Regional business units falling under the Pacific Alliance are outpacing the Caribbean, said Brian Porter, president and chief executive officer (CEO) of Scotiabank Canada, in an earnings call and third quarter report yesterday (August 24, 2021).

However, Porter expressed optimism regarding future growth. Commenting on the nine months ended July 31, 2021, Porter said, “I believe the momentum [recovery] is coming on, both in loan growth and in revenue growth, strong in the Pacific Alliance countries and it will come gradually in the Caribbean.

“The economic outlook continues to improve. Since last quarter, GDP (gross domestic product) for the Pacific Alliance countries is now expected to reach 7.5 per cent compared to six per cent last quarter and vaccinations also are accelerating across the region.”

The wider banking group for the third quarter reported net income of $2.542 billion versus the $1.304 million during Q3 2020. Adjusted net income climbed 96 per cent to US $2.560 billion, while diluted earnings per share of $2.01 had a 93 per cent annual gain.

Porter said Canadian banking posted double-digit top line revenue growth backed by strong mortgage and commercial lending activity, favourable credit quality trends and generated positive operating leverage.

Global wealth management as a unit delivered another strong quarter, driven by broad-based growth across our businesses and geographic footprint. Canadian wealth management earnings grew 20 per cent and delivered double-digit revenue growth with strong contributions from all channels across our advisory and asset management businesses.

Global banking & markets delivered it’s third-consecutive quarter of earnings in excess of US $500 million in the face of a more normalised market environment. International banking earnings continued to improve with earnings approaching pre-pandemic levels, the company said.

The president and CEO, however, noted that Pacific Alliance countries that are rebounding strongly compared to the Caribbean and Central America that are still lagging. He reported very high liquidity in the markets, particularly in Chile and Peru.

Generally, the banking group reported a significant increase in deposits, mentioning that a number of things have been in play, including noting government stimulus, changing consumer preferences and changing consumer behavior. Deposits climbed both in Canadian banking and international banking.