Scotiabank increased its quarterly dividend after recording a boost in Q4 profits as compared to last year.
The bank that offers one of the most affordable secured credit cards was among the first ones to report its Q4 results and announced it will raise the 90-cent quarterly dividend to $1 per share. Additionally, Scotiabank intends to buy back up to 24 million of its shares.
These decisions come in light of the resolution made by the Office of the Superintendent of Financial Institutions to cancel COVID-19 restrictions. As a result, federally regulated banks and insurance companies will continue to raise dividends, as well as resume share buybacks and increase executive compensation.
Per Scotiabank’s reports, its net income reached almost $2.6 billion for the quarter ending October 31, climbing from $1.9 billion gained last year in the same quarter. As for the revenue, it came to approximately $7.7 billion as compared to the $7.5 billion a year ago.
Scotiabank’s CEO, Brian Porter, issued a statement saying the bank wrapped up the year strongly, exceeding their financial goals for the fiscal year of 2021. Furthermore, Porter says their diverse business model remained sound through the COVID-19 pandemic, and Scotiabank is in a good position to reach its full earnings potential in the approaching year.
The profit increase followed the fall of Scotiabank’s provisions for credit losses to $168 million in Q4, as opposed to the $1.13 billion in last year’s fourth quarter. According to the bank, its banking operations in Canada accumulated $1.2 billion, while international operations raised $528 million.