Scotiabank beats expectations on capital markets even as bad loan provisions grow
TORONTO — Bank of Nova Scotia beat analysts’ estimates for fourth-quarter profit on Tuesday, helped by income growth in its capital markets business, even as loan loss provisions rose and earnings in its international division slumped 61 per cent.
While earnings at Canada’s third-biggest bank improved from the previous quarter, when it was hit by the impact of the coronavirus pandemic in some of its Latin American markets, it remained below the levels seen a year earlier.
Loan loss provisions jumped 50 per cent to $1.13 billion, driven by increases in its international and Canadian banking divisions.
· Bank of Montreal profit jumps 33%
Scotiabank said adjusted net income attributable to shareholders fell to $1.8 billion, or $1.45 a share, in the three months through Oct. 31, compared with analysts’ expectations of $1.22 a share.
While earnings recovered 34 per cent from the prior quarter, they fell from $1.82 a share a year earlier.
Its international business profit tumbled to $283 million from $725 million a year ago.
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Bank of Montreal reported a 33 per cent rise in quarterly profit on Tuesday, as strength in its wealth management and capital markets businesses helped offset higher loan-loss provisions due to the COVID-19 pandemic.
Net income attributable to equity holders of the bank rose to $1.58 billion, or $2.37 per share, in the fourth quarter, from $1.19 billion, or $1.78 per share, a year earlier.
More to come …
© Thomson Reuters 2020