UPDATE 3-Scotiabank profit rises on ING deal

Fri Dec 6, 2013 4:31pm EST
 
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* Fourth-quarter adjusted profit C$1.31 vs est C$1.32

* Profit at Canadian retail banking business jumps 23 pct

* Shares rise 1 pct

By Cameron French

TORONTO, Dec 6 (Reuters) - Bank of Nova Scotia reported a 12 percent rise in quarterly profit due to its acquisition last year of online bank ING Direct, but the results were marred by a sluggish performance at its international and investment banking units.

The results from Scotiabank, Canada's No. 3 lender, cap off a fourth-quarter earnings period that saw the country's top lenders benefit from steady if unspectacular growth in domestic lending and strong wealth management returns.

Scotiabank has eschewed the U.S. expansion strategy of some peers, and has instead built a large international footprint in Latin America and Asia through modest-sized acquisitions over several years.

The domestic acquisition of Dutch lender ING Groep's Canadian online bank late last year generated the bulk of the year-over-year profit increase.

The addition of ING Direct helped boost profit at Scotiabank's Canadian personal and commercial bank by rose 23 percent to C$593 million. Scotiabank said last month it will rebrand the unit under the name Tangerine.   Continued...