Scotiabank Beats Estimates as Wealth Management and Global Profits Grow

Bank of Nova Scotia (BNS) reported second-quarter earnings on Tuesday that slightly exceeded analyst expectations, in what the bank’s chief executive put it “against a backdrop of continued macroeconomic uncertainty.”

Total revenue rose year-over-year to C$8.35 billion ($6.13 billion), up from last year’s C$7.91 billion and slightly above analysts’ expectations of C$8.30 billion, according to estimates compiled by Visible Alpha.

Profit, while still ahead of analyst estimates, fell to C$2.09 billion, or C$1.57 per share, from C$2.15 billion and C$1.68 per share Scotiabank reported last year. Analysts expected net income of C$2.05 billion, or C$1.55 per share.

Wealth management, international profits grow

Scotiabank reported an increase in net profit in its wealth management and international businesses, while profit in the bank’s Canadian operations fell by approximately 4% year-over-year due to higher provisions for credit losses (PCL) and expenses.

“The bank delivered solid performance this quarter against a backdrop of continued macroeconomic uncertainty, with positive operating leverage driven by revenue growth and continued cost discipline,” Scotiabank Chief Executive Officer (CEO) Scott Thomson said in a statement.

Analysts at Bank of America wrote in a note earlier this month that a number of factors, such as uncertainty about the future of inflation, rising credit card debt and interest rates in the U.S. and abroad, have prompted many investors to exercise caution when investing. in bank shares.

Scotiabank announces quarterly dividend

The bank also declared a quarterly dividend of C$1.06 per share, to be paid on July 29 to record shareholders on July 3. This will be the fourth consecutive quarter in which Scotiabank will pay a dividend of C$1.06 per share.

Scotiabank and many other Canadian banks report month-end earnings. Last week, Toronto-Dominion Bank (TD) reported results that also beat estimates.

Scotiabank shares rose 0.9% to $48.23 on the New York Stock Exchange (NYSE) about 90 minutes before the opening bell, but have fallen slightly since the start of 2024.