The Bank of Nova Scotia reported net income of $2.7 billion in the first quarter, up 14.3% from $2.4 billion the same period last year on loan and fee income growth.
“2022 has started well, reflecting the full earnings power of the bank, with very strong operating results in our four business lines,” said Brian Porter, president and CEO of Scotiabank, in a release.
The bank reported earnings per share of $2.14 for the quarter, up from $1.86 the previous year.
Adjusted net income for the first quarter was $2.8 billion compared to $2.4 billion last year and adjusted EPS was $2.15, up from $1.88 last year. Adjusted return on equity was 15.9% compared to 14.4% a year ago.
In its global wealth management unit, Scotiabank reported first quarter net income of $412 million, down $6 million or 1% year over year but up $27 million or 7% from the previous quarter.
The bank said strong growth in its asset management, private banking and advisory businesses was offset by higher volume-related expenses and lower online brokerage revenues due to a drop in customer activity.
Assets under management were $345 billion and assets under administration were $601 billion at the end of the first quarter, both up 11% from the prior year but down marginally from the previous quarter. Strong net sales in the quarter were offset by market depreciation.
In answer to a question from an analyst during the bank’s conference call, group head of global wealth management Glen Gowland indicated that the bank’s asset management business “would play a very big role” in the bank’s broader efforts to grow its wealth business across its international markets.
On possible U.S. acquisitions in wealth management, Gowland said: “Nothing to announce at this point, but certainly as we look to develop U.S. capabilities, it’s something that we continue to look [at].”
The bank’s Canadian banking unit generated adjusted earnings of $1.2 billion, up 32% compared to the prior year, attributable to strong loan growth and increased customer activity, favourable credit quality trends, and positive operating leverage.
International banking adjusted earnings were $552 million, an increase of 38% compared to the prior year, driven by mortgages and commercial loan growth, expense management supported by customer adoption of digital channels, and lower provision for credit losses.
Global banking and markets reported earnings of $561 million, up 3% year over year, attributable to revenue growth across the bank’s capital markets and corporate and investment banking businesses.