The Bank of Nova Scotia (NYSE:BNS) Q3 2023 Earnings Conference Call August 29, 2023 8:15 AM ET
Company Participants
John McCartney - Head of Investor Relations
Scott Thomson - President and Chief Executive Officer
Raj Viswanathan - Chief Financial Officer
Phil Thomas - Chief Risk Officer
Dan Rees - Canadian Banking
Glen Gowland - Global Wealth Management
Francisco Aristeguieta - International Banking
Jake Lawrence - Global Banking and Markets
Conference Call Participants
Ebrahim Poonawala - Bank of America
Gabriel Dechaine - National Bank Financial
Mario Mendonca - TD Securities
Doug Young - Desjardins Capital Markets
Paul Holden - CIBC
Mike Rizvanovic - KBW Research
Lemar Persaud - Cormark Securities
Joo Ho Kim - Credit Suisse
Sohrab Movahedi - BMO Capital Markets
John McCartney
Good morning, and welcome to Scotiabank's 2023 Third Quarter Results Presentation. My name is John McCartney, I'm Head of Investor Relations, here at Scotiabank. Presenting to you this morning are Scott Thomson, Scotiabank's President, CEO; 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; Francisco Aristeguieta 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 Scott.
Scott Thomson
Thank you, John, and good morning, everyone. We appreciate you joining us today. The bank reported Q3 adjusted earnings of $2.2 billion or $1.73 per share, up 2% sequentially. Pre-tax, pre-provision earnings of $3.5 billion were up 5% compared to the prior quarter. The bank's Q3 results reflect both the resilient performance of our retail and commercial businesses and modest improvement in our market-sensitive capital markets and wealth businesses.
Although the operating environment has stabilized following the Q2 market dislocation, deposit migration to term products and Central Bank rate increases continue to increase our funding costs. Importantly, we strengthened our capital, liquidity and deposit metrics as we prepare the bank for our next phase of profitable, sustainable growth.
We continue to build capital this quarter, resulting in a common equity Tier 1 capital ratio of 12.7%. Our liquidity coverage ratio was a strong 133% at quarter end, up from 122% in the prior year. Deposits once again outpaced loan growth in the period from a sustained focus on deposit growth initiatives across our businesses, improving our loan-to-deposit ratio. Year-over-year deposits increased by 9% or approximately $55 billion. On a sequential basis, deposits grew in our Canadian Banking and International Banking franchises.