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Scotiabank grows after year of repositioning

Canadian financial house Scotiabank today reported net income of CD$8,798 million in 2019, compared with net income of CD$8,724 million in 2018. 

Scotiabank reported net income of CD$8,798 million. (Photo: Winnifred Free Press)

“We delivered improved fourth-quarter results to end a productive year for the Bank. In 2019, we made significant progress against our strategic objectives by sharpening our geographic footprint and improving our business mix. We’ve also invested heavily in our people, processes, and technology to better position the Bank for success over the long-term,” said Brian Porter, president and CEO of Scotiabank.

Return on equity was 13.1 per cent, compared to 14.5 per cent in the previous year.

“Our geographic repositioning efforts are substantially complete, giving us greater scale, lower operating risk, and more opportunities for growth.”

– Scotiabank President and CEO, Brian Porter

Adjusting for the Acquisition and divestiture-related amount) of CD$611 million after-tax figure (CD$593 million pre-tax), net income increased three per cent to CD$9,409 million and EPS rose to CD$7.14 from CD$7.11 in the previous year. Canadian banking generated earnings of CD$4,424 million in 2019, driven by asset and deposit growth, margin expansion, and higher wealth management earnings.

The company reported that International Banking delivered double-digit earnings growth with reported earnings of CD$3,387 million in 2019. The business, it was noted, successfully integrated a number of acquisitions during the year.

Scotiabank President and CEO, Brian Porter (Photo: Scotiabank)

Porter said, “Our geographic repositioning efforts are substantially complete, giving us greater scale, lower operating risk, and more opportunities for growth.”

He added, “Strategically, we set a course to become a more focused bank. As a result of this effort, we have repositioned our international footprint, improved our business mix and are now realising the benefits of our investments in digital.”