Renewable Energy

Scotiabank misses profit estimates on surge in provisions, non-interest expenses

Credit: REUTERS/CHRIS WATTIE

Bank of Nova Scotia, Canada's third-biggest lender, on Tuesday missed analysts' estimates for second-quarter profit, as a jump in provisions for bad loans and non-interest expenses offset gains from its international banking division.

Adds international and domestic net income, compares with analysts' estimates

May 28 (Reuters) - Bank of Nova Scotia BNS.TO, Canada's third-biggest lender, on Tuesday missed analysts' estimates for second-quarter profit, as a jump in provisions for bad loans and non-interest expenses offset gains from its international banking division.

Adjusted non-interest expenses rose 7.7% to about C$4 billion from a year earlier, while its provisions for credit losses - the money set aside to cover bad loans - surged 35% to C$722 million.

Scotiabank, which has the biggest overseas presence among Canada's major banks, is focusing on the Latin American trade bloc comprising of Mexico, Peru, Chile and Colombia.

Adjusted net income of the bank's Canadian banking business grew about 4% in the quarter ended April 30, while net income of its relatively smaller international banking business unit grew about 20%.

Scotiabank reported adjusted net profit attributable to shareholders of C$2.08 billion, or C$1.70 per share, in the quarter, compared with C$2.06 billion, or C$1.71 per share, a year earlier. (https://reut.rs/2KhjnDJ)

Analysts on average had expected a profit of C$1.74 per share, according to IBES data from Refinitiv.

(Reporting by Bharath Manjesh in Bengaluru; Editing by James Emmanuel)

((Bharath.ManjeshR@thomsonreuters.com; outside U.S. +91 80 6749 8400; Reuters Messaging: Bharath.ManjeshR.thomsonreuters.com@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Reuters

Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

Learn More