Bank of Nova Scotia reported third-quarter earnings on Tuesday that beat analysts' expectations, driven by growth in its domestic and international banking businesses. Canada's third-biggest lender earned C$1.55 per share in the quarter, up from C$1.46 a year earlier. Analysts had on average expected earnings of C$1.48 per share, according to Thomson Reuters I/B/E/S.
The bank benefited from a decline in funds set aside to cover bad loans to energy companies, with a partial recovery in the price of oil helping borrowers pay back credit.
Like other Canadian and US lenders, Scotiabank had seen a rise in delinquent loans to energy firms due to weakness in the price of oil, which was at a 13-year low of $25 a barrel in January. But a 30 percent recovery in the price of oil during the latest quarter has alleviated some of those pressures.
Scotiabank's provision for credit losses fell to C$571 million, a C$181 million decline from the last quarter.
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