Scotiabank Quartely Profit Triples

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The Bank of Nova Scotia saw its fourth quarter net income nearly from the same period last year, which its profit was eroded by several accounting provisions.

Scotiabank is the last of Canada’s “Big Six” to report its fourth quarter results, and has noted that its net income was $902 million or 83 cents per share for the quarter that ended October 31st.

This is up from a year ago profit of $315 million or 28 cents per share.

Scotiabank has also said that the year to year increase in profit largely reflects a recovery from $642 million in after tax charges in 2008’s fourth quarter, as well as the impact of new acquisitions.

However, this was partially offset by the negative impact of foreign currency translation and an increase in provisions for credit losses.

The provision for credit losses was $420 million in the fourth quarter, which was up $213 million from last year.

Scotiabank has noted that its year over year provisions rose across all its business line due to global economic conditions. Scotiabank set aside $424 million in specific provisions and saw a $4 million reduction in the automotive sectoral allowance, which was reclassified to specific provisions.

Scotiabank pointed out that the total provision was still down $134 million from the last quarter due to an increase of $100 million in the general allowance in the prior quarter and lower provisions in Scotia Capital.

Revenues have totalled $3.7 billion, up from $2.5 billion last year; revenues on a taxable equivalent basis came to $3.8 million for the quarter, up by $1.2 million from last year.

For fiscal 209, Scotiabank reported net income was $3.5 billion, up 13% from last year, with earnings per share of $3.31 compared to $3.05 in 208.

Scotiabank’s Canadian banking sector saw an 8% increase in net income from 2008 levels as its benefited from increases in residential mortgages and revolving credit.

Scotia Capital’s report net income was $353 million, up $4 million from the fourth quarter in 2008; it was noted that the gains were made in credit fees, investment banking revenues and strong trading activities. However, these were offset by lower loan volumes and foreign exchange revenues.

Scotiabank’s international banking division has a profit of $283 million, up from $227 million a year ago. This is largely due to contributions from acquisitions and growth in retail loans.

Scotiabank is expected to see continues growth in 2010, with solid contributions from each of its business lines as global economy transitions from recession to recovery.

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