Scotiabank reported third-quarter adjusted earnings per share of Cdn$2.28, exceeding analyst expectations of Cdn$2.08, as revenue climbed 11% year-over-year to Cdn$10.54 billion. Net income rose to Cdn$2.97 billion from Cdn$2.52 billion in the same period last year, the bank said in a statement.
The Toronto-based lender’s adjusted return on equity improved to 14.2%, surpassing its medium-term target of 14% and up from 12.4% a year ago. Despite the strong results, shares fell 0.81% in early trading, closing at Cdn$120.29.
Global Wealth Management delivered record earnings of Cdn$518 million, a 23% increase from the prior year, driven by higher mutual fund fees, brokerage revenues and net interest income. Assets under management grew 16% to Cdn$474 billion.
Global Banking and Markets posted record earnings of Cdn$647 million, up 37% year-over-year, supported by strong capital markets performance and record underwriting and advisory fees. Canadian Banking generated earnings of Cdn$1.07 billion, an increase of 12%, reflecting margin expansion and fee income growth.
International Banking earnings rose 8% to Cdn$766 million. The bank maintained a Common Equity Tier 1 capital ratio of 13.1% and repurchased 8.6 million shares during the quarter.
Chief Executive Officer Scott Thomson said, "Q3 was a record quarter for the Bank, as all business lines reported strong results and we exceeded our medium-term objectives in the period. In particular, we exceeded our 14% return on equity target this quarter, highlighting the improvements that we have made across the bank to increase margins and fee income."
