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The Bank of Nova Scotia (NYSE:BNS), or Scotiabank for short, posted better-than-expected fiscal Q3 earnings as net interest income climbed from both the prior and year-ago quarters. Its Canadian Banking and Global Wealth Management units saw adjusted net income rising both Q/Q and Y/Y.
Average loans increased during the quarter, while its average deposits dropped.
Fiscal Q3 adjusted EPS of C$1.63 (US$1.21), beating the Visible Alpha consensus of C$1.60, rose from C$1.58 in the prior quarter and dropped from C$1.72 a year ago.
Scotiabank (BNS) ordinary shares slipped 0.8% in Tuesday premarket trading.
Net interest income for the quarter ended July 31, 2024, grew to C$4.86B (US$3.61B) from C$4.69B in Q2 and C$4.57B in Q2 2023.
Noninterest income of C$3.50B declined from C$3.65B in the previous quarter and crept up from C$3.49B in the year-ago period. The Y/Y rise/dip was driven by.
Scotiabank's (BNS) total revenue of C$8.36B climbed from C$8.35B in Q2 and C$8.07B in Q3 2023.
Its provision for credit losses increased to C$1.05B from C$1.01B in the prior quarter and C$819M a year ago.
Noninterest expenses of C$4.95B rose from C$4.71B in Q2 and C$4.56B in Q3 2023.
Common equity tier 1 capital ratio of 13.3% improved from 13.2% in the prior period and 12.7% a year ago.
Average total loans and acceptances of C$780B increased from C$757B in Q2. Average deposits of C$685B slipped from C$705B in the prior quarter.
"Through a continued challenging environment, we achieved quarter over quarter EPS growth from balanced business line results while further strengthening our balance sheet," said President and CEO Scott Thomson.
Canadian Banking adjusted net income of C$1.11B climbed 10% Q/Q and 6% Y/Y.
Global Wealth Management adjusted net income of C$415M increased 7% Q/Q and 11% Y/Y. Revenue rose 10% Y/Y to $1.47B on higher brokerage revenue and net interest income in Canada and higher mutual fund fees.
Global Banking and Markets net income of C$418M slipped 2% Q/Q and 4% Y/Y. Business Banking revenue increased 8% Y/Y and Capital Markets revenue dropped 8% Y/Y.
International Banking adjusted net income of C$674M fell 1% Q/Q and rose 6% Y/Y.
Conference call at 8:15 AM ET.
Earlier, Bank of Nova Scotia non-GAAP EPS of C$1.63, revenue of C$8.36B