Scotiabank reported a net income of $7.89 billion for the fiscal year 2024, marking a 6% increase from the $7.45 billion posted in 2023. The bank’s diluted earnings per share (EPS) also rose to $5.87, up from $5.72 in the prior year.
For the fourth quarter ending October 31, 2024, the bank reported net income of $1.69 billion, a 25% increase from the same period in 2023. Diluted EPS for Q4 was $1.22, compared to $0.99 in the previous year. A news release said that solid revenue growth, driven by margin expansion, continued expense discipline, and the favourable impact of foreign exchange, was partly offset by higher provisions for credit losses.
Adjusted for specific items, Scotiabank’s net income for the full year was $8.63 billion, up from $8.36 billion in 2023. Adjusted diluted EPS was $6.47, slightly down from $6.48 last year. Adjusted return on equity (ROE) was 11.3%, compared to 11.6% in 2023. For Q4, adjusted net income was $2.12 billion, up 29% from $1.64 billion in Q4 2023, and adjusted EPS was $1.57, compared to $1.23 in the previous year.
“2024 was a foundational year for Scotiabank as we launched and made early progress against our new strategy,” said Scott Thomson, Scotiabank’s president and CEO. “The bank delivered solid revenue growth and positive full-year operating leverage while redeploying capital to our priority markets across the North American corridor.”
The bank’s performance across its business lines was varied. Canadian Banking reported adjusted earnings of $4.28 billion, up 7% from the previous year, driven by double-digit growth in net interest income. International Banking, which operates in various global markets, saw an 11% rise in adjusted earnings to $2.86 billion, with revenue growth and positive operating leverage despite higher provisions for credit losses.
Global Wealth Management delivered an adjusted earnings increase of 10%, reaching $1.61 billion, thanks to higher fee revenue and growth in assets under management, which totalled $373 billion, up 18% from last year.
On the other hand, Global Banking and Markets saw a decrease in adjusted earnings to $1.69 billion, driven by lower net interest income and higher expenses despite strong fee revenue.
Scotiabank’s Common Equity Tier 1 (CET1) capital ratio stood at 13.1%, up from 13.0% in 2023.
“While I am encouraged by our strategic progress to date, there is significant work ahead as we focus on client primacy initiatives to drive enhanced profitability across our businesses,” said Thomson. “I am confident that we are on track to achieve the targets we laid out at our Investor Day for 2025.”
As of October 31, 2024, Scotiabank’s total assets were $1.41 trillion, while loans totalled $760.83 billion. The bank also reported a market capitalization of $89.21 billion.
Do you have something to say about this story? Share your thoughts in the comments below.
