Scotiabank, formally known as the Bank of Nova Scotia (TSE:BNS, Mkt cap 70.05B, P/E 10.13, Div/yield 0.70/4.88, EPS 5.67, Shares 1.20B) is Canada’s third-largest lender by assets. Today Scotiabank raised its quarterly dividend 2.9% to 72 cents a share after posting a 5% jump in fiscal first-quarter profit, the Financial Post reports.
Net income for the period ended Jan. 31 climbed to $1.81 billion, or $1.43 a share, from $1.73 billion, or $1.35, 12 months previous, the Toronto-based bank revealed in a statement.
Adjusted to exclude items, Scotiabank said it earned $1.44 a share, surpassing the $1.42 average estimate of 15 analysts surveyed by Bloomberg.
“We delivered strong earnings to start 2016 with solid top line growth in both our Canadian banking and our international- banking businesses,” Chief Executive Officer Brian Porter said in the statement. “Mexico, Peru, Chile and Colombia continued to deliver robust loan, deposit and fee growth.”
Loan-loss provisions, or money the bank sets aside to cover bad loans, rose to $539 million from $463 million a year earlier. Scotiabank said the increase was, in part, due to higher provisions in the oil and gas sector.
The performance of Canada’s big banks in the first fiscal quarter of the year has been decidedly mixed. Last week, the country’s largest lender by assets, Royal Bank of Canada, reported flat results that fell short of analyst expectations, with returns diminished by the fallout from lower oil prices.
Toronto-Dominion Bank, second-largest by assets, also fell short of analysts’ expectations. Meanwhile, Bank of Montreal and Canadian Imperial Bank, fourth and fifth in size respectively, posted higher-than-expected earnings.
Scotiabank said earnings in its Canadian banking operations rose 7% to $875 million in Q1, while international banking earnings rose 21% toC$505 million. Global banking and markets results fell 9% due, in part, to higher loan-loss provisions.
“The Bank’s diversified business model has delivered growth despite continued volatility in the markets and some moderation in select areas of our operations,” Ported added.
The Bank of Nova Scotia, also known as Scotiabank, is a Canadian diversified financial institution, based in Toronto. The Bank offered a range of financial services, including retail, commercial, corporate and investment banking to more than 21 million customers in more than 55 countries around the world. Scotiabank has 4 business segements: Canadian Banking, International Banking, Scotia Capital and Global Wealth Management. The Canadian Banking segment provided a range of banking and investing services to more than 7.7 million customers across Canada, through a network of 1,190 branches, 3,869 automated banking machine (ABMs), as well as telephone, Internet banking and third-party channels. International Banking includes Scotiabank’s retail and commercial banking operations in more than 55 countries outside Canada. Global Wealth Management (GWM) consists of wealth management insurance and Global Transaction Banking businesses. More from Reuters
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