Commercial lending, margins drive Scotiabank's international banking profits in Q2

- Tuesday, May 31, 2011

Commercial lending, margins drive Scotiabank's international banking profits in Q2

Scotiabank's (NYSE: BNS) international banking units posted earnings of Cdn$402mn (US$415mn) in the second quarter of fiscal 2011, mainly thanks to good growth in commercial lending and wider margins, the bank's president and CEO, Rick Waugh, told a conference call.

The international operations' profits for the quarter, ending in April, were up 58.3% compared to the same period a year ago.

Through its international banking business, Scotiabank maintains a strong presence throughout Mexico, Central America, the Caribbean and much of South America, along with several operations in Asia.

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"In addition, recent acquisitions continue to provide a meaningful contribution to overall results," Waugh said.

Scotiabank's international segment saw net interest income rise 7.24% to Cdn$963mn and provisions for loan losses drop 40.3% to Cdn$106mn in the second quarter compared to the year-ago period, according to the bank's latest earnings release.

Globally, Scotiabank earned Cdn$1.54bn in the quarter, up 40% compared to the same period in 2010, on the back of strong loan growth and lower provisions.

To read Scotiabank's full earnings release, in English, go to this link