Scotiabank (BNS) reported that its net income rose a slight 2% during its fiscal third quarter
as earnings were impacted by a decline in capital markets and slowdown in trading activity.
The bank posted $2.59 billion in net income for the three-months ended July 31, up 2%
compared to $2.54 billion a year earlier. Scotiabank said it earned $2.10 per share in the
quarter, which was slightly less than the $2.11 in per share earnings that was expected by
analysts.
Profit from Scotiabank’s banking unit climbed 12% year-over-year to $1.21 billion due to higher
interest rates and as loan growth increased 14% from a year ago.
Scotiabank said it set aside $412 million in provisions for potential loan losses in the most
recent quarter, compared to $219 million in the previous quarter.
The bank's international unit saw the most profit growth as net income in that division gained
29% year-over-year to $625 million.
A slowdown in capital markets and trading activity led profits at Scotiabank's global banking and
markets unit to drop 26% year-over-year to $378 million. Revenue at Scotiabank's capital
markets division fell 30% to $423 million.
Scotiabank’s stock is down 11% this year at $80.78 per share.
