Business

Scotiabank reports higher Q3 earnings, sets aside less money for bad loans

Scotiabank is the latest of the big banks to report higher profits in the third quarter, thanks to strong returns from its domestic and international banking operations.

Raises its quarterly dividend from 72 cents to 74 cents

Brian Porter, president and CEO of Scotiabank, waits to address the company's annual meeting in Calgary on April 12, 2016. (Jeff McIntosh/Canadian Press)

Scotiabank is the latest of the big banks to report higher profits in the third quarter, thanks to strong returns from all of its domestic and international banking operations.

The bank made $1.96 billion in the three months that ended July 31, up six per cent from the $1.85 billion it made in the same period a year ago.

That works out to earnings of $1.54 per share, up from $1.45 last year.

Revenue in the quarter rose to $6.64 billion, up from $6.12 billion a year ago.

Scotiabank also lowered the money it set aside for bad loans by $181 million from the second quarter to $571 million.

"The majority of the decline related to lower losses in the energy sector, which is consistent with our previously stated expectations that energy losses had peaked during the last quarter," CEO Brian Porter said in an earnings release.

Scotiabank also said it would raise its quarterly dividend by two cents a share to 74 cents.

Royal Bank also hiked its dividend when it reported its financial results last week.

All five of the big banks reported higher third-quarter profits compared to the same quarter last year.