{"id":530701,"date":"2021-08-24T05:33:20","date_gmt":"2021-08-24T09:33:20","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/scotiabank-reports-third-quarter-results\/"},"modified":"2021-08-24T05:33:20","modified_gmt":"2021-08-24T09:33:20","slug":"scotiabank-reports-third-quarter-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/scotiabank-reports-third-quarter-results\/","title":{"rendered":"Scotiabank reports third 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 July 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Our complete Third Quarter 2021 Report to Shareholders, including our unaudited interim financial statements for the period ended July 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>. Supplementary Financial Information is also available, together with the Third 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

\u00a0<\/p>\n

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

\n
\n Third Quarter Highlights on a Reported basis (versus Q3 2020)<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

\n
\n Third Quarter Highlights on an Adjusted basis(<\/sup><\/b>
\n
\n
\n 1<\/b>
\n <\/b>
\n )<\/b>
\n <\/sup>
\n \u00a0(versus Q3 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 $2,542 million, compared to $1,304 million<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Net income of $2,560 million, compared to $1,308 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 $1.99, compared to $1.04<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Earnings per share (diluted) of $2.01, compared to $1.04<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

\n

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

\n

\n Return on equity of 15.0%, compared to 8.3%<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n Return on equity of 15.1%, compared to 8.3%<\/span>\n <\/p>\n<\/td>\n<\/tr>\n<\/table><\/div>\n

\n

\n TORONTO<\/span>, Aug. 24, 2021<\/span> \/CNW\/ – Scotiabank reported third quarter net income of $2,542 million<\/span> compared to $1,304 million<\/span> in the same period last year. Diluted earnings per share (EPS) were $1.99<\/span>, up 91% from $1.04<\/span> in the previous year. Return on equity was 15.0%, up from 8.3% in the previous year.<\/p>\n

Adjusted net income(1) <\/sup>\u00a0increased 96% to $2,560 million<\/span> and diluted EPS of $2.01<\/span>, increased 93% compared to the prior year. Return on equity was 15.1% compared to 8.3% a year ago.<\/p>\n

“We delivered another quarter of strong results, with contributions from all our operating segments, reflecting the benefits of a well-diversified business model. While the economic recovery is unfolding at different rates across our footprint, I’m very proud of the Scotiabank team’s on-going resilience and continued commitment to our customers,” said Brian Porter<\/span>, President and CEO of Scotiabank.<\/p>\n

“During the quarter, the Bank was recognized as the Most Innovative in Data by The Banker’s<\/i> Global Innovation in Digital Banking Awards 2021. This award recognizes our commitment to data and analytics and highlights our ability to identify and support our most vulnerable customers. We are also proud to highlight the Bank’s recent closing of its inaugural USD $1 billion<\/span> 3-year sustainability bond offering, the largest sustainability bond issued by a Canadian corporate to date. This offering is yet another example of our social responsibility initiatives in support of our commitment to making a positive impact and creating better communities for every future.”<\/p>\n

Canadian Banking generated strong earnings of $1,083 million<\/span>, driven by higher non-interest income, lower provision for credit losses, as well as strong asset and deposit growth.<\/p>\n

Global Wealth Management’s earnings of $397 million<\/span> were supported by strong revenue growth, positive operating leverage for the seventh consecutive quarter, and a 17% growth in AUM and AUA on higher net sales.<\/p>\n

Global Banking and Markets reported earnings of $513 million<\/span> supported by strong performance in our advisory and capital markets businesses. <\/p>\n

International Banking generated earnings of $493 million<\/span> demonstrating continuing growth momentum across our key markets. <\/p>\n

With a Common Equity Tier 1 capital ratio of 12.2% the Bank remains 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<\/table><\/div>\n

\n Financial Highlights<\/b>\n <\/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\u00a0nine\u00a0months\u00a0ended<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

\n
\n July 31\u00a0 <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n April 30\u00a0 <\/span>\n <\/p>\n<\/td>\n

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

\n July 31\u00a0 <\/span>\n <\/p>\n<\/td>\n

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

\n
\n July 31\u00a0 <\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n July 31\u00a0 <\/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 4,217<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 4,176<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 4,253<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 12,744<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 13,062<\/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 3,540<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 3,560<\/span>\n <\/p>\n<\/td>\n

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

\n 3,481<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 10,821<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 10,769<\/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 7,757<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 7,734<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 23,565<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 23,831<\/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 380<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 2,181<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 1,640<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 4,953<\/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 4,097<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 4,018<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 12,347<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 12,799<\/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 738<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 742<\/span>\n <\/p>\n<\/td>\n

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

\n 231<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 2,182<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 1,125<\/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 2,542<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1,304<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 7,396<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 4,954<\/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 \u00a0\u00a0\u00a0\u00a0\u00a0 subsidiaries<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 81<\/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 (51)<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 261<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 3<\/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 2,461<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1,355<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 7,135<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 4,951<\/span>\n <\/p>\n<\/td>\n<\/tr>\n

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

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

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

\n
\n 35<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

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

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

\n 23<\/span>\n <\/p>\n<\/td>\n

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

\n
\n 155<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

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

\n 114<\/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 2,426<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 2,289<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 1,332<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 6,980<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 4,837<\/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 <\/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 2.00<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1.10<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 5.75<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 3.99<\/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 1.99<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

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

\n

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

\n

\n 1.04<\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n
\n 5.73<\/b>
\n <\/span>\n <\/p>\n<\/td>\n

\n

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

\n

\n 3.88<\/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 Third 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