Bank of Nova Scotia, Canada's third-biggest lender, reported a better-than-expected rise in fourth-quarter earnings, driven by a strong performance from its domestic and international banking businesses. Scotiabank said on Tuesday its earnings per share increased to C$1.58 from C$1.46 in the same period the previous year. Analysts had on average forecast earnings of C$1.51, according to Thomson Reuters I/B/E/S.
"We believe that steady domestic operations and improvement in international (business) will garner some attention today and should be rewarded, particularly as Scotia's shares have been under pressure recently because of its exposure to Latin America," said Barclays analyst John Aiken.
Scotiabank has the biggest international presence among Canada's major banks and has benefited this year from growth in Mexico, Peru, Chile and Columbia.
The company said annual earnings from its international business had exceeded C$2 billion ($1.5 billion) for the first time in 2016.
"Our strong results were driven by the key Pacific Alliance region which again recorded double digit deposit and asset growth complemented by our improved performance from the Caribbean and Central America," Chief Executive Brian Porter said.
Scotiabank reported fourth-quarter net income of C$2 billion, up 9 percent and full-year net income of C$7.4 billion, up from C$7.2 billion the year before.
Adjusting for a second-quarter restructuring charge of C$278 million, full-year net income increased by 6 percent to C$7.65 billion with earnings per share rising by 6 percent to C$6.00.
Net income from the bank's Canadian business grew by 14 percent to C$954 million in the fourth quarter, benefiting from an improved margin and the contribution from a credit card business Scotiabank purchased from JPMorgan Chase Bank.
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