The Bank of Nova Scotia raised its quarterly payment to common shareholders by two cents to 87 cents per share. (Photo by THE CANADIAN PRESS)

Scotiabank Q1 net income slips 4% to $2.25B amid “significant market volatility”

TORONTO — The Bank of Nova Scotia hiked its dividend as it reported its first-quarter profit slipped to $2.25 billion from $2.34 billion a year earlier, missing market expectations.

Canada’s third-largest bank raised its quarterly payment to common shareholders by two cents to 87 cents per share.

The Toronto-based lender’s earnings for the three-month period ended Jan. 31 amounted to $1.71 per diluted share, compared with $1.86 a year ago.

On an adjusted basis, the bank reported first-quarter net income of $1.75 per diluted share, down from $1.87 per diluted share a year ago.

That was below the adjusted earnings of $1.82 per share expected by analysts, according to Thomson Reuters Eikon.

“We had a solid start to the year with strong earnings growth in international banking and wealth management. This quarter also saw good progress related to the integration of recent acquisitions which is proceeding as expected,” said Brian Porter, Scotiabank’s chief executive in a statement.

“While significant market volatility impacted some of our business lines, we still experienced strong growth. In addition, credit quality remains strong and in line with recent quarters.”

The Toronto-based lender’s Canadian banking arm saw net income attributable to equity holders slip by three per cent to $1.07 billion but its international banking division reported a 17 per cent increase in earnings to $782 million.

Scotiabank’s global banking and markets business however saw a 26 per cent drop in net income attributable to equity holders to $335 million.

Provisions for credit losses, or money set aside for bad loans, was $688 million, up from $544 million a year earlier.

The bank’s common equity tier 1 ratio, a key measure of the its financial health, was 11.1 per cent, down from 11.2 per cent a year earlier but unchanged from the previous quarter.

Scotiabank also announced Tuesday that it has entered into a non-binding memorandum of understanding regarding its interest in Thailand-based Thanachart Bank Public Co. Ltd, also known as TBank. TBank and TMB Bank Public Co. Ltd., also based in Thailand, have been planning to merge, subject to approval.

“It is currently expected that the merger and related transactions would result, if concluded, in Scotiabank significantly reducing its investment in Thailand and holding a significantly smaller stake in the combined bank and receiving proceeds which is expected to result in a gain on sale,” the bank said in a statement.

Just Posted

2019 Women of Excellence Awards nominees announced

The nominees were announced in Red Deer Thursday

City watching speed limit debate

Blackfalds, Calgary and Edmonton the latest to consider reduced residential speed limits

Movie shot in Red Deer and Lacombe is nominated for Alberta film award

‘Cor Values’ is up for a Best Feature Rosie

Red Deer developer ordered to replant some of the levelled College Park trees

Some residents don’t believe restoration plans go far enough

Red Deer election forum set for April 11

Presented by Red Deer & District Chamber of Commerce

Local Sports: Queen’s Avery Lajeunesse not afraid to get physical

A year ago Avery Lajeunesse made a commitment to join the RDC… Continue reading

Seniors: Exposing the hype surrounding supplements

Do we need dietary supplements as we age? Do these supplements actually… Continue reading

Eight warning signs you won’t finish college

Forty per cent of students who enrol in a four-year college don’t… Continue reading

Photos: Deer spotted in Red Deer

Spring has sprung. One Advocate reader has been seeing a herd of… Continue reading

Ken Johnston competes in Sheraton Celebrity Dance Off

Sheraton Celebrity Dance Off will be held April 13

Oil field worker to show off his moves on the dance floor

Sheraton Celebrity Dance Off will be held April 13

Radio show host is Sheraton Celebrity dancer in Red Deer

VINNIE TAYLOR You may have heard Vinnie Taylor on the radio in… Continue reading

Dancing dentist of Innisfail

Sheraton Celebrity Dance Off will be held April 13

Most Read