{"id":441492,"date":"2021-02-23T06:03:42","date_gmt":"2021-02-23T11:03:42","guid":{"rendered":"http:\/\/www.marketnewsdesk.com\/?p=441492"},"modified":"2021-02-23T06:03:42","modified_gmt":"2021-02-23T11:03:42","slug":"scotiabank-reports-first-quarter-2021-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/scotiabank-reports-first-quarter-2021-results\/","title":{"rendered":"Scotiabank reports first quarter 2021 results"},"content":{"rendered":"
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Canada NewsWire<\/p>\n<\/p><\/div>\n

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\n All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended January 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Our complete First Quarter 2021 Report to Shareholders, including our unaudited interim financial statements for the period ended January 31, 2021, can also be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC’s website at www.sec.gov<\/a>. In addition, Supplementary Financial Information is also available, together with the First Quarter 2021 Report on the Investor Relations page of www.scotiabank.com<\/a>.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

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\n\n\n\n\n\n\n
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\n
\n First Quarter Highlights on a Reported basis (versus Q1 2020)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n First Quarter Highlights on an Adjusted basis(1<\/b>)<\/sup> (versus Q1 2020)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

\n

\n Net income of $2,398 million, compared to $2,326 million<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

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\n Net income of $2,418 million, compared to $2,344 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

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\n Earnings per share (diluted) of $1.86, compared to $1.84<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

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\n Earnings per share (diluted) of $1.88, compared to $1.83<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

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\n Return on equity of 14.2%, unchanged from the previous year<\/span>\n <\/p>\n<\/td>\n

\n

\n \u2022<\/span>\n <\/p>\n<\/td>\n

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\n Return on equity of 14.4%, compared to 13.9%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

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\n TORONTO<\/span>, Feb. 23, 2021<\/span> \/CNW\/ – Scotiabank reported first quarter net income of $2,398 million<\/span> compared to $2,326 million<\/span> in the same period last year. Diluted earnings per share (EPS) was $1.86<\/span>, up 1% from $1.84<\/span> in the previous year. Return on equity was 14.2%, unchanged from the previous year.<\/p>\n

Adjusted net income(1) <\/sup>of $2,418 million<\/span> and EPS of $1.88<\/span>, increased 3% compared to the prior year. Return on equity was 14.4% compared to 13.9% a year ago.<\/p>\n

“The Bank’s performance this quarter reflects the strength of our diversified business platform with all four business lines making a strong contribution to earnings. We demonstrated positive revenue growth and solid expense discipline to produce high quality earnings and generate positive operating leverage in all our businesses. Our CET1 ratio of 12.2% provides us with additional flexibility for capital deployment in the future. We also witnessed continued strength in digital adoption across all our core markets. As we emerge from the pandemic, I am confident of continued strong performance across the Bank” said Brian Porter<\/span>, President and CEO of Scotiabank. <\/p>\n

Canadian Banking generated adjusted earnings of $915 million<\/span>. Earnings recovered to pre-COVID levels driven by solid asset and deposit growth, strong fee income, stable margins and improving credit trends.<\/p>\n

International Banking generated adjusted earnings of $398 million<\/span>, driven by good performance in the Pacific Alliance countries and stable margins.<\/p>\n

Global Wealth Management reported adjusted earnings of $425 million<\/span>, up 34% from the prior year. The results were supported by seasonally higher performance fees and strong contributions from iTRADE, market appreciation, solid sales momentum and double-digit growth across our Canadian businesses. AUM and AUA increased 5% and 10% from the prior year, respectively.<\/p>\n

Global Banking and Markets had a strong start to the year with earnings of $543 million<\/span>, up 20% compared to the prior year. The results were driven by strong performance across our capital markets and investment banking businesses. <\/p>\n

The Bank reported a strong Common Equity Tier 1 capital ratio of 12.2%, a strong position from which to continue to support its customers and drive future growth.<\/p>\n

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\n ____________________________________<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n (1) <\/sup>Refer to Non-GAAP Measures section on page 2.<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

Financial Highlights<\/p>\n

\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n
\n Reported Results<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n For\u00a0the\u00a0three\u00a0months\u00a0ended<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n \n <\/td>\n\n

\n
\n January 31<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n October 31<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n January 31<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n (Unaudited)($ millions)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 2021<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2020<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 2020<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net interest income<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 4,351<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,258<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 4,392<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Non-interest income<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 3,721<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3,247<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 3,749<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Total revenue<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 8,072<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 7,505<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 8,141<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Provision for credit losses<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 764<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 1,131<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 926<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n Non-interest expenses<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

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\n 4,208<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4,057<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 4,418<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Income tax expense<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 702<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 418<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 471<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n
\n Net income<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2,398<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,899<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2,326<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net income attributable to non-controlling interests in <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

\n \u00a0 subsidiaries<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 90<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 72<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 39<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n Net income attributable to equity holders of the Bank<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2,308<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,827<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2,287<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Preferred shareholders and other equity instrument<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n \u00a0\u00a0 holders<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n
\n 43<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 82<\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n

\n 25<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Common shareholders<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 2,265<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1,745<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 2,262<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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\n
\n Earnings per common share <\/b>
\n (in dollars)<\/i>
\n <\/span>\n <\/p>\n<\/td>\n

\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n \n <\/td>\n\n

\n Basic<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 1.87<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.44<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.86<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n \n <\/td>\n\n

\n Diluted<\/span>\n <\/p>\n<\/td>\n

\n

\n
\n $<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n 1.86<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.42<\/span>\n <\/p>\n<\/td>\n

\n

\n $<\/span>\n <\/p>\n<\/td>\n

\n

\n 1.84<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n Non-GAAP Measures <\/b>\n <\/p>\n

The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these or similar measures. The Bank believes that certain non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this press release and are defined in the “Non-GAAP Measures” section in the First Quarter 2021 Report to Shareholders.<\/p>\n

Adjusted results and diluted earnings per share <\/p>\n

The following table presents reconciliations of GAAP reported financial results to non-GAAP adjusted financial results. The adjustments summarized below are consistent with those described in the Bank’s 2020 Annual Report. For a complete description of the adjustments, refer to the Non-GAAP measures section in the Bank’s 2020 Annual Report:<\/p>\n

Adjustment impacting current and prior periods:<\/p>\n