Scotiabank performance strong

Scotiabank reported total net income of $1.5 billion in Q2 2012, compared to $1.6 billion last year.

The drop is primarily due to extra income accrued last year. The bank’s Q2 2011 results included non-recurring acquisition gains of $286 million, along with foreign currency gains of $77 million from the conversion to IFRS.

Excluding these gains, net income grew 16% over last year.

Diluted earnings per share were $1.15, compared to $1.39 in 2011. Last year’s earnings benefited 33 cents per share from the non-recurring gains.

Return on equity remained strong at 18.6%, and the bank issued a dividend of 55 cents per common share.

“Our continued focus on sustainable and diversified revenues in high-growth markets, together with ongoing cost-containment initiatives are contributing to solid growth in earnings,” says Rick Waugh, Scotiabank president and CEO.

He adds, “With an increase of 23%, our Canadian banking sector has remained strong. The bank had solid asset growth, lower provisions for credit losses and expense discipline across the business.”

Global wealth management provided net income of $298 million, due to performance in the Canadian mutual fund business and strength in global insurance.

The international banking division’s net income was $448 million, up 14% from Q2 2011. The bank’s second-quarter results also include earnings from its acquisition of Banco Colpatria in Colombia.

Global banking and markets reported net income of $387 million, a return to 2011 levels. Corporate and investment banking results were up, and client-driven capital markets businesses performed well.

The bank’s Tier 1 and tangible common equity ratios increased significantly during Q2.

“Based on our strong performance in the first half of the year, we remain confident of achieving our goals and targets for 2012,” says Waugh.

Staff

The staff of Advisor.ca have been covering news for financial advisors since 1998.