Scotiabank is reporting record earnings for 2006, with net income available to common shareholders of $3,549 million. Earnings per share (diluted) were $3.55, compared with $3.15 in 2005. Return on equity reached its highest level in recent years at 22.1%, compared to 20.9% last year, the bank reported.

Scotiabank also delivered solid results for the fourth quarter ended October 31, 2006, with net income of $890 million, up 11% from the same period last year. EPS (diluted) rose to $0.89, from $0.80 a year ago. ROE was 21.1%.

“Our strategy of diversifying across businesses and geographies has once again allowed us to achieve record results and exceed all of our key financial targets for 2006,” the bank’s president and CEO, Rick Waugh, said in a release. “For the first time, all three business lines – Domestic Banking, Scotia Capital and International Banking – each contributed more than $1 billion in annual net income. Stable credit quality also contributed to our strong results this year.

The bank reported a 21% increase in assets, to $379 billion and growth in overall loan portfolio of 19% over 2005, led by significant growth in domestic residential mortgages. It also reported a “solid contribution” from the bank’s expanded broker channel, mainly through the acquisition of the mortgage business of Maple Financial Group.

Scotia Capital and International Banking also experienced solid growth in asset levels, with increases in corporate lending, continued strong mortgage growth in Mexico and the impact of acquisitions in Peru and Costa Rica. In addition, Scotiabank added approximately 1.9 million customers during the past year, mainly through acquisitions.

“International Banking continues to set us apart from our peers,” wauggh said. “Revenue rose by 17% compared to 2005, due to contributions from recent acquisitions in Peru, El Salvador and Costa Rica, the purchase of a consumer lending portfolio in the Dominican Republic, and strong growth in transaction volumes and asset levels in Mexico and the Caribbean.”

The bank says it exceeded its key objectives, including growth in EPS of 5% to 10%; year-over-year EPS growth was 12.7%.

http://www.newswire.ca/en/releases/archive/December2006/08/c4580.html?view=print