Scotiabank First Quarter Press Release 2023
Scotiabank
First Quarter 2023 Earnings Release
Scotiabank reports first quarter results
All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended January 31,
2023 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted. Our complete First Quarter 2023
Report to Shareholders, including our unaudited interim financial statements for the period ended January 31, 2023, can also be found on the SEDAR website at
www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov. Supplementary Financial Information is also available, together with the First
Quarter 2023 Report to Shareholders on the Investor Relations page of www.scotiabank.com
First Quarter 2023 Highlights on a Reported Basis
(versus Q1, 2022)
First Quarter 2023 Highlights on an Adjusted Basis (1)
(versus Q1, 2022)
•
•
Net income of $1,772 million, compared to $2,740 million
Diluted earnings per share of $1.36, compared to $2.14
Return on equity (2) of 9.9%, compared to 15.8%
•
•
Net income of $2,366 million, compared to $2,758 million
Diluted earnings per share of $1.85, compared to $2.15
Return on equity of 13.4%, compared to 15.9%
TORONTO, February 28, 2023 - Scotiabank reported first quarter net income of $1,772 million compared to $2,740 million
in the same period last year. Diluted earnings per share (EPS) were $1.36, compared to $2.14 in the same period a year ago.
Adjusted net income (1) for the first quarter was $2,366 million and EPS was $1.85, down from $2.15 last year. Adjusted return
on equity was 13.4% compared to 15.9% a year ago.
"I am honoured and privileged to have this opportunity to work with our 90,000 Scotiabankers across our footprint as we look
to deliver for every future together for our customers, employees, shareholders and communities," said Scott Thomson,
President and CEO of Scotiabank. "The Bank's performance in the first quarter of 2023 reflects both the merits of a diversified
platform, and also the continued relative pressure on our profitability given our funding profile. As we look ahead, our efforts
on culture, capital allocation discipline and operational excellence will drive a renewed strategic agenda focused on delivering
value for our stakeholders."
Canadian Banking delivered adjusted earnings (1) of $1,088 million this quarter benefitting from margin expansion, and strong
asset and deposit growth, specifically in business lending and personal deposits. Results were negatively impacted by higher
provision for credit losses and higher expenses.
International Banking generated adjusted earnings (1) of $661 million, up 20% driven by higher net interest income as loans
grew 19% and strong non-interest revenues. This combined with continued expense management and lower income taxes
more than offset higher provision for credit losses.
Global Wealth Management adjusted earnings (1) were $392 million, down 6%. Challenging market conditions drove declines in
assets under management, impacting fee income, partly offset by strong growth in the advisory business. Operating leverage
remained positive as prudent expense management offset the lower revenue trends.
Global Banking and Markets delivered another strong quarter, with earnings of $519 million. Net interest income grew a strong
22% benefitting from a 33% growth in loans. Strong performance from the Capital Markets business was offset by lower
advisory revenues.
The Bank remained well capitalized with a Common Equity Tier 1 capital ratio (3) unchanged at 11.5%, despite the impact of the
Canada Recovery Dividend. With a continued focus on prudent capital management the Bank's CET1 ratio is expected to
continue to strengthen over the year.
(1) Refer to Non-GAAP Measures section on page 6.
(2)
Refer to page 50 of the Management's Discussion & Analysis in the Bank's First Quarter 2023 Report to Shareholders, available on www.sedar.com, for an explanation of the
composition of the measure. Such explanation is incorporated by reference hereto.
(3) This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).
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