(June 1 – 13:20 ET) – Scotiabank maintained its positive earnings momentum in the second quarter ended April 30, with net income and earnings per share both up 21% over the same period a year ago.
Net income was $465 million, up $81 million from the second quarter of last year. Earnings per share increased to 88¢ from 73¢, and return on equity rose to 17.7%, up from 15.7%. The bank’s productivity ratio was 58%, a 0.6% improvement.
“With strong revenue growth driving our results, we substantially exceeded our performance targets this quarter,” said Scotiabank chairman and CEO Peter Godsoe. “All of our core businesses produced solid results, demonstrating the value of Scotiabank’s diversification strategy.”
“Domestic banking, including wealth management, achieved an excellent 30% year-over-year increase in earnings, due to significant growth in retail lending and deposits and higher brokerage revenues,” Godsoe said.
Wealth management-related revenues increased 37% year over year, reflecting much stronger retail and discount brokerage revenues.
Scotiabank’s international operations had a successful quarter, achieving a significant 19% increase in net income year over year. Growth was driven by improved profitability in Asia and Latin America. As well, the Caribbean continued to record strong results.
Investment banking revenues at Scotia Capital climbed to a record $218 million in the second quarter from $169 million a year ago, with higher trading income and underwriting fees accounting for most of this increase.
Also today, Scotiabank’s board of directors announced a quarterly dividend of 24¢ per common share.
-IE Staff