Scotiabank Q2 2019 net income is up 3.6% year-on-year to C$2.26bn boosted by strong retail banking and international revenue growth.
On an underlying basis, Scotiabank Q2 2019 net income rises by 3.2% y-o-y to C$2.26bn.
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On the other hand, Scotiabank Q2 2019 earnings just miss analyst forecasts.
Adjusting for acquisition-related costs, net income at the bank’s Canadian banking unit is up 4% to C$1.06bn.
The increase is driven by solid loan growth, strong deposit growth and the impact of an acquisition.
Net income at Scotiabank’s International Banking unit is up by 15% to C$787m adjusted for acquisitions and divestitures.
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By GlobalDataThe growth is largely driven by higher net interest income due to strong loan growth in the Pacific Alliance countries.
Scotiabank Q2 2019 highlights
Net interest income rises by 6%, boosted by a 2 basis point rise in the core banking margin to 2.45%. Furthermore, non interest income is ahead by 11%.
The bank’s Canadian banking net interest margin rises by 3 basis points to 2.46%.
Canadian banking loans growth is 3% with retail mortgages up by 2% and credit cards up by 6%.
Strong deposit growth is highlighted by personal deposits up by 8% and non-personal deposits up by 15%.
Scotiabank’s International unit reports loans growth of 29% driven by acquisitions in Chile, Colombia and Peru.
Scotia ranks third by market share in Peru and Chile with market shares of 17.8% and 14.1% respectively.
In Columbia and Mexico, it ranks 5th and 6th by market share with 6.1% and 7.4% respectively.
“The bank continues to make steady progress in the execution of its strategy. It has completed previously announced acquisitions in Peru and the Dominican Republic and announced the divestiture of El Salvador. Our sharper geographic focus, improved business mix and progress in digital banking position the Bank well for the future,” says Brian Porter, President and CEO of Scotiabank.
Scotiabank Q2 2019 digital progress
The bank continues to make steady progress against its 2018 Investor Day digital highlights. In-branch transactions now account for 17%, down by 300 basis points from the year ago period.
Scotia’s digital adoption rate is up by 400 basis points from a year ago to 35%.
Chile now accounts for 29% of International banking revenue ahead of Mexico and Peru, 27% and 26% respectively.
The remaining 18% is earned in Columbia.
