leadf
logo-loader
viewBank of Nova Scotia

Bank of Nova Scotia trounces 1Q profit estimate helped by its domestic and international businesses

Scotiabank is seeing robust growth from its international business where it is expanding across Peru, Mexico, Chile and Colombia

Canadian dollars
Scotiabank also escaped a slowdown in Canada's housing market by tacking on higher mortgage rates

Bank of Nova Scotia (NYSE:BNS), one of Canada’s biggest lenders, trounced expectations for its first-quarter profits Tuesday, helped along by robust business from both its domestic and international units.

Scotiabank escaped a slowdown in Canada’s housing market as the Bank of Canada’s interest rate rises allowed for higher mortgage rates. It also saw robust growth in earnings from its international business, where it is expanding across Peru, Mexico, Chile and Colombia.

"Recently announced acquisitions in Chile, Colombia and Peru, all expected to close in the second half of this fiscal year, will further grow our customer base and improve our presence in the Pacific Alliance region,” said Brian Porter, Scotiabank’s president and chief executive, in a statement.

Its earnings per share for the quarter ending March 31 came to US$1.70, up from US$1.62 per share in the year-ago quarter and a far better performance than the US$1.67 per share Wall Street had expected.

The bank’s net income for the quarter amounted to US$2.18bn, up from US$2.1bn in the same-period a year ago. Its revenue, meanwhile, came to US$7.79bn in the period.

Separately, the bank announced that it will purchase up to 24mln of its common shares, or about 2% of its shares outstanding.

In the quarter, Scotiabank’s Tier 1 capital ratio, a critical indicator of a bank’s financial strength jumped to 12%, which suggests the bank is in a strong position to make further acquisitions.

In pre-market trade, Bank of Nova Scotia’s shares were flat at US$61.79.

Quick facts: Bank of Nova Scotia

Price: 56.66 CAD

TSX:BNS
Market: TSX
Market Cap: $68.64 billion
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

FenixOro Gold continues aggressive drill program at their Abriaqui Project...

FenixOro Gold (CSE: FENX-OTCQB: FDVXF) CEO John Carlesso joined Steve Darling from Proactive to bring details about their drilling program that is ongoing at their gold silver and copper project in Colombia. That project is called Abriaqui and sits along a very mineralized belt. Carlesso...

in 2 hours, 32 minutes

2 min read