Scotiabank announces full-year earnings of $3.14 billion compared to $4.05 billion last year.
Significant profit was witnessed in Canadian Banking, International Banking and Scotia Capital, partially offset by writedowns related to volatile global financial markets. Earnings per share (EPS) (diluted) were $3.05 compared to $4.01 in 2007. Return on Equity (ROE) was 17%.
Net income for the quarter ended October 31, 2008, was $315 million versus $954 million for the same period last year due to charges of $642 million after tax relating to the Lehman Brothers bankruptcy and valuation adjustments. EPS (diluted) was $0.28, versus $0.95 for the same period last year, with writedowns this quarter of $0.65 per share. Annual dividends per share increased 10% to $1.92.
The Bank’s full-year results reflect a strong increase in average asset levels of $52 billion, or 13%, with contributions from all major business lines, says Rick Waugh, president and CEO. Year over year, Canadian Banking’s average assets grew by $21 billion or 14%, International Banking saw growth of $13 billion or 20% and Scotia Capital’s average assets grew by $12 billion or 8%.
Despite challenging conditions, the overall strength of our capital and core earnings continues to allow us to generate sustainable dividends for shareholders, continues Rick Waugh. This year, we announced two quarterly dividend increases, with dividends for the year totaling $1.92, an increase of 10% over 2007. Our dividend remains well supported by both our earnings and high capital levels, which remain strong by global standards.
L.D.