Scotiabank Hikes Dividend as Quarterly Earnings Rise

Scotiabank closed the quarter with a 6.5% year-on-year increase in its net income to $1.709 billion

Scotiabank, formally known as the Bank of Nova Scotia (TSE:BNS, Mkt cap 77.86B, P/E 12.44, Div/yield 0.64/3.99, EPS 5.15, Shares 1.21B) has become the fourth of Canada’s five largest banks to decide on an increase in its dividend after recording strong results for its fiscal first quarter of 2014.

Scotiabank closed the quarter with a 6.5% year-on-year increase in its net income to $1.709 billion

Scotiabank closed the quarter with a 6.5% year-on-year increase in its net income to $1.709 billion

In its latest financial statement the bank said it would hike its dividend by $0.02 per share to $0.64 per quarter, which will apply to shareholders of record as of 1 April 2014 and will be payable starting from 28 April 2014. This increase is the second for the Canadian bank in the last year and brings the five-year compound annual growth rate in its dividend to 5%.

Scotiabank closed the quarter with a 6.5% year-on-year increase in its net income to $1.709 billion. Earnings per share also improved by 6.5% in the period, reaching $1.32 billion.  The lender reported quarterly revenues of $5.725 billion, up 9% over the same quarter last year, and return on equity of 15.4% against 16.8% last year and 15.8% the preceding quarter.

The robust results generated by Scotiabank’s Canadian personal and commercial banking business were the top driver behind its strong quarterly performance, with 7% annual growth in net income to $575 million. Its international banking business, meanwhile, reported a 2% drop in net earnings to $401 million, as revenues in its top foreign market, Latin America, were offset by lower net interest margins, a decline in contributions from associated corporations and an increase in credit loss provisions and expenses.

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