Scotiabank Posts Lower Trading Revenue -- Update

By Austen Hufford Features Dow Jones Newswires

Bank of Nova Scotia said profit rose in its latest quarter as a decline in expenses helped offset lower revenue from stock trading.

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Toronto-based Scotiabank, one of Canada's largest banks by assets, on Tuesday said it earned $2.06 billion Canadian dollars ($1.53 billion) in the quarter ended April 30, up from C$1.58 billion a year earlier. The prior quarter included a C$378 million restructuring charge.

On a per-share basis, earnings climbed to C$1.62 from C$1.23.

Revenue fell 0.2% to C$6.58 billion due to lower equity trading revenue, lower net gains on investments and foreign currency translation.

Analysts polled by Thomson Reuters had expected earnings per share of C$1.56 and revenue of C$6.74 billion.

The bank also said it would repurchase up to 24 million of its shares, or about 2% of total shares outstanding. The repurchase program is valued at about C$1.83 billion.

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Scotiabank said the global economy continues to improve, with the U.S. economy continuing to be in a "sweet spot" of accelerating growth. Still, it noted that the U.S. Federal Reserve may need to be more aggressive in managing the economy.

Chief Executive Brian Porter said results were strong across the bank's three business lines.

The bank, which bills itself as Canada's most international bank, also said it had particularly strong results in the so-called Pacific Alliance, a trading bloc including Chile, Colombia, Mexico and Peru.

The bank said fee-based income fell 7.3% to C$2.85 billion as net interest income rose 6% to C$3.73 billion. Expenses fell 5.7%.

The loan-loss provision -- the amount of money set aside to cover soured loans -- fell 22% to C$587 million, due to improvements in the energy sector. The bank said it had to increase its provision to cover retail loan losses.

Write to Austen Hufford at

(END) Dow Jones Newswires

May 30, 2017 09:30 ET (13:30 GMT)