Scotiabank The bank closed earnings with results, which showed an increase in earnings in its international banking division, although one-time charges reduced total results by approximately $500 million.
The bank reported fourth-quarter net income of $2.09 billion, down from $2.56 billion in the same quarter last year, as it made several adjustments, including a $340 million loss from the sale of investments in Venezuela and Thailand and its This included $98 million of committed support costs. Expansion of its loyalty points program.
Adjusted net income for the quarter was $2.62 billion, or $2.06 per diluted share, compared to adjusted earnings of $2.61 billion, or $2.10 per diluted share.
Analysts on average had expected a profit of $2 per share, according to financial market data firm Refinitiv.
For the full year, adjusted net income was $10.75 billion, up from $10.17 billion last year, outgoing Chief Executive Officer Brian Porter said on the earnings call, as the bank improved earnings despite difficulties in some markets.
Scotiabank CEO Brian Porter to retire in 2023, Finning set as chair replacement
read more
“Our results this year clearly reflect the solid contributions our businesses have made and our ability to absorb periods of volatility, as evidenced by the challenging conditions faced by our market-sensitive businesses.”
The bank’s international division showed a 25 percent increase in net income compared to a year ago on a constant dollar basis. Barclays analyst John Aiken said Canadian banking, wealth management and its markets declined, although capital markets performed better than expected.
“Scotia started its fourth-quarter earnings with a strong beat led by better-than-expected performance in capital markets and its international operations,” Aiken said in a note. “International saw particularly strong loan growth and net interest margin expansion.”
Porter said both benefited from loan growth and improved interest margins internationally as the company focuses on client growth.
“We’re very focused on our existing customers and adding new customers. And that’s the core of the loan growth that you’re seeing in the business. A large portion of that loan growth is happening in the US where we Focusing on America’s strategy.”
Total revenue for the quarter was $7.63 billion, down from $7.69 billion in the previous year’s fourth quarter.
Loan losses totaled $529 million, up from $168 million in the year-ago quarter.
Looking ahead, Porter said there is room for optimism in the economy.
“Central banks in Canada and the United States appear to be nearing the end of their tightening cycles as inflation is finally slowing. In Canada, economic growth is slowing, but economic levels of activity remain strong.”
He said labor market strength and strong balance sheets are helping to balance the effects of slower activity in Europe and Asia, while early rate hikes by central banks in Latin America mean they will be able to ease into next year. .
© 2022 The Canadian Press