Scotiabank delivered record earnings in the third quarter with net income of $554 million and diluted earnings per share of $1.04. In comparison to last year (excluding the one-time gains), both net income and diluted earnings per share rose by 12%.

Including last year’s one-time gains on the sale of the Bank’s stock transfer business and Solidbank, totaling 11 cents per share, net income increased by $6 million or 1% and diluted earnings per share were unchanged at $1.04.

For the nine-month period ended July 31, 2001, net income was $1,603 million or 16% higher than the same period a year ago, excluding the one-time gains. On the same basis, diluted earnings per share were $3.00, an increase of 41 cents, while return on equity was 17.4%, compared to 17.1%.

“Solid earnings and revenue growth continued across all business lines in the third quarter, keeping us on track to meet or exceed our performance targets for 2001,” said Peter Godsoe, Chairman and CEO. “Our broad-based revenue streams and a consistent focus on cost control have enabled us to maintain our strong earnings momentum.

“We continued to proactively manage our credit portfolios, resulting in a significant reduction in net impaired loans,” said Mr. Godsoe. “We strengthened our general provision by another $75 million this quarter. Our strong corrective action is keeping us on track to meet our credit quality targets for the end of the year.”