The Canadian Press

The Bank of Nova Scotia (TSX:BNS) saw its fourth quarter net income nearly triple from the same time last year, when its profit was eroded by several accounting provisions.

Scotiabank, the last of Canada’s six big banks to report its fourth-quarter results, said its net income was $902 million or 83¢ per share for the quarter ended Oct. 31.

That was up from a year-ago profit of $315 million or 28¢ per share.

Scotiabank said the year-to-year increase in profit largely reflected a recovery from $642 million in after-tax charges taken in last year’s fourth quarter, as well as the impact of new acquisitions.

This was however partly offset by the negative impact of foreign currency translation and an increase in the provision for credit losses

The provision for credit losses was $420 million in the fourth quarter, a figure that was up $213 million from last year.

Scotiabank said its year-over-year provisions rose across all its business lines due to global economic conditions. It set aside $424 million in specific provisions and saw a $4 million reduction in the automotive sectoral allowance which was reclassified to specific provisions.

The bank pointed out that the total provision was still down $134 million from the last quarter, due mainly to an increase of $100 million in the general allowance in the prior quarter and lower provisions in Scotia Capital.

Revenues totalled $3.7 billion, up from $2.5 billion last year. Revenues on a taxable equivalent basis came to $3.8 million for the quarter, up by $1.2 million from last year.

The revenue figures were in line with analysts estimations for revenue, according to Thomson Reuters. The consensus estimate for earnings per share was 87¢.

For fiscal 2009, Scotiabank reported net income of $3.5 billion, up 13% from last year, with earnings per share of $3.31 compared to $3.05 in 2008.

“Despite the challenges of the past year, results for the fourth quarter rounded out a very strong year for Scotiabank and I am pleased to report that we have met all of the targets established at the end of last year,” said Rick Waugh, Scotiabank’s president and chief executive officer.

“Our strategy of diversification by business and geography, and our focus on aggressively managing risk has again enabled our bank to earn through the challenges of volatile markets and difficult economic conditions,” he said.

Scotiabank’s Canadian banking sector saw an 8% increase in net income from year-ago levels as its benefited from increases in residential mortgages and revolving credit.

Meanwhile, Scotia Capital reported net income of $353 million, up $44 million from the fourth quarter in 2008. The bank said gains were made in credit fees, investment banking revenues and strong trading activities.

These were however offset by lower loan volumes and foreign exchange revenues.

Scotiabank’s international banking division had profit of $283-million, up from $227 million a year ago largely due to contributions from acquisitions and growth in retail loans. The bank also said 2008’s results were adversely affected by fair value changes on certain investments and other valuation adjustments.

Scotiabank said it expects to see continued growth in 2010 with “solid contributions” from each of its business lines as the global economy transitions from recession to recovery.

The bank has set targets which include generating growth in earnings per share of seven to 12% per year and maintaining a productivity ratio of less than 58%.

“Looking ahead, the environment continues to be challenging, but we have the right strategy and the right team. As we move into a new year, I am optimistic that our well-diversified businesses, each with excellent growth opportunities, and our commitment to serving our shareholders, employees, customers and communities, will enable us to succeed,” Waugh said.

Scotiabank’s shares closed at $48.61 Monday on the Toronto Stock Exchange.