Scotiabank Q2 Profit Climbs; To Buy Back Shares - Quick Facts

(RTTNews) - Canadian financial services provider Bank of Nova Scotia (BNS, BNS.TO) or Scotiabank posted 14.0 percent higher second-quarter net income of C$1.8 billion, compared with C$1.58 billion, a year before, reflecting good volume growth, higher interest margins, positive operating leverage and the favourable impact of foreign currency translation. Partly offsetting were increased provisions for credit losses and a higher income tax rate, the Bank added.

For the quarter, net income attributable to common shareholders grew year-over-year to C$1.7 billion, from C$1.47 billion. Quarterly earnings per share were C$1.39, a 14.0 percent increase from C$1.22, reported last year. On average, 13 analysts polled by Thomson Reuters expected earnings per share of C$1.31 for the quarter. Analysts' estimates typically exclude one-time items.

On a taxable equivalent basis or TEB, second-quarter net interest income amounted to C$3.05 billion, and total revenue was up 10 percent year-on-year to C$5.81 billion. Higher net interest income from asset growth and improved net interest margin, stronger non-interest revenues, including higher net gains on investment securities and the positive impact of foreign currency translation contributed to the year-over-year increase in total revenue. Ten analysts estimated revenues of C$5.57 billion for the quarter.

The company said it recorded strong results for the quarter across its businesses, mainly in Canadian Banking and Global Wealth & Insurance. Return on equity was 16.3%, versus 16.5% in the previous year.

In a separate press release, Scotiabank announced that the Toronto Stock Exchange and the Office of the Superintendent of Financial Institutions have accepted its notice of intention to conduct a normal course issuer bid to enable it to purchase up to 12 million of its common shares. This represents nearly 1 percent of the 1,216,689,705 Common Shares issued and outstanding as of May 23, 2014.

Further, the board approved a dividend of 64 cents per share, payable on July 29, 2014, to shareholders of record as of July 2, 2014.