Strong global results boost Scotiabank’s Q2

The Bank of Nova Scotia posted double-digit profit gains in the second quarter in large part due to record earnings from its international operations, momentum that the lender expects to continue for the rest of the year.

Scotiabank’s international segment reported net income of $595 million, up 19 per cent from the same quarter last year, nearly double the rate of adjusted net income growth for the bank as a whole.

Chief executive Brian Porter said Tuesday the Pacific Alliance countries of Mexico, Peru, Chile and Colombia — a trade bloc where Scotiabank has invested heavily, aiming to capitalize on the relatively low banking penetration rates in these emerging markets — continue to have “great short and long-term potential” for the bank.

Even in Mexico, amid fears over the Trump administration’s push to renegotiate the North American Free Trade Agreement, Scotiabank saw 22.3 per cent growth in net income during the past quarter, compared to a year ago.

The bank reported net income of $2.061 billion, up 30 per cent from a year earlier. After adjusting for a restructuring charge last year, the net income gain was 10.7 per cent. Scotiabank also reported adjusted diluted earnings per share of $1.62, up 15 per cent from a year earlier and ahead of the $1.56 expected by analysts.