Scotiabank's Mexico Unit 4Q Net Profit MXN975.7 Million Vs MXN662<@SM>Million

MEXICO CITY -(Dow Jones)- The Mexican arm of Canada's Bank of Nova Scotia (BNS) said Friday its fourth-quarter net profit rose 47.4% on the year thanks tohigher revenue from lending and commissions.

Net profit was 975.7 million pesos ( $91.1 million), up from MXN662 million inthe year-ago quarter, Grupo Scotiabank said in a press release.

For the full year, net profit was MXN4.05 billion, down from MXN4.14 billionin 2006.

Net interest income for the quarter rose 8.9% to MXN1.93 billion thanks tostrong growth in higher-yielding retail loans, and a lower cost of funding.

Non-interest income grew 23.7% to MXN1.63 billion on the back of higherrevenue from securities trading and fee-generating businesses like insurance andmutual funds.

The bank's assets grew 3.4% to MXN135.7 billion at the end of December, asgrowth in consumer and mortgage loans offset prepayments in commercial andgovernment loans.

The bank's performing loan book grew 0.8% to nearly MXN89 billion at the endof the fourth quarter.

Asset quality continued to deteriorate during the quarter, due to risinglevels of delinquent credit card and mortgage loans.

The bank's non-performing loan ratio rose to 3% at year-end from 2.8% at theend of September, and 2.2% at the end of 2006.

Retail deposits grew 2.3% to MXN101.98 billion led by growth in checking andsavings accounts.

Grupo Scotiabank , which ranks as the country's sixth-largest bank by assets,has a nationwide network of about 602 branches and 1,307 ATMs.

-By Ken Parks, Dow Jones Newswires; 52-55-5080-3453; ken.parks@dowjones.com

(END) Dow Jones Newswires 03-03-08 1807ET Copyright (c) 2008 Dow Jones & Company, Inc.