Scotiabank ended the year with a much higher net income compared last year amidst pandemic
Scotiabank releases Q4 results
Ephraim Vecina
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Find out how the Canadian banking giant fared
Spearheading the Q4 2021 round of earnings announcements, Scotiabank today reported net income of $2.559 billion in the quarter ending October 31, much higher than the $1.899 billion during the same period last year. Diluted earnings per share stood at $1.97, versus $1.42 a year ago.
Scotiabank also reported net income of $9.955 billion for the fiscal year 2021, compared to net income of $6.853 billion in 2020. Diluted EPS reached $7.70, up from $5.30 the year prior. Return on equity improved to 14.7%, compared to 10.4% in 2020.
“We ended the year with strong fourth quarter earnings and exceeded our medium-term financial targets in fiscal 2021. Our diversified business model demonstrated its resilience through the pandemic, and the bank is well positioned to achieve its full earnings power in the upcoming year,” said Brian Porter, president and CEO of Scotiabank.
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Scotiabank’s Canadian banking arm generated adjusted earnings of $4.171 billion in 2021, up by approximately 60% annually. The increase was driven by lower provisions for credit losses and higher revenues driven by non-interest income and strong loan growth.
The bank’s global wealth management division also saw its adjusted earnings grow by 23% annually to $1.592 billion in 2021, driven by strong results across both its Canadian advisory and asset management businesses.
Another strong area for Scotiabank was global banking and markets, which saw earnings of $2.075 billion due to robust performance, prudent expense management, and lower provisions for credit losses. International banking, in particular, saw a 62% annual increase in adjusted earnings, reaching $1.855 billion due to strong commercial and secured lending loan growth, prudent expense management supported by accelerated customer adoption of digital channels, and lower provisions for loan losses, driven by improved credit outlook.
The bank currently has a Common Equity Tier 1 capital ratio of 12.3%, which has made it sufficiently “capitalized to support its strategic growth plans and return capital back to shareholders,” Scotiabank said. “This quarter we announced a 10 cent increase in the quarterly dividend to $1.00 per common share, 11% higher than a year ago.”
“As we close out 2021, it is clear that our sharpened footprint and our significant investments in our digital capabilities have positioned the bank for a very bright future,” Porter said. “As we look forward to 2022, we expect to deliver strong growth across all our business lines, with optionality and multiple avenues to grow.”
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