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In its Q3 2024 earnings release, Scotiabank reported a net income of $1.912 billion, a decrease from $2.192 billion in the same period last year, reflecting the continued impact of a challenging economic environment. The diluted earnings per share (EPS) also declined to $1.41, down from $1.70 in Q3 2023, indicating tighter margins and heightened provisioning for credit losses.
However, when adjusted for specific items such as divestitures and legal provisions, Scotiabank’s net income stood at $2.191 billion, only slightly down from $2.207 billion a year ago. The adjusted EPS was $1.63, compared to $1.72 in the same period last year, showcasing the bank’s ability to maintain relative stability amid adversity.
The bank’s Canadian Banking segment delivered a robust performance with adjusted earnings of $1.1 billion, marking a 6% increase year-over-year. This growth was driven by strong revenue from deposit momentum and net interest margin expansion, although it was partially offset by an increase in credit loss provisions.
International Banking also saw a 10% rise in adjusted earnings to $709 million, fueled by solid revenue growth and expense discipline, despite higher credit loss provisions. Global Wealth Management outperformed with an 11% increase in adjusted earnings to $418 million, supported by higher fee-based client assets and positive operating leverage.
Global Banking and Markets, however, reported a decline in earnings by 4% year-over-year to $418 million, primarily due to higher credit loss provisions and increased investments to support business growth.
The bank’s capital position remains strong with a Common Equity Tier 1 (CET1) ratio of 13.3%, an improvement from 12.7% in the previous year, bolstered by internal capital generation and strategic investments.
CEO Scott Thomson highlighted the bank’s strategic progress and the resilience of its diversified business lines. He emphasized Scotiabank’s commitment to strengthening its balance sheet and enhancing long-term profitability through strategic initiatives, including a notable investment in KeyCorp, which is expected to diversify and grow the bank’s U.S. business.
As Scotiabank continues to navigate a complex financial landscape, its focused strategy and capital discipline are key to sustaining its financial performance while positioning for future growth .
