Scotiabank reports Q2 profit up from year ago, raises quarterly dividend

Photo: The Canadian Press

Scotiabank raised its quarterly dividend as it reported a second-quarter profit of $2.75 billion, up from $2.46 billion in the same quarter last year.

The bank said Wednesday it will now pay a quarterly dividend of $1.03 per share, up three cents from $1 per share.

The bank's profit for the quarter ended April 30 amounted to $2.16 per diluted share, up from $1.88 per diluted share a year ago, as revenue totalled $7.94 billion, up from $7.74 billion.

Scotiabank's provision for credit losses amounted to $219 million, down from $496 million in the same quarter last year.

On an adjusted basis, the bank said it earned $2.18 per diluted share for its most recent quarter, up from an adjusted profit of $1.90 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.96 per diluted share, according to financial markets data firm Refinitiv.

"We are pleased with the very strong EPS growth of 15 per cent and a return on equity of 16.4 per cent," Scotiabank chief executive Brian Porter said in a statement.

"Continued loan growth of 13 per cent, an improving net interest margin, strong customer balance sheets, combined with prudent expense management, positions the bank well to grow its earnings."

Scotiabank said its Canadian banking business earned net income attributable to equity holders of $1.18 billion in its latest quarter, up from $927 million in the same quarter last year, helped by higher revenues and lower provision for credit losses, partly offset by higher non-interest expenses.

International banking operations earned net income attributable to equity holders of $605 million, up from $420 million a year ago, as the bank saw a lower provision for credit losses, lower non-interest expenses and higher revenues, partially offset by the negative impact of foreign currency translation.

The bank's global wealth management arm earned $407 million in net income attributable to equity holders, up from $372 million a year ago, while its global banking and markets business earned $488 million in net income attributable to equity holders, down from $517 million in the same quarter last year.