Scotiabank kicks off big bank earnings with dividend hike
Global News
Scotiabank said it will now pay a quarterly dividend of $1 per share, up from 90 cents.
Scotiabank raised its quarterly dividend Tuesday as it reported a fourth-quarter profit that rose compared with a year ago and beat expectations.
The first big Canadian bank to report its fourth-quarter results said it will now pay a quarterly dividend of $1 per share, up from 90 cents. Scotiabank also announced plans to buy back up to 24 million of its shares.
The increased payment to shareholders and share buyback plan follow a decision by the Office of the Superintendent of Financial Institutions earlier this month to lift COVID-19-related restrictions and allow federally regulated banks and insurers to increase dividends, resume share buybacks and raise executive compensation.
Scotiabank said its net income totalled nearly $2.6 billion or $1.97 per diluted share for the quarter ended Oct. 31, up from $1.9 billion or $1.42 per diluted share in the same quarter last year.
Revenue totalled nearly $7.7 billion, up from $7.5 billion a year ago.
On an adjusted basis, Scotiabank said it earned $2.10 per diluted share, up from an adjusted profit of $1.45 per diluted share in its fourth quarter last year.
Analysts on average had expected Scotiabank to earn an adjusted profit of $1.90 per share, according to data compiled by financial markets data firm Refinitiv.
“We ended the year with strong fourth-quarter earnings and exceeded our medium-term financial targets in fiscal 2021,” Scotiabank chief executive Brian Porter said in a statement.
