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The Globe and Mail

Scotia earnings rise 11% on acquisitions, loan growth

A customer walks into the Scotiabank on Spring Garden road in Halifax, Nova Scotia, March 3, 2009.


Scotiabank said profit climbed 11 per cent in the fourth quarter as the bank grew by acquisition and increased its loans.

Scotiabank said net income rose to $1.24-billion, or $1.08 per basic share outstanding, from $1.15-billion, or $1 per share.

Like the other banks that have reported, Scotia is making less on every dollar it lends out, and offsetting that with increased loan volume. Canadian banking net income rose 4 per cent. Profit in international banking and wealth management rose thanks to acquisitions.

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Capital markets were a drag on profit, as the bank's Scotia Capital business reported a drop in profit amid a global rough patch for markets.

"Global prospects are being pressured again by the recurring financial market volatility resulting from the euro zone's sovereign debt crisis and the political delay in finalizing the United States' deficit-reduction plan," Scotia said in a release. Scotia said it should benefit from faster growth in Canada and emerging economies where it does business, such as Latin America.

"Our exposures are very limited in the areas of concern and our focus is on client-driven business and adding customers, particularly in the higher growth markets. As a result, Scotiabank expects continued growth through this business cycle and beyond."

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