The Bank of Nova Scotia posted its second quarter numbers Tuesday. Although the figures suggest a decrease in Q2 profits from a year ago, the results still show better-than-expected profits.
The Toronto Stock Exchange was trading higher in the Tuesday morning session due to rising commodity prices and strong Scotiabank earnings. The financial institution released its second quarter results Tuesday and exceeded estimates from industry analysts.
According to a news release from the bank, Scotiabank’s Q2 net profit was $1.46 billion compared with $1.62 billion a year ago. Revenue in the quarter rose two percent to $4.7 billion compared to $4.63 billion a year prior.
Strong performances were fuelled by the Canadian financial sector as well as its international operations and wealth management gains. The bank maintains operations throughout Latin America and Asia and has confirmed that it will continue to expand despite stringent Basel III capital standards that begin to take effect next year.
“We are very pleased with the strong performance of all of our business lines," said Rick Waugh, Scotiabank President and CEO. "Our continued focus on sustainable and diversified revenues in high-growth markets, together with ongoing cost-containment initiatives are contributing to solid growth in earnings.”
Scotia Plaza tower located at King and Bay Streets in Toronto's financial district.
Canadian banking profits rose 23 percent to $461 million and international banking profit also rose 14 percent to $448 million. The boost in revenues and earnings mostly came from the bank’s newest acquisition, Colombia’s Banco Colpatria.
“Based on our strong performance in the first half of the year, we remain confident of achieving our goals and targets for 2012,” added Waugh.
Last week, Scotiabank announced that it had signed a deal to sell its 68-storey red skyscraper in the downtown core of Toronto to Dundee REIT and H&R REIT for an astounding $1.27 billion. It is located near the corner of King and Bay Streets and has been the headquarters for the financial institution since it opened its doors in 1988.