Scotiabank earnings: second quarter profit lower compared to last year

Bank of Nova Scotia said its second-quarter profit fell from a year ago as it set aside more money for loan losses.

The bank said Tuesday that its net income fell to $2.09 billion, or $1.57 per diluted share, in the quarter ended April 30, down from $2.15 billion, or $1.68 per diluted share, this year. same quarter of last year.

Revenue was $8.35 billion, up from $7.91 billion a year earlier.

The bank’s reserve for loan losses for the quarter was $1.01 billion, compared with $709 million in the same quarter last year.

Scotiabank said it earned an adjusted profit of $1.58 per diluted share in the most recent quarter, compared with adjusted earnings of $1.69 per share a year earlier.

According to data provided by LSEG Data & Analytics, average analyst earnings were projecting an average earnings per share of $1.56.

“The bank delivered solid performance this quarter against a backdrop of continued macroeconomic uncertainty, with positive operating leverage driven by revenue growth and continued cost discipline,” Scotiabank CEO Scott Thomson said in a statement.

Scotiabank said its net income attributable to shareholders in its Canadian banking business was $1.01 billion, up from $1.06 billion a year earlier, primarily due to higher provisions for loan losses and non-interest expenses, partially offset by higher revenue.

Meanwhile, the company said its international banking business generated net income attributable to shareholders of $671 million, up from $636 million in the same quarter last year.

The bank’s global wealth management business generated $380 million of net income attributable to shareholders, up from $353 million a year earlier, while its global banking and markets business earned $428 million of net income attributable to shareholders, up from $401 million a year earlier ago .

In the most recent quarter, Scotiabank’s “other” category posted a net loss attributable to shareholders of $421 million, compared with a loss of $323 million last year.

This report by The Canadian Press was first published May 28, 2024.