Scotiabank Q4 profit up 11% to $1.24 billion

President and chief executive Rick Waugh says the diversification of Scotiabank (TSX:BNS) helped it weather an “increasingly volatile” economic environment.

Scotiabank’s fourth-quarter coincided with prolonged and deepening concern about the government debt crisis in Europe that has cast doubt on the survival of the euro currency and seriously undermined confidence in the global economy.

“The Scotiabank business model which has consistently served us so well, will keep us strong through the current challenges,” Waugh said.

“While we expect growth in the entire industry to be tempered by continued uncertainty in the global economic environment, our international footprint is in areas of growth with very limited exposures to areas of global concern.”

The Canadian division of this country’s most international bank generated about one-third of the overall profit, or $460 million, up four per cent from $441 million a year ago.

“Results were driven by residential mortgage and commercial lending growth and higher deposit volumes in each of retail, commercial and small business banking,” Waugh said in a statement.

Scotiabank’s international division contributed $373 million, wealth management added $250 million and its Scotia Capital wholesale banking division provided $230 million of profit, down from $273 million a year earlier.

Waugh said the lower trading volume at Scotia Capital reflected volatile market conditions and more moderate appetite for risk.

The International division, which operates in many countries in Latin America, the Caribbean and Asia, was up 10% from $338 million in the fourth quarter of 2010 and Wealth Management was up 39%.

The bank’s fourth-quarter net income was equivalent to $1.07 per share, which was up from $1 a share or $1.12 billion in the fourth quarter of fiscal 2010.

Scotiabank’s revenue increased to $4.35 billion in the three months ended Oct. 31, rising from $3.94 billion a year earlier.