The Bank of Nova Scotia (NYSE:BNS) Q3 2017 Earnings Conference Call - Preliminary Transcript
Aug 28, 2017 • 06:00 pm ET
Good morning and welcome to Scotia Bank Third Quarter 2017 Results Presentation. My name is Adam Borgatti, Vice President of Investor Relations. Presenting to you this morning is Brian Porter, Scotiabank's President and Chief Executive Officer; Sean McGuckin, our Chief Financial Officer; and Daniel Moore, our Chief Risk Officer.
Following our comments, we'll be glad to take your questions.
Also in the room with us to take questions is Scotiabank's business line group heads. James O'Sullivan from Canadian Banking; Nacho Deschamps from International Banking; and Dieter Jentsch from Global Banking and Markets.
Before we start and on behalf of those speaking today, I would refer you to Slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements.
With that, I will now turn the call over to Brian Porter.
Thank you, Adam, and good morning, everyone. For Q3, we earned $2.1 billion which is up 7% compared to last year. Diluted earnings per share, up 8% from last year at $1.66 and our return on equity was 14.8%. We are increasing our dividend to shareholders by $0.03 to a total of $0.79 per share. The increase reflects our confidence in the strength and stability of our business.
This quarter's results were generated by strong contributions from each of our business lines, especially our personal and commercial businesses. In particular, Canadian Banking had a record quarter and for the first time generated net income in excess of $1 billion, an increase of 12% over last year.
International Banking delivered another quarter of record results and earned more than $600 million for the first time. This continues a strong track record of stable and growing earnings which demonstrates the strength and diversification of our businesses and geographies. Overall, we are seeing good asset and deposit growth across both our Canadian and International P&C businesses as well as favorable credit trends.
Global Banking and Markets also performed well in the third quarter and was supported by improved contributions from the equities in our lending businesses. At the enterprise level, our structural cost initiatives are progressing well. After three quarters, we have already exceeded the 350 million savings target we had set for 2017 and we are making good progress towards a productivity ratio of 50% or better by 2021.
We are also making good progress against our digital transformation agenda. This includes investments in people, processes and technology to reduce friction points for our customers and digitizing the bank to help us drive productivity and efficiency.
Let me share a couple of important developments with you. First at our digital factory here in Toronto, we developed a new on-boarding engine that strengthens controls, provides a seamless experience for our customers and accelerates our time to market for new digital products.
This engine allows instant KYC for new Credit Card, Day-to-Day and small business customers without requiring a branch visit. We've been in market for six weeks and have processed more than 15,000 applications and we expect to improve the customer experience for