Equity morning update

Canadian Market Summary

Written by Nitin Manohar
May 29, 2018

Reported Q2F18 EPS of $1.71 versus the consensus estimate of $1.67. Due to a reporting period alignment, the results included an extra month of earnings from both Canadian Insurance and Chile, which contributed ~$0.04 per share. International, Canadian personal and commercial (P&C), and Scotiabank GBM segment earnings were $675M, $828M, and $447M, respectively, versus the SGBM analyst’s estimates of $634M, $866M, and 439M. All-bank operating leverage was -0.8% due in part to the timing of technology spend in Canadian P&C, and the bank finished the quarter with a common equity tier 1 (CET1) capital ratio of 11.98%. The bank’s normal course issuer bid to repurchase up to 24 million common shares between June 4, 2018, and June 3, 2019, inclusive, was approved by regulators.

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