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