Retail revenues grew by $246 million or 2.6 per cent due to strong loan growth in the Scotia plan loan (up 10 per cent) and mortgage (up 14 per cent). These portfolios contributed positively to the year-over- year increase noted in interest income, which was partially offset by the reduction in fee and commission income owing to lower transaction volumes because of COVID-19.

Of note, expected credit losses included in expenses were up $1.5 billion due to the revised assumptions incorporated in the impairment model as a result of the pandemic, which predominantly affected the retail segment.

Commercial (-7.7 per cent) – Despite strong loan growth in Scotia’s commercial portfolio (up 28 per cent), commercial revenues declined by $365 million or 7.7 per cent and was attributable to the decrease in fee and commission income owing to lower transaction volumes stemming from COVID-19.

Investment Management (-12.5 per cent) – Results from this area was impacted by lower yields earned on investments and deposits coupled with a decline in the net asset value of the managed funds stemming from COVID-19, which was partially offset by the year-over-year increase in management fees earned.

Insurance Services (+3.5 per cent) – Growth in premium income for product lines offered by Scotia Insurance increased actuarial reserve releases from changes in valuation assumptions, and increased trading gains on financial assets.

Treasury (+12.1 per cent) – Continued foreign exchange trading coordination efforts among the various channels, despite lower yields earned on the investment portfolio.

Other income, defined as all income other than interest income, declined by $650 million or 6.6 per cent. Net fee and commission income amounted to $3.4 billion and showed a decline of $665 million or 16.24 per cent.

Insurance revenues increased marginally by $96.8 million or 5.4 per cent to $1.9 billion due mainly to higher actuarial reserve releases coupled with the year-over-year growth in premium income.

Net gains on foreign currency activities and financial assets amounted to $3.8 billion, showing an increase of $103 million above the prior year owing to increased trading activities despite lower revaluation gains.