June 22nd, 2024

Scotiabank reports Q1 profit down, provisions for credit losses up from a year ago

By The Canadian Press on February 28, 2023.

The Bank of Nova Scotia building is shown in the financial district in Toronto on Tuesday, August 22, 2017. THE CANADIAN PRESS/Nathan Denette

TORONTO – Scotiabank reported its first-quarter profit fell compared with a year ago as its provisions for credit losses climbed higher.

The bank said Tuesday it earned $1.77 billion or $1.36 per diluted share for the quarter ended Jan. 31, down from a profit of $2.74 billion or $2.14 per diluted share in the same period a year earlier.

Revenue totalled $7.98 billion, down from $8.05 billion.

Provisions for credit losses amounted to $638 million, up from a provision of $222 million in the same quarter last year.

On an adjusted basis, Scotiabank says it earned $1.85 per diluted share compared with an adjusted profit of $2.15 per diluted share a year earlier.

Analysts on average had expected a profit of $2.03 per share, according to estimates compiled by financial markets data firm Refinitiv.

“The bank’s performance in the first quarter of 2023 reflects both the merits of a diversified platform, and also the continued relative pressure on our profitability given our funding profile,” Scotiabank CEO Scott Thomson said in a statement.

Scotiabank said its Canadian banking earned net income attributable to equity holders of $1.09 billion, up from $1.20 billion in the same quarter last year, while its international banking operations earned net income attributable to equity holders of $654 million compared with $545 million a year ago.

Scotiabank said its global wealth management division earned net income attributable to equity holders of $385 million, down from $412 million in the same quarter last year.

The bank’s global banking and markets group earned net income attributable to equity holders of $519 million, down from $561 million a year ago.

In its other category, Scotiabank reported a loss attributable to equity holders of $913 million, including an income tax charge of $579 million related to the Canada Recovery Dividend, compared with a loss of $67 million a year earlier.

This report by The Canadian Press was first published Feb. 28, 2023.

Companies in this story: (TSX:BNS)

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