Scotiabank Q2 profit up 30% over last year

Scotiabank reports Q2 net income of $2.06 billion compared to $1.58 billion in the same period last year. Diluted earnings per share were $1.62, compared to $1.23 in the same period a year ago, while return on equity was 14.9% compared to 12.1% last year.

The 30% rebound for 2017 was largely due to the bank having recorded a restructuring charge of $278 million after tax ($378 million pre-tax) in the second quarter of w2016. Adjusting for the impact of that restructuring charge, net income and diluted earnings per share rose 11%. Return on equity was 14.9% compared to 14.4%.

“This quarter’s results were driven by strong operating performances in all three business lines,” says Brian Porter, president and CEO of Scotiabank, in a release. He notes the bank will continue to prioritize customer service, digitization of the bank and efficiency.

Both Canadian banking and global banking and markets had a strong quarter, he adds in the release.

In particular, the bank’s wealth management income was $853 million, compared to $843 million in Q1 2017 and $800 million a year earlier. The bank’s AUM and AUA both increased for the quarter, according to its quarterly report to shareholders.

Last week, BMO, CIBC, RBC and TD all reported strong Q2 results.

Read: CIBC, Royal Bank, TD report increased net income, AUM

Additional details

Scotiabank plans to repurchase up to 24 million of its common shares. It says in a release that the TSX and Office of the Superintendent of Financial Institutions have approved its normal course issuer bid to purchase the shares, which represent approximately 2% of the common shares issued and outstanding as of May 25, 2017.

As well, the bank has announced a dividend on the outstanding shares of the bank for the quarter ending July 31, 2017, payable on July 27, 2017 to shareholders of record at the close of business on July 4, 2017. Here are the details:

Common Shares