Scotiabank executives say interest rates will increase again in 2019

By Devika Patel

Knoxville, Tenn., Nov. 27 – Bank of Nova Scotia (Scotiabank) executives cannot predict exactly when rates are going to increase again, but management is certain it will be within 2019.

“We are in a rising interest rate environment, which is positive for margins,” president and chief executive officer Brian J. Porter said on the Toronto-based bank’s third quarter ended Sept. 30 earnings conference call on Tuesday.

Management does not know when rates will go up in 2019, but it is fairly certain that rates will increase again.

“I have not seen a scenario in front of me where we do not have more margin expansion in 2019 than 2018,” executive vice president and chief financial officer Raj Viswanathan said on the call.

“Readily acknowledging that we don’t have a crystal ball, the timing of rate increases and clearly competitive dynamics in various lending and deposit markets are a significant factor here,” Viswanathan said.

Overall, the macro economy is doing well in the Americas.

“On the macro front, while we are mindful of emerging risks, we are encouraged by the positive economic conditions in the Americas,” Porter said.

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