Bank of Nova Scotia or Scotiabank (BNS: Quote,BNS.TO: Quote) reported Tuesday a higher third-quarter profit, benefited by a gain on sale of Scotia Plaza in Toronto. Adjusted earnings per share and topline beat Street analysts' expectations. The company increased its quarterly dividend and said it anticipates achieving its financial goals for 2012.
Rick Waugh, president and CEO of the company said, "We had record net income this quarter, with our business lines continuing to show good, diversified and sustainable growth and high profitability, coupled with the gain from the sale of Scotia Plaza in Toronto."
In the third quarter, net income attributable to common shareholders increased to C$1.95 billion from C$1.21 billion in the same quarter last year. Earnings per share for the quarter were C$1.69, compared to C$1.10 in the same period a year ago, an increase of 54 percent.
The latest-quarter results included an after-tax gain on the sale of Scotia Plaza in Toronto, Canada of C$614 million or 53 cents per share, and an increase in the collective allowance for credit losses on performing loans of C$100 million, representing 6 cents per share after tax.
Adjusted earnings per share for the quarter were C$1.72, while in the prior year, the company posted adjusted earnings of C$1.12 per share. On average, 15 analysts polled by Thomson Reuters expected the company to earn C$1.19 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenue, on a taxable equivalent basis, was C$5.59 billion, up 28 percent from the same period last year, which also exceeded analysts' estimate of C$4.93 billion. Net interest income grew to C$2.57 billion from C$2.3 billion a year earlier. Non-interest revenues also surged to C$3.02 billion from C$2.07 billion in the preceding year.
Provision for credit losses was C$402 million, compared to C$250 million in the prior year.
Core banking margin slightly improved to 2.33 percent from 2.31 percent in the previous year. Tier 1 capital ratio was 12.6 percent, in comparison with 12.2 percent at the end of April 2012.
Scotiabank announced a dividend of C$0.57 per share, an increase of 2 cents per share. The dividend will be payable on October 29, 2012 to shareholders on record at the close of business on October 2, 2012.
BNS is currently trading at $53.59, up 0.47 percent, on a volume of 115 thousand shares on the NYSE.
On the Toronto Stock Exchange, BNS.TO trades at C$53.21, up 0.51 percent.
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by RTT Staff Writer
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