Scotiabank announced results for the first quarter of 2002,
reporting net income of $52 million, and earnings per share (diluted) of
$0.05. This included charges of $540 million (after tax) related to Argentina.
Excluding these charges, net income was $592 million, with earnings per share
of $1.10. This compares to net income of $510 million and earnings per share
of $0.95 in the same quarter in 2001.
“Given the extraordinary political and economic upheaval in Argentina,
the Bank has carefully reviewed its exposures and taken significant additional
charges of $540 million this quarter. The entire Argentine economy, including
the financial sector, has been negatively impacted,” said Peter C. Godsoe,
Chairman and CEO.
“Our senior management and more than 1,700 employees continue to operate
Scotiabank Quilmes under very difficult circumstances, and they are doing an
outstanding job. We continue to work closely with the Argentine authorities
and have received excellent support from the Canadian government. However,
there is still a great deal of uncertainty concerning the implementation of a
comprehensive recovery plan for the Argentine economy, including the financial
“Earnings momentum remained strong across almost all other businesses —
domestic banking including wealth management, capital markets and other areas
of our international operations. We saw broad-based revenue gains of 14% over
last year, and expenses remained well controlled.”
(1) Refer to details of charges related to Argentina, see below.Details