Scotiabank reports $1.69B Q4 profit, up from $1.35B a year ago

Scotiabank reported a fourth-quarter profit of $1.69 billion, up from $1.35 billion in the same period last year, as it set aside a smaller amount for bad loans compared with a year ago.

The bank said Tuesday the profit amounted to $1.22 per diluted share for the quarter ended Oct. 31, up from 99 cents in the same quarter a year ago.

Revenue for the quarter totalled $8.53 billion, up from $8.27 billion in the bank’s fourth quarter last year.

The bank’s provisions for credit losses amounted to $1.03 billion in its fourth quarter, down from $1.26 billion a year ago.

On an adjusted basis, Scotiabank says it earned $1.57 per diluted share in its latest quarter, up from an adjusted profit of $1.23 per diluted share a year ago.

The average analyst estimate had been for an adjusted profit of $1.60 per share, according to data provided by LSEG Data & Analytics.

“While I am encouraged by our strategic progress to date, there is significant work ahead as we focus on client primacy initiatives to drive enhanced profitability across our businesses,” Scotiabank chief executive Scott Thomson said in statement.

Scotiabank is the first of Canada’s big banks to report its fourth-quarter results this week. Royal Bank of Canada and National Bank of Canada report Wednesday, while Toronto-Dominion Bank, BMO Financial Group and CIBC report Thursday morning.

Scotiabank said its Canadian banking operations amounted to $1.06 billion for the quarter, up from $793 million in the same quarter last year, due primarily to lower provisions for credit losses and higher revenue, partly offset by higher non-interest expenses.

Scotiabank’s international banking operations earned a profit of $628 million attributable to equity holders of the bank, up from $548 million a year earlier, while the bank’s global wealth management business earned $420 million attributable to equity holders, up from $327 million a year ago.

The bank’s global banking and markets business earned $403 million, down from $414 million in the same quarter last year.