{"id":499779,"date":"2021-06-01T06:07:32","date_gmt":"2021-06-01T10:07:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/scotiabank-reports-second-quarter-results\/"},"modified":"2021-06-01T06:07:32","modified_gmt":"2021-06-01T10:07:32","slug":"scotiabank-reports-second-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/scotiabank-reports-second-quarter-results\/","title":{"rendered":"Scotiabank reports second quarter results"},"content":{"rendered":"
\n

Canada NewsWire<\/p>\n<\/p><\/div>\n

\n
\n\n\n
\n

\n All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Our complete Second Quarter 2021 Report to Shareholders, including our unaudited interim financial statements for the period ended April 30, 2021, can also be found on the SEDAR website at www.sedar.com<\/a>\u00a0and on the EDGAR section of the SEC’s website at www.sec.gov<\/a>. Supplementary Financial Information is also available, together with the Second Quarter 2021 Report to Shareholders on the Investor Relations page of www.scotiabank.com<\/a><\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n

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

\n
\n Second Quarter Highlights on a Reported basis (versus Q2 2020)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Second Quarter Highlights on an Adjusted basis(<\/sup><\/b>
\n
\n
\n 1<\/b>
\n <\/b>
\n )<\/b>
\n <\/sup>
\n \u00a0(versus Q2 2020)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n Net income of $2,456 million, compared to $1,324 million<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Net income of $2,475 million, compared to $1,371 million<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n Earnings per share (diluted) of $1.88, compared to $1.00<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Earnings per share (diluted) of $1.90, compared to $1.04<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

\n \u2022\u00a0\u00a0<\/span>\n <\/p>\n<\/td>\n

\n

\n Return on equity of 14.8%, compared to 7.9%<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Return on equity of 14.9%, compared to 8.2%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n

\n TORONTO<\/span>, June 1, 2021<\/span> \/CNW\/ –\u00a0Scotiabank reported second quarter net income of $2,456 million<\/span> compared to $1,324 million<\/span> in the same period last year. Diluted earnings per share (EPS) was $1.88<\/span>, up 88% from $1.00<\/span> in the previous year. Return on equity was 14.8%, up from 7.9% in the previous year.<\/p>\n

Adjusted net income(1) <\/sup>\u00a0increased 81% to $2,475 million<\/span> and EPS of $1.90<\/span>, increased 83% compared to the prior year. Return on equity was 14.9% compared to 8.2% a year ago.<\/p>\n

“We delivered another quarter of strong results reflecting the strength of our diversified business platform, and the solid economic recovery underway in our core markets,” said Brian Porter<\/span>, President and CEO, Scotiabank.\u00a0 “Our commitment to superior customer service was recognized in the J.D. Power 2021 Canada Retail Banking Satisfaction Study where the Bank rose to #2 among large banks and Tangerine was recognized as number one for the tenth consecutive year among mid-sized retail banks. Our commitment to strong ESG practices was also recognized with a rating of “AAA” in the MSCI ESG Ratings(2)<\/sup> assessment, a rating held by only 2% of banks globally. We are very proud of these accomplishments.”<\/p>\n

Canadian Banking generated earnings of $931 million<\/span> with a strong rebound in fee income, lower provision for credit losses, as well as solid asset and deposit growth.<\/p>\n

Global Wealth Management’s earnings of $378 million<\/span> were supported by strong revenue growth, positive operating leverage for the sixth consecutive quarter, and strong net sales. AUM and AUA increased 19% and 20% from the prior year, respectively. <\/p>\n

Global Banking and Markets reported earnings of $517 million<\/span>, driven by continued solid performance in the capital markets business, particularly equities, good deposit growth and lower provision for credit losses.\u00a0 The advisory pipeline remains strong for the balance of the year. <\/p>\n

International Banking generated earnings of $429 million<\/span>, trending positively from the prior quarter, aided by strong economic recovery across the Pacific Alliance.<\/p>\n

The Bank reported a Common Equity Tier 1 capital ratio of 12.3% and remains very well capitalized to support its strategic growth plans.<\/p>\n

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

\n

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

\n

\n
\n (2)<\/sup>\u00a0The use by Scotiabank of any MSCI ESG Research LLC or its affiliates (“MSCI”) data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of Scotiabank by MSCI. MSCI services and data are the property of MSCI or its information providers and are provided ‘as-is’ and without warranty. MSCI names and logos are trademarks or service marks of MSCI.<\/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 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

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

\n For\u00a0the\u00a0six\u00a0months\u00a0ended<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

\n
\n April 30<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n April 30<\/span>\n <\/p>\n<\/td>\n

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

\n
\n April 30<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n April 30<\/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 2021<\/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
\n 2021<\/b>
\n <\/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 4,176<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 4,417<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 8,527<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 8,809<\/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 3,560<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 3,539<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 7,281<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 7,288<\/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 7,736<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 7,956<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 15,808<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 16,097<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n
\n 496<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 1,846<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 1,260<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 2,772<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n
\n 4,042<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 4,363<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 8,250<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 8,781<\/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 742<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 423<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 1,444<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 894<\/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 2,456<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1,324<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 4,854<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 3,650<\/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\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n\n \n <\/td>\n<\/tr>\n
\n

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

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

\n 15<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 180<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 54<\/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 2,366<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1,309<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 4,674<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 3,596<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n
\n 77<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 66<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 120<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 91<\/span>\n <\/p>\n<\/td>\n<\/tr>\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 2,289<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1,243<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 4,554<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 3,505<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

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

\n

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

\n

\n
\n 1.89<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1.03<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 3.76<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 2.89<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

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

\n

\n
\n 1.88<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1.00<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 3.74<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 2.84<\/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 Second Quarter 2021 Report to Shareholders.<\/p>\n

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