The Global Wealth Management business line of Scotiabank has weathered the Covid-19 onslaught with a 6% rise in net income.
The unit’s net income attributable to equity holders in Q3 2020 was C$321m ($243.5m), versus C$302m in the prior year. The figure was C$302m in the previous year.
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Adjusted net income attributable to equity holders increased to C$332m from C$312m.
The rise is said to be driven by higher net sales, trading volumes along with market appreciation.
The Canadian lender launched the Global Wealth Management business line last November.
Total Revenue at the unit remained almost stable at C$1.13bn.
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By GlobalDataNet interest income rose 1% year-on-year to C$145m. Non-interest expenses dropped 3% to C$700m from C$721m.
The Global Banking and Markets unit also reported strong performance with net income attributable to equity holders surging 60% to C$600m to C374m.
The rise was said to be due to greater client activity and improved conditions in capital markets.
Total revenue at the unit increased to C$1.54bn from C$1.08bn while net interest income rose to C$375m from C$337m.
Group lags
Overall, the banking group registered a fall in profit as it upped its loan loss provisions.
The group’s profit was C$1.3bn in Q3 2020, down 34% from C$1.98bn in the prior year.
Adjusted net income at the group slumped 47% to C$1.31bn.
Loan loss provisions increased to C$2.18bn from C$713m.
The bank’s common equity tier 1 capital ratio and liquidity coverage ratio were 11.3% and 141%, respectively, at the end of July 2020.
Scotiabank president and CEO Brian Porter said: “Scotiabank continues to focus on its customers while remaining operationally resilient during the COVID-19 pandemic. The Bank has strong capital and liquidity ratios and has reserved conservatively for estimated future loan losses.
“While our retail banking businesses in Canada and international markets were adversely impacted by the pandemic, the Bank’s performance was aided by strong results in Global Banking and Markets and Wealth Management.”
