Scotiabank up 2% after topping estimates

|By:, SA News Editor

FQ4 profit of $2B or $1.58 per share came was up 8% from a year ago and came against estimates for just $1.51. The dividend was maintained at $0.74.

Ex-restructuring charges, full-year profit rose 6% Y/Y, and ROE for the year was 14.3%.

Speaking on the earnings call, CEO Brian Porter expects similar adjusted profit growth next year, along with ROE in the 14% area as the restructuring starts to pay off.

Of Canada's bubbly housing market, CFO Sean McGuckin is "very comfortable with our residential mortgage book." He says changes emanating from Ottawa will slow mortgage loan growth, but he expects to maintain, if not build market share.

TD Bank upgrades Scotiabank (BNS +2.1%) to Action List Buy.