The U.S. operations of Canada’s Bank of Nova Scotia are benefiting from strong loan growth, partly compensating for recent sluggishness in its capital markets business that is weighing down profits.
Between May and July, the Toronto-based bank recorded a 22% increase in loan balances from the same period a year earlier, with the largest contribution coming from the United States.
“You’ve seen continued strong loan growth in our focus markets like the U.S. and Canada,” Jake Lawrence, group head and CEO of Scotiabank’s global banking and markets division, said Tuesday during an earnings call.
Still, earnings in Scotiabank’s global banking and markets division declined by 26% to $291 million in U.S. dollars.
Issuances in the bank’s debt capital markets business fell by more than 60% in both the United States and Canada, while equity capital market issuances declined by more than 80% in each…
