The lender’s net income in the second quarter was $2.63 billion, almost 30 per cent higher than the same period last year and ahead of analyst expectations, according to data from S&P Global Market Intelligence. But TD Cowen analyst Mario Mendonca pointed out in a note that flat loan growth on average across the bank is cause for concern. (The Logic)

Talking point: Scotiabank is two and a half years into a pivot away from international markets, focusing on North America instead. Those efforts showed up in the lender’s Canadian banking profits this quarter, which were up 53 per cent year-on-year to $935 million. However, Mendonca highlighted that Canadian commercial loans increased just two per cent in the quarter, while international loans declined two per cent from the previous year excluding divestitures. On a call with analysts, CEO Scott Thomson said he expects “to catch up to the broader market” on loan growth by the end of the year. He also said he’s seen an uptick in interest in investing in Canada, among both international financiers and domestic pension funds.