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TORONTO - Scotiabank (TSX:BNS) reported fourth quarter earnings that fell short of analyst expectations on Tuesday, as the Canadian lender continues to execute on its new strategic initiatives.
The bank posted adjusted earnings per share of C$1.57 for the quarter ended October 31, missing the analyst consensus estimate of C$1.60. Revenue figures were not provided in the earnings release.
For the full fiscal year 2024, Scotiabank reported adjusted net income of C$8.63 billion, up from C$8.36 billion in the previous year. Adjusted diluted EPS was C$6.47, compared to C$6.48 in fiscal 2023.
The fourth quarter results included C$430 million in after-tax adjusting items, including impairment charges related to investments in China and software assets, as well as severance provisions.
"2024 was a foundational year for Scotiabank as we launched and made early progress against our new strategy," said Scott Thomson, President and CEO of Scotiabank. "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 Canadian Banking division saw adjusted earnings rise 7% YoY to C$4.28 billion in fiscal 2024, driven by strong net interest income growth. International Banking earnings increased 11% to C$2.86 billion, benefiting from margin expansion and expense discipline.
Scotiabank maintained a Common Equity Tier 1 capital ratio of 13.1% as of October 31, up slightly from 13.0% a year earlier.
The company's shares edged 1.4% lower following the earnings release, suggesting a muted market reaction to the mixed results as Scotiabank continues to execute on its strategic initiatives.
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