Globally, Scotiabank reported third quarter 2012 net income of $2,051 million ($1.44 billion excluding the gain from sale of the Scotia Plaza property in Toronto) compared with net income of $1,303 million in the same period last year.
Diluted earnings per share were $1.69, an increase of 54% compared to the same period last year,. Return on equity was strong at 24.6%.
International Banking reported net income earnings of $442 million, fueled by solid growth in retail and commercial businesses across Latin America and Asia, combined with earnings from acquisitions, mostly in Colombia.
Canadian Banking had a very strong quarter with net income of $521 million, highlighted by very good volume growth, disciplined expense control and lower provisions. There was also good revenue growth in both cards and payments with strong new credit card and chequing account originations across all channels, and strong small business and commercial deposit growth. Canadian Banking continued to make solid contributions to Global Wealth Management for mutual funds sold through the branch network.
Global Wealth Management results this quarter were solid, earning $284 million in financial markets that remain challenging. There was strong growth in both insurance and wealth earnings, partly offset by higher taxes.
Global Banking and Markets had an excellent quarter, reporting net income of $398 million. Results were strong across the diversified client driven platform, particularly in the fixed income and equities businesses. The Bank’s credit portfolios are currently performing as expected, a reflection of our proven risk management discipline. However, in the face of continuing global uncertainty and weakening economic forecasts, the Bank has increased its allowance for credit losses on performing loans this quarter, resulting in a coverage ratio among the highest of our peers in the industry.
“We anticipate achieving our 2012 financial goals, as outlined in our guidance at the beginning of the year and are well positioned for next year. Accordingly, we have again increased our dividend, at the same time as retaining substantial sustainable earnings to finance our anticipated growth.” Stated Rick Waugh, Scotiabank President and CEO.
Third quarter financials at a glance:
- Earnings per share (diluted) of $1.69
- Net income of $2,051 million (grew by 57%)
- Return on equity of 24.6%
- Productivity ratio of 46.9%
- Quarterly dividend increased by 2 cents to 57 cents per common share
- After-tax gain on the sale of Scotia Plaza in Toronto, Canada of $614 million or 53 cents per share.
- Increase in the collective allowance for credit losses on performing loans of $100 million, representing 6 cents per share after tax.
- Dividend of 57 cents per common share was announced, an increase of 2 cents per share.
ABOUT SCOTIABANK: As at May 2012
Scotiabank is one of North America’s premier financial institutions and Canada’s most international bank. With more than 80,000 employees, Scotiabank and its affiliates serve some 19 million customers in more than 55 countries around the world. Scotiabank offers a broad range of products and services including personal, commercial, corporate and investment banking. With assets of $660 billion (as at April 30, 2012), Scotiabank trades on the Toronto (BNS) and New York Exchanges (BNS). For more information please visit www.scotiabank.com.
For further information: Please contact Mrs. Claire Jordan, firstname.lastname@example.org - Scotiabank Caribbean East, Managing Director’s Office, St. Michael Barbados