Scotiabank reports $2.21 billion Q3 profit, down from $2.59 billion a year ago

The bank said Tuesday its net income amounted to $2.21 billion or $1.72 per diluted share for the quarter ended July 31, down from $2.59 billion or $2.09 per diluted share a year earlier.

Revenue for the quarter totalled $8.09 billion, up from $7.80 billion.

Scotiabank’s provision for credit losses totalled $819 million in its latest quarter, up from $412 million in the same quarter last year.

On an adjusted basis, the bank says it earned $1.73 per diluted share, down from an adjusted profit of $2.10 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.74 per share, according to estimates compiled by financial markets data firm Refinitiv.

“The bank delivered another quarter of stable earnings, strengthening our capital and liquidity metrics while prudently increasing loan loss allowances and managing expense growth as we navigate this period of economic uncertainty,” Scotiabank chief executive Scott Thomson said in a statement.

“Our results this quarter demonstrate early progress on our deposit growth initiatives and continued focus on balance sheet strength and stability, key priorities as we position the bank for our next phase of growth.”

Scotiabank’s Canadian banking operations earned $1.06 billion in net income attributable to equity holders, down from $1.21 billion a year earlier due to a higher provision for credit losses and non-interest expenses, partly offset by higher revenue.

The bank’s international banking business earned $628 million in net income attributable to equity holders, up from $625 million in the same quarter last year.

Scotiabank’s global wealth management operations earned $366 million in net income attributable to equity holders, down from $376 million a year earlier, while its global banking and markets business earned $434 million in net income attributable to equity holders, up from $378 million in the same quarter last year.

The bank’s “other” category reported a loss of $299 million in its latest quarter compared with a loss of $52 million a year earlier.

Scotiabank also announced the appointment of two new members to its board of directors Tuesday.

The company said former HSBC Bank Canada chief executive Sandra Stuart and Michael Medline, chief executive at Empire Company Ltd. and Sobeys Inc., have been appointed to the board.

This article was first reported by The Canadian Press

Companies in this story: (TSX:BNS, TSX:EMP.A)