Scotiabank beats third-quarter expectations as profits soar | Globalnews.ca

Scotiabank beat expectations as it reported a third-quarter profit of $2.54 billion, up from $1.30 billion in the same quarter last year.

The bank said Tuesday the profit amounted to $1.99 per diluted share for the quarter ended July 31, up from $1.04 per diluted share a year ago.

Revenue totalled $7.76 billion, up from $7.73 billion in the same quarter last year.

Provisions for credit losses fell to $380 million in what was the bank’s third quarter compared with $2.18 billion a year ago and $496 million in the second quarter.

On an adjusted basis, Scotiabank says it earned $2.01 per diluted share, up from an adjusted profit of $1.04 per diluted share in the same quarter last year.

Analysts on average had expected the bank to report an adjusted profit of $1.90 per share, according to financial market data firm Refinitiv.

“We delivered another quarter of strong results, with contributions from all our operating segments, reflecting the benefits of a well-diversified business model,” Scotiabank CEO Brian Porter said in a statement.

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“While the economic recovery is unfolding at different rates across our footprint, I’m very proud of the Scotiabank team’s ongoing resilience and continued commitment to our customers.”

Scotiabank said its Canadian banking division earned net income of $1.08 billion, up from $429 million last year, driven by lower provisions for credit losses and higher revenues.

International banking saw earnings of $486 million, compared with $26 million last year, boosted by lower provisions for credit losses and lower non-interest expenses.

The bank’s wealth management business reported earnings of $390 million, up from $321 million last year as it saw an increase in mutual fund fees and brokerage revenues.

Scotiabank’s global banking and markets division earned net income of $513 million, down from $600 million last year, on lower net interest income, non-interest income and foreign currency effects.