BUSINESS

Scotiabank Profit Rises Above Analyst Expectations

05/31/2011 08:28 EDT | Updated 07/31/2011 05:12 EDT

(THE CANADIAN PRESS) -- TORONTO -- Scotiabank (TSX:BNS) pulled up its profits in the second quarter, coming in ahead of analyst expectations, with the help of gains booked from recent acquisitions.

Canada's most international bank says it made $1.54 billion or $1.36 per share, in the three-month period, compared with $1.1 billion a year earlier, or $1.02 per share.

The results were equal to $1.12 cash earnings per share, above the estimates of $1.08 per share according to a survey of analysts by Thomson Reuters.

Scotiabank, the last of the big Canadian banks to report its quarterly earnings, said it booked gains of $286 million from two recent acquisitions which, under new accounting standards, required them to be recorded at a "fair value."

Provisions for credit losses slipped to $262 million, a drop from $338 million a year ago.

"This was a solid quarter with good performance across our four business lines, with record revenues even without the one-time gains," said president and CEO Rick Waugh in a release.

"Our proven, straightforward business model is well-diversified and, together with our strong risk management practices and culture of expense control, continues to deliver sustainable growth in Canada and internationally."

Revenue increased to $4.52 billion from $3.87 billion.

Scotiabank has more than 73,500 employees serving some 18.6 million customers in more than 50 countries.