year ended October 31, 2019
Taxable equivalent basis ($ millions)	Canadian Banking		International Banking		Global Wealth Management		Global Banking and Markets			Other (1)(2)			Total
Net interest income (3)	$	7,848	$	8,353	$	564	$	1,396		$	(984)		$	17,177
Non-interest income (4)(5)		2,616		4,366		3,937		3,084			(146	)		13,857
Total revenues		10,464		12,719		4,501		4,480			(1,130	)		31,034
Provision for credit losses		972		2,076		–		(22	)		1			3,027
Depreciation and amortization		441		379		126		91			16			1,053
Non-interest expenses		4,331		6,217		2,779		2,372			(15	)		15,684
Income tax expense		1,232		909		412		505			(586	)		2,472
Net income	$	3,488	$	3,138	$	1,184	$	1,534		$	(546	)	$	8,798
Net income attributable to non-controlling interests in subsidiaries		–		373		18		–			17			408
Net income attributable to equity holders of the Bank		3,488		2,765		1,166		1,534			(563	)		8,390
Represented by:
Net income attributable to equity holders of the Bank – relating to divested operations (6)		–		655		17		–			–			672
Net income attributable to equity holders of the Bank – relating to operations other than divested operations		3,488		2,110		1,149		1,534			(563	)		7,718
Average assets ($ billions)		340		201		25		372			118			1,056
Average liabilities ($ billions)		255		153		32		304			243			987

(1)

Includes all other smaller operating segments and corporate adjustments, such as the elimination of the

tax-exempt

income

gross-up

reported in net interest income and

non-interest

income and provision for income taxes for the year ended October 31, 2019 amounting to $181 to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments.

(2)	Net income attributable to equity holders includes Net loss on divestitures of $308 (pre-tax $148).

(3)	Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(4)

(5)	Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $65; International Banking – $753; Global Wealth Management – $10 and Other – $(178).

(6)	Refer to Note 37 for closed divestitures impacting the current year.

Geographical segmentation

The following table summarizes the Bank’s financial results by geographic region. Revenues and expenses which have not been allocated back to specific operating business lines are reflected in corporate adjustments.


For the year ended October 31, 2021 ($ millions) (1)	Canada			United States			Mexico		Peru		Chile		Colombia		Caribbean and Central America		Other International		Total
Net interest income	$	9,182		$	742		$	1,668	$	1,186	$	1,507	$	692	$	1,345	$	639	$	16,961
Non-interest income (1)		9,190			953			714		531		666		383		664		1,190		14,291
Total revenues (2)		18,372			1,695			2,382		1,717		2,173		1,075		2,009		1,829		31,252
Provision for credit losses		255			(33	)		334		586		205		195		221		45		1,808
Non-interest expenses		9,627			915			1,202		662		943		682		1,343		1,244		16,618
Income tax expense		1,909			120			184		104		204		80		103		167		2,871
Subtotal		6,581			693			662		365		821		118		342		373		9,955
Net income attributable to non-controlling interests in subsidiaries		(10	)		–			14		2		200		48		77		–		331
Net income attributable to equity holders of the Bank	$	6,591		$	693		$	648	$	363	$	621	$	70	$	265	$	373	$	9,624
Total average assets ($ billions)	$	695		$	167		$	41	$	27	$	53	$	13	$	30	$	131	$	1,157

(1)	Includes net income from investments in associated corporations for Canada – $117, Peru – $10, Chile – $( 15 ), Caribbean and Central America – $46, and Other International – $181.

(2)	Revenues are attributed to countries based on where services are performed or assets are recorded.


For the year ended October 31, 2020 ($ millions) (1)	Canada			United States		Mexico		Peru		Chile		Colombia			Caribbean and Central America		Other International		Total
Net interest income	$	8,515		$	763	$	1,661	$	1,705	$	1,415	$	812		$	1,734	$	715	$	17,320
Non-interest income (1)		8,085			1,375		724		605		677		449			753		1,348		14,016
Total revenues (2)		16,600			2,138		2,385		2,310		2,092		1,261			2,487		2,063		31,336
Provision for credit losses		2,271			128		644		971		639		666			570		195		6,084
Non-interest expenses		8,952			1,080		1,298		827		973		813			1,589		1,324		16,856
Income tax expense		967			192		98		116		78		(74	)		45		121		1,543
Subtotal		4,410			738		345		396		402		(144	)		283		423		6,853
Net income attributable to non-controlling interests in subsidiaries		(28	)		–		7		16		91		(87	)		76		–		75
Net income attributable to equity holders of the Bank	$	4,438		$	738	$	338	$	380	$	311	$	(57	)	$	207	$	423	$	6,778
Total average assets ($ billions)	$	689		$	164	$	41	$	31	$	52	$	14		$	35	$	135	$	1,161

(1)	Includes net income from investments in associated corporations for Canada – $(15), Peru – $5, Chile – $3, Caribbean and Central America – $55, and Other International – $194.

(2)	Revenues are attributed to countries based on where services are performed or assets are recorded.


For the year ended October 31, 2019 ($ millions) (1)(2)	Canada		United States			Mexico		Peru			Chile		Colombia		Caribbean and Central America		Other International		Total
Net interest income	$	7,630	$	720		$	1,684	$	1,576		$	1,613	$	1,017	$	2,143	$	794	$	17,177
Non-interest income (1)		7,304		1,189			671		790			806		567		1,048		1,482		13,857
Total revenues (3)		14,934		1,909			2,355		2,366			2,419		1,584		3,191		2,276		31,034
Provision for credit losses		981		(16	)		335		523			436		362		352		54		3,027
Non-interest expenses		8,275		870			1,306		846			1,166		920		1,933		1,421		16,737
Income tax expense		1,082		267			121		248			185		117		324		128		2,472
Subtotal		4,596		788			593		749			632		185		582		673		8,798
Net income attributable to non-controlling interests in subsidiaries		1		–			14		(11	)		179		124		101		–		408
Net income attributable to equity holders of the Bank	$	4,595	$	788		$	579	$	760		$	453	$	61	$	481	$	673	$	8,390
Total average assets ($ billions)	$	607	$	149		$	37	$	28		$	51	$	13	$	42	$	129	$	1,056

(1)	Includes net income from investments in associated corporations for Canada – $(114), Peru – $7, Caribbean and Central America – $69, and Other International – $867.

(2)	Prior period amounts have been restated to conform with current period presentation.

(3)	Revenues are attributed to countries based on where services are performed or assets are recorded.