Bank of Nova Scotia (TSX:BNS) (NYSE:BNS) reported on Tuesday lower third quarter earnings and net income but the market's focus is on its acquisition of Montreal-based money manager Jarislowsky Fraser and other companies that should pay off for the bank in the months ahead.
Earnings per share came in at C$1.55 compared with C$1.66 a year ago, while net income fell to C$1.94bn from C$2.1bn, the company said.
Shares of the bank closed on Monday up 0.6% to C$78.30 in Toronto.
READ: Bank of Nova Scotia trounces 1Q profit estimate helped by its domestic and international businesses
Jarislowsky Frasier is one of around six deals which had been announced by the bank over the last nine months as the lender committed about C$7bn to acquisitions in Canada and outside the country. Another acquisition is BBVA Chile, which the company said could "further strengthen the bank's platform."
The bank said that excluding acquisition-related costs of C$453mln before tax to provision for credit losses, the net income reached C$2.26bn.
Toronto-based Bank of Nova Scotia, or operating as Scotiabank, is the third-largest bank in Canada by deposits and market capitalization. The bank has more than 24mln customers in over 50 countries around the world.