The Bank of Nova Scotia (BNS) Q2 2022 Earnings Call Transcript

For the period ending April 30, 2022

May 25, 2022 7:15 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

John McCartney

Good morning and welcome to Scotiabank's 2022 Second Quarter Results Presentation. My name is John McCartney and I'm Head of Investor Relations here at Scotiabank. Presenting to you this morning are Brian Porter, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer.

Following our comments, we'll be glad to take your questions. Also present to take questions are the following Scotiabank executives; Dan Rees from Canadian Banking; Glen Gowland from Global Wealth Management; Nacho Deschamps from International Banking; and Jake Lawrence from Global Banking and Markets.

Before we start and on behalf of those speaking today, I'll refer you to slide two of our presentation which contains Scotiabank's caution regarding forward-looking statements.

With that, I will now turn the call over to Brian.

Brian Porter

Thank you, John, and good morning, everyone. This morning we announced our second quarter earnings of $2.8 billion or $2.18 per share, representing a very strong 15% year-over-year increase in earnings per share. The results reflect net income growth of 12% and a return on equity of 16.4%. Continued loan growth of 13% and improving net interest margin, strong customer balance sheets, combined with prudent expense management positions the bank very well to grow its earnings.

The macroeconomic backdrop for our key geographies remains positive supported by the rise in commodity prices and the underlying strength of businesses and households. The bank is proving resilient delivering on all our commitments in terms of earnings growth, return on equity, and expense control, while maintaining a strong balance sheet.

Continued momentum in Canadian Banking and the strong recovery in our International Banking segment contributed to solid year-over-year revenue growth across our operating business lines. These segments delivered positive operating leverage despite the expense pressures of the current operating environment.

Global Wealth Management delivered another impressive quarter of growth and positive operating leverage through a period of volatility and broad market declines and Global Banking and Markets showed resilience in a period of heightened volatility and muted customer activity in our trading and origination businesses.

Credit trends remain favorable. A result of our high-quality portfolio supported by strong consumer balance sheets and prudent customer spending behaviors. Phil Thomas will discuss these factors in more detail later in the call.