The Canadian Press

Bank of Nova Scotia (TSX:BNS) wrapped up the Canadian banking industry’s first-quarter earnings season with a $988-million profit that was up 17 per cent from a year earlier and ahead of analyst estimates.

Scotiabank says its profit for the three-month period was the equivalent of 91 cents per diluted share or 93 cents on a cash basis, with $3.9 billion in revenue for the quarter ended Jan. 31.

Analysts had been looking for 88 cents per share in earnings and $3.8 billion in revenue, according to estimates compiled by Thomson Reuters, but there was only tepid reaction to the results issued Tuesday.

“Each of Scotia’s three business segments generated sizeable sequential earnings growth, giving additional credence to the bank’s business strategy,” wrote John Aiken of Barclays Capital in a note.

“We were a little surprised that BNS’s earnings did not exceed consensus by a higher margin, given the fact that provisions came in $100 million below the Street’s expectations.”

Scotiabank’s provisions for credit losses was increased to $371 million, up from $281 million a year ago but down from $420 million in the prior quarter ended Oct. 31.

Scotiabank’s Canadian banking operations performed especially well, with record net income of $560 million – up 28% from a year earlier – continuing a trend of robust domestic operations at all of Scotiabank’s peers.

Net income from Scotiabank’s international banking operations was $294 million, and its global corporate and investment banking, and capital markets division, reported a 27% increase in profits to $381 million.

“We are still in the early days of the recovery, and we continue to carefully manage our businesses in order to achieve solid earnings and maintain a strong return on equity,” said chief executive Rick Waugh in a release.

“Our capital position remains strong by both Canadian and international standards, allowing the bank to continue to grow our businesses, pursue strategic acquisitions, and deliver shareholder dividends.”

Most of Canada’s big banks came out with profits ahead of analyst expectations, with Royal Bank of Canada (TSX:RY) being the sole exception, although its profit grew by 35% from a year before to $1.5 billion or $1 per share.