Scotiabank reported third quarter net income of $1,959 million compared to $1,847 million in the same period last year.
Article continues below
Diluted earnings per share were $1.54, compared to $1.45 in the same period a year ago. Return on equity was 14.8% compared to 14.7% last year.
"This quarter's very good results were driven by strong operating performances in all three business lines," said Brian Porter, president and CEO of Scotiabank. "All of our businesses continue to grow and deepen customer relationships, which has delivered solid asset, deposit and revenue growth.
"Canadian Banking's earnings grew to $930 million, up 8% compared to the third quarter last year. Continued focus on targeted asset and deposit growth to optimize business mix has contributed to a 13 basis point increase in margin. This combined with efforts to reduce structural costs has led to further improvements in operating leverage and the overall strong results this quarter.
"International Banking had another strong quarter with earnings of $527 million. Earnings increased 9% from last year driven principally by the Pacific Alliance countries of Mexico, Peru, Chile and Colombia. Strong volume growth, improved margins and good expense management all contributed to positive operating leverage.
"We are very pleased with continued strong quarterly results in International Banking and remain positive about the medium and longer term potential for these markets.
"Global Banking and Markets results improved this quarter with earnings of $421 million reflecting better performance in several businesses including fixed income, corporate banking and investment banking.
"Provision for credit losses declined $181 million from last quarter. The majority of the decline related to lower losses in the energy sector, which is consistent with our previously stated expectations that energy losses had peaked during the last quarter.
"The Bank's Common Equity Tier 1 ratio remains strong and increased to 10.5%. We increased our quarterly dividend by 2 cents to 74 cents per share - a 6% increase from last year." ■