Scotiabank has reported a net income of CAD2.32bn ($1.75bn) for the first quarter ended 31 January 2020, a 3.5% increase compared to CAD2.24bn ($1.69bn) for the same period last year.
In the preceding quarter that ended 31 October 2019, the Canadian multinational banking company had a net income of CAD2.3bn.
Diluted earnings per share (EPS) of the banking group in Q1 2020 were CAD1.84, which is 8% more than the figure of CAD1.71 in Q1 2019 that ended 31 January 2019.
Scotiabank’s adjusted net income in Q1 2020 was up by 2% to CAD2.34bn while the EPS grew 5% to CAD1.83 from CAD1.75 in Q1 2019.
The bank’s total revenue for the first quarter of 2020 moved up from CAD7.6bn in Q1 2019 to CAD8.14bn.
Return on equity moved up from 13.5% in the previous year to 14.2% in the reported quarter.
Segment-wise Q1 2020 results of Scotiabank
The Canadian banking business reported a net income attributable to equity holders of CAD852m in Q1 2020, which was down by 1% compared to the same quarter in the year before.
The unit’s adjusted earnings surged 5% year-over-year owing to a strong volume growth along with higher non-interest income, said Scotiabank.
Compared to Q1 2019, the international banking business saw a 28% drop in net income attributable to equity holders in Q1 2020 at CAD518m. The international banking unit is said to have witnessed strong loan and deposit growth in the Pacific Alliance.
The global wealth management business reported a net income attributable to equity holders of CAD306m in the first quarter of 2020, which marked an increase of 12% compared to Q1 2019. According to Scotiabank, positive results generated by the unit were due to robust assets under management (AUM) growth and strong sales growth across various channels.
The global banking and markets unit recorded 11% growth in its net income attributable to equity holders in Q1 2020, at CAD372m. The unit’s adjusted earnings were up by 35% compared to the first quarter of 2019 with strong performance seen across the trading businesses and also due to asset growth across the footprint, said the Canadian banking group.
Scotiabank president and CEO Brian Porter said: “We are pleased with our results this quarter which demonstrate the strength of our diversified businesses. We are focused on realizing the benefits from our technology investments through an improved productivity ratio and greater customer satisfaction.
“We are confident in our future as the leading bank in the Americas. The repositioning of the Bank’s geographic footprint has simplified and focused the Bank and we are positioned to deliver consistent returns and growth to our shareholders.”
