Scotiabank has posted net income of C$1.84bn for the fourth quarter ended 31 October 2015, up 28% compared to C$1.43bn a year ago.
Adjusting for the 2014 notable items, net income increased by 8% and EPS growth was 10%. The group’s diluted earnings per share (EPS) were C$1.45, up 32% compared to C$1.10 in the year ago quarter.
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For the fourth quarter of 2015, the bank reported total revenue of C$6.12bn, an increase of 6.7% from C$5.74bn a year earlier.
The bank’s net interest income (TEB) rose 9% to C$3.3bn from C$3.09bn a year ago.
The bank attributed the rise to asset growth primarily in retail and commercial loans in international banking, automotive and commercial loans in Canadian Banking, corporate loans in Global Banking and Markets, and the positive impact of foreign currency translation.
Non-interest income (TEB) rose 3% to C$2.8bn from C$2.74bn in the year ago quarter. This increase was due to higher banking fees, wealth management revenues, trading revenues, the positive impact of foreign currency translation.
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By GlobalDataThe bank’s non-interest expenses for the fourth quarter of 2015 were C$3.28bn, down 2% from C$3.36bn in the year ago period.
The group’s assets under management at the end of fourth quarter stood at C$179bn compared to C$182bn a year ago. The provision for credit losses were C$551m, a decrease of 4% from C$480m from the same quarter last year.
Scotiabank president and CEO Brian Porter said: "The Bank’s earnings growth in 2015 was driven by very good performances in our personal, commercial and wealth businesses, both in Canada and internationally.
"Delivering valued advice and products to our more than 10 million retail and commercial customers resulted in good core growth in both assets and deposits. Continued growth in our commercial banking, wealth management and retail payments strengthened many existing customer relationships, as well as improving our asset and deposit mix.
"With two dividend increases, we increased our returns to shareholders by 6% this year. Our strong capital position at 10.3%, allows us to continue to make the necessary investments while also growing our businesses and making selective acquisitions.
"In 2016, further investment in technology will continue to digitally transform the Bank, position us for even greater growth and contribute to the creation of long-term shareholder value."
