Bank of Nova Scotia opened the season of profits for the Canadian Big Six on Wednesday with a pace and increase in dividends, as profits rose in all its major divisions, except capital markets.
Scotland said its net profit for the second fiscal quarter, which ended April 30, rose to $ 2.75 billion from $ 2.46 billion a year earlier. On an adjusted basis, Scotia earned $ 2.18 per share; the average rating among analysts tracked by Bloomberg was $ 1.97 in adjusted earnings per share.
The bank also announced that its quarterly dividend would rise to $ 1.03 per share of $ 1.00 effective July 27.
“Continued 13 percent loan growth, improving net interest margins, strong customer balance sheets, combined with prudent cost management, are positioning the bank well to grow its profits,” said Brian Porter, president and CEO of Scotland. in a message.
Profits in Scotland’s main Canadian banking division rose 27% year-over-year to $ 1.18 billion in the last quarter. Credit quality was a factor in the change from a year earlier, as Scotland released $ 12 million from the loan loss unit’s provisions in the last quarter; a year earlier, he had recorded $ 145 million in new provisions for loans that could go bad.
Scotland said it had an average of $ 271.8 billion in housing mortgages in its Canadian loan portfolio in the second fiscal quarter, up nearly three percent from the previous quarter.
Growth in Scotland’s international division was even more pronounced as net profit rose 44% year-over-year to $ 605 million as loan loss provisions fell and revenue rose.
Scotland’s global banking and markets division saw a drop in profits as net profit fell six percent year-on-year to $ 488 million, which the bank attributes to higher non-interest expenses and lower non-interest income.
In a report to customers after the results were released, Barclays analyst John Icon said he did not think Scotland would be overwhelmed by declining profits in its capital markets business.
However, Aiken noted that the decline in the ratio of tier 1 capital of Scotland’s ordinary capital to 11.6% from 12.0% in the previous quarter may not be to the liking of investors.
“The only real blow to the results will probably be Scotia’s lower regulatory ratio than that of competitors, which was again reduced by stock repurchases. As long as we believe in that [Scotia] is moving towards a much more efficient level of capital, the market does not like extraordinary values, especially when it comes to capital and uncertain prospects. “
Add Comment