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Scotiabank Q2 profit rises, results beat estimates

Staff writer ▼ | June 2, 2015
Bank of Nova Scotia (Scotiabank) reported a 2 percent increase in profit for the second quarter from last year. Both revenue and adjusted EPS for the quarter beat analysts' expectations.
Bank of Nova Scotia   A 2 percent increase in profit
The results reflect higher net interest income, increase in banking and wealth management revenues, and the positive impact of foreign currency translation. Scotiabank also said it plans to buy back up to 24 million of its common shares within the next one year.

Halifax, Canada-based Scotiabank, Canada's third largest bank, reported second-quarter net income attributable to common shareholders of C$1.73 billion or C$1.42 per share, up from C$1.70 billion or C$1.39 per share in the year-ago quarter.

Excluding items, adjusted earnings for the quarter were C$1.43 per share, compared to last year's C$1.40 per share.

On a taxable equivalent basis, total revenue for the quarter was C$5.94 billion, up 4 percent from C$5.73 billion in the prior-year quarter. Analysts were looking for revenue of C$5.90 billion for the quarter.

Net interest income for the quarter grew 5 percent to C$3.20 billion from C$3.05 billion in the prior-year period. Non-interest income was C$2.74 billion, up 3 percent from C$2.67 billion last year.

Canadian Banking net income rose 1 percent to C$829 million, reflecting growth in assets and deposits, an increase in the net interest margin, and higher non-interest income.

Global Banking & Markets net income increased 3 percent from the year-ago period to C$449 million, driven by the positive impact of foreign currency translation and by strong results in capital markets and Canadian lending.

International Banking net income decreased 1 percent from last year to C$447 million. Strong loan growth across most geographies was partly offset by margin compression, particularly in the company's Latin American markets.