Scotiabank reports profit of $2.31B, meets analyst expectations
The Bank of Nova Scotia is expecting a strong performance from its Canadian banking segment next year driven by higher contributions from business banking, credit cards and growth of Tangerine digital banking.
The bank's domestic operations are forecast to contribute 30 to 40 per cent of all bank earnings in 2020, with international banking at 25 to 30 per cent, global banking and markets at 15 to 20 per cent and global wealth management at about 15 per cent.
"In Canada, economic activity remains solid in light of strong population growth driven by immigration, robust employment and wage growth, accommodative monetary policy, a stronger housing market and good levels of business and consumer confidence," CEO Brian Porter said Tuesday during a conference call to discuss fourth-quarter results.
"We continue to believe that a recession is unlikely here in Canada or in the U.S. in the near term."
The bank anticipates modest improvement in global growth in 2020 despite trade tensions between the U.S. and China. But it sees a slight slowing of growth in the U.S. as the waning impacts of the 2018 tax decreases and trade uncertainty weigh on the economy despite resilient consumer confidence.
Scotiabank says competition in the credit card market will intensify as Air Canada relaunches its Aeroplan loyalty program next spring.
The bank said it earned $2.31 billion for the three-month period ended Oct. 31 compared with a profit of $2.27 billion in the same quarter last year. The profit amounted to $1.73 per diluted share for the quarter, up from $1.71 a year ago.
Adjusted for acquisitions and divestitures, Scotiabank says it earned $1.82 per diluted share, up from $1.77 per diluted share last year.
The results matched analyst expectations, according to financial markets data firm Refinitiv.
Porter said the bank delivered improved fourth-quarter results to end a productive year for the bank.
"We made considerable strides in repositioning the bank as a stronger, more focused business while maintaining high degree of diversification to manage risk and optionality to fuel future growth," he told analysts.