Accelerated customer adoption of digital channels and internal processes automation at Scotiabank this year led to an increase in efficiencies, as well as branch closures and staff reductions.

The $917.5 billion bank reported a $98 million restructuring charge related to closing 10% of its branches and a reduction in full-time employees, mainly in the middle and back offices, Chief Financial Officer Raj Viswanathan said during today’s fourth-quarter earnings call.

“These efficiencies are a result of our commitment to simplify processes and optimize distribution channels to run businesses more effectively while meeting changing customer needs,” he said.

Toronto-based Scotiabank reported an adjusted net income of $2 billion for its Q4 ending Oct. 31, up from $1.5 billion in the same period last year.

The bank also reported significant increases in digital engagement. Active mobile users were up 14% from last year, with overall digital use growing 7% in the most recent quarter. The bank shared its mobile numbers — which measure active mobile users as those who have logged onto its app during the past 90 days — in its presentation to shareholders.

“The pace of digital adoption and lack of migration back to traditional channels, as the pandemic recedes, has given us confidence to further accelerate our platform transformation towards digital channels in international banking,” Scotiabank President and CEO Brian Porter said. “Digital transformation is a top line growth engine, a cost-efficiency lever and a driver of enhanced customer experience.”

Much of the boost in mobile app usage came from the Pacific Alliance — a Latin American trade bloc that includes Chile, Colombia, Mexico and Peru — which saw 18% growth year over year compared with 10% growth YoY in Canada.

The bank also saw 7% overall active digital growth, which includes mobile app and website users within the past 90 days.

In Canada, digital sales rose to 21% from 16% YoY, excluding auto, broker-originated mortgages and mutual funds. Across all areas of the bank, digital sales increased to 42% this year compared with 36% in 2020.

Adjusted expenses rose 1% YoY “driven by higher performance-based compensation, professional fees, advertising and technology-related costs to support business growth,” Viswanathan said during the call. He added that expenses were partially offset by the impact of foreign currency translation, and lower personal and premises costs.

Technology costs increased slightly to $371.8 million in Q4 compared with $364.8 million in the third quarter. Technology costs for the year were up to $1.5 billion from $1.4 billion in 2020.