Canadian lender Scotiabank has posted a net income of C$1.81bn for the first quarter of fiscal year 2016, up 5% compared to C$1.72bn in the year-ago quarter.
For the quarter ended 31 January 2016, the bank’s total revenue was C$6.36bn, a rise of 8.5% from C$5.86bn in the prior year.
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Net interest income stood at C$3.52bn, an 11% increase from C$3.17bn a year earlier. Non-interest income increased 5.6% to C$2.84bn from C$2.69bn in the corresponding quarter of 2015.
Non-interest expenses were up by 11.6% year-on-year to C$3.57bn from C$3.19bn. The bank’s provision for credit losses rose to C$539m from C$463m a year ago.
Scotiabank president and CEO Brian Porter said: "We delivered strong earnings to start 2016 with solid top line growth in both our Canadian Banking and our International Banking businesses. The Bank’s diversified business model has delivered growth despite continued volatility in the markets and some moderation in select areas of our operations.
"Canadian Banking’s focus on growing and deepening customer relationships continued to drive higher year-over-year earnings. These efforts resulted in strong volume growth in targeted areas across both retail and commercial loans and deposits, which improved our business mix and resulted in a 19 basis point increase in the net interest margin this quarter.
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By GlobalData"International Banking’s strong performance continued in the first quarter of 2016, with good year-over-year growth. The Pacific Alliance countries of Mexico, Peru, Chile and Colombia continued to deliver robust loan, deposit and fee growth – and we continue to see great potential in these markets."
