AGL 40.00 Decreased By ▼ -0.16 (-0.4%)
AIRLINK 129.53 Decreased By ▼ -2.20 (-1.67%)
BOP 6.68 Decreased By ▼ -0.01 (-0.15%)
CNERGY 4.63 Increased By ▲ 0.16 (3.58%)
DCL 8.94 Increased By ▲ 0.12 (1.36%)
DFML 41.69 Increased By ▲ 1.08 (2.66%)
DGKC 83.77 Decreased By ▼ -0.31 (-0.37%)
FCCL 32.77 Increased By ▲ 0.43 (1.33%)
FFBL 75.47 Increased By ▲ 6.86 (10%)
FFL 11.47 Increased By ▲ 0.12 (1.06%)
HUBC 110.55 Decreased By ▼ -1.21 (-1.08%)
HUMNL 14.56 Increased By ▲ 0.25 (1.75%)
KEL 5.39 Increased By ▲ 0.17 (3.26%)
KOSM 8.40 Decreased By ▼ -0.58 (-6.46%)
MLCF 39.79 Increased By ▲ 0.36 (0.91%)
NBP 60.29 No Change ▼ 0.00 (0%)
OGDC 199.66 Increased By ▲ 4.72 (2.42%)
PAEL 26.65 Decreased By ▼ -0.04 (-0.15%)
PIBTL 7.66 Increased By ▲ 0.18 (2.41%)
PPL 157.92 Increased By ▲ 2.15 (1.38%)
PRL 26.73 Increased By ▲ 0.05 (0.19%)
PTC 18.46 Increased By ▲ 0.16 (0.87%)
SEARL 82.44 Decreased By ▼ -0.58 (-0.7%)
TELE 8.31 Increased By ▲ 0.08 (0.97%)
TOMCL 34.51 Decreased By ▼ -0.04 (-0.12%)
TPLP 9.06 Increased By ▲ 0.25 (2.84%)
TREET 17.47 Increased By ▲ 0.77 (4.61%)
TRG 61.32 Decreased By ▼ -1.13 (-1.81%)
UNITY 27.43 Decreased By ▼ -0.01 (-0.04%)
WTL 1.38 Increased By ▲ 0.10 (7.81%)
BR100 10,407 Increased By 220 (2.16%)
BR30 31,713 Increased By 377.1 (1.2%)
KSE100 97,328 Increased By 1781.9 (1.86%)
KSE30 30,192 Increased By 614.4 (2.08%)
Print Print 2019-12-02

Scotiabank profit slightly beats estimates

Bank of Nova Scotia, Canada's third-biggest lender, posted a 1.6% rise in quarterly profit on Tuesday, slightly exceeding expectations as loan and deposit growth and international earnings offset falling margins and higher credit provisions.
Published 02 Dec, 2019 12:00am

Bank of Nova Scotia, Canada's third-biggest lender, posted a 1.6% rise in quarterly profit on Tuesday, slightly exceeding expectations as loan and deposit growth and international earnings offset falling margins and higher credit provisions.

Scotiabank reported adjusted earnings attributable to common shareholders of C$2.23 billion ($1.68 billion), or C$1.82 a share, compared with estimates of C$1.81. That compared with C$2.17 million, or C$1.77 a share, a year ago.

For fiscal 2019, the bank posted a 2.9% increase in profit to C$9.4 billion. Provisions for credit losses during the quarter jumped 28% to C$753 million.

Growing economic uncertainties that have raised the prospect of interest rate cuts at home, higher provisions for loan losses and sluggish deal-making have weighed on Canadian banks in recent quarters. Analysts expect the lenders to post their worst growth since the global financial crisis this fiscal year.

Canada's central bank held interest rates steady last month, but left the door open for a possible cut in the coming months to help the economy weather the damaging effects of the trade war.

Scotiabank's results were helped by its focus on international markets - particularly the Pacific Alliance trading bloc of Peru, Mexico, Chile and Colombia, which now accounts for around a quarter of its revenue. The division's 4.3% adjusted earnings growth outpaced the Canadian unit's more staid 1.2% increase.

But that was tempered by a 9 basis point decrease in net interest margins in the international division, compared with a 2 basis point rise in Canada. Scotiabank's global banking and markets unit was also beset by the challenges seen across the rest of the capital markets sector, with net income and margins declining while expenses climbed.

Copyright Reuters, 2019

Comments

Comments are closed.