Return on equity was 17.6% in the second quarter of 2009 compared to 21.4% last year and 16.9% last quarter. Additionally, a dividend of 49 cents per common share was announced.
Rick Waugh, President and CEO, said: “Solid underlying performances in Canadian and International Banking and a record quarter from Scotia Capital allowed us to earn through higher credit provisions and a challenging economic environment, compared to last year. As expected, earnings were impacted by rising provisions for credit losses across all business lines due to the current economic environment, including an increase in our general allowance and a sectoral allowance for auto exposures. We are well prepared for this stage of the credit cycle, and our loan portfolios are performing within planned risk tolerances. We will continue to prudently manage exposures across industries and geographies.”
“Our capital strength and continued profitability provides sustainable support for our dividend, which we are maintaining at 49 cents per common share, and gives the Bank considerable flexibility to pursue growth across all our business lines. Although the unpredictable impact of the global economy and ongoing uncertainty in financial markets will continue to put pressure on the Bank’s results this year, we are confident that we have taken appropriate action to respond to current challenges,” he added.
