Bank of Nova Scotia today reported third quarter net income of $1,032 million compared with $936 million the same period last year.

Quarter over quarter, net income was down slightly from $1,039 million, due largely to the unfavourable impact of foreign currency translation and lower interest and loan loss recoveries.

Earnings per share (diluted) increased 10% to $1.02 from 93¢ in the same period a year ago, and return on equity remained strong at 22.7%.

Excluding a recovery of value added tax in international banking recorded in the third quarter last year, earnings per share (diluted) were up 16%.

“Our third quarter saw continued contributions across all three of our platforms for growth,” said Rick Waugh, Scotiabank president and CEO, in a news release.

The bank said domestic banking, including wealth management, had a very strong quarter characterized by significant asset and revenue growth.

At Scotia Capital, significantly improved trading results, and strong loan demand from our U.S. and Canadian clients led to a strong third quarter performance,.

“International Banking achieved positive underlying growth excluding the value added tax recovery in the same quarter a year ago. Solid results were reported by operations in Peru, the Caribbean and Central America, and Chile,” Waugh said.


Regarding the recent turmoil in financial markets, Waugh commented “The bank is well positioned to manage through any uncertainty and pursue our current and long-term growth strategies. This confidence is based on our high levels of profitability and capital, access to multiple sources of liquidity, our proven competence in risk management and our significant diversification of operations. Accordingly, the bank should be able to achieve the upper range of its key performance objectives for the year and is well positioned for continued growth in the future.”