(December 6 – 12:00 ET) – Bank of Nova Scotia is reporting record results for the 11th consecutive year.

The bank recorded $1.926 billion in net income for the year ended October 31, 24% higher than 1999. Earnings per share for the year jumped 25% to $3.67.

Over the past five years, net income has grown at a compound annual rate of 17%. According to the bank both earnings per share and return on equity rose significantly, while the productivity ratio improved to 56.5% from 59.3% year over year.

Scotiabank also had a strong fourth quarter to round out the record year, with net income of $497 million, up 24% from $402 million in 1999. Earnings per share climbed to 95¢ for the quarter, compared to 76¢ a year ago, and ROE was 17%, up from 15.3% for the same period in 1999.

“Scotiabank’s record performance was driven by solid growth in domestic banking, which includes wealth management, as well as in international operations,” said Peter Godsoe, chairman and CEO. “Our customer focus continues to support our ability to successfully deliver some of the best and most consistent returns of any major Canadian company. Our growth and diversification strategies have served us well, once again, this year,” he added.

Domestic Banking net income rose 36% to $882 million, contributing 46% of the bank’s total net income. Wealth management, a key component of domestic banking’s earnings, generated $858 million in revenues, an increase of 29% from the previous year. Assets under administration grew to $97 billion, an 18% increase from 1999.

Scotia Mutual Funds assets under management surpassed $10 billion, supported by several initiatives to add new funds and leverage the bank’s extensive distribution networks. Fee-based assets under management in the retail brokerage division increased by 30%.

International banking contributed $364 million to Scotiabank’s earnings this year, a 23% increase over 1999, and representing 19% of the bank’s net income. Caribbean and Central American operations continue to lead the division’s earnings contribution, with net income of $221 million.

The bank says Scotia Capital earned $650 million in 2000, versus $745 million in 1999. In Canada, lending operations recorded a substantial increase in interest and fee revenues, in line with asset growth. However, the bank says this was more than offset by a return to more normal levels of loan loss provisions following significant recoveries in 1999. Institutional equity’s earnings rose 43% this year, with volatile markets and high trading volumes driving a record year for both commission and trading revenues.
-IE Staff