Bank of Nova Scotia (TSX:BNS) on Tuesday reported quarterly earnings that missed analysts' expectations, as higher provisions for credit losses—driven in part by ongoing trade and economic uncertainty—offset revenue growth.
The Toronto-based lender said net income for the quarter ended April 30 fell to C$2.03 billion, or C$1.48 per diluted share, from C$2.09 billion, or C$1.57 per share, a year earlier.
On an adjusted basis, Scotiabank earned C$1.52 per share, below analysts’ average estimate of C$1.56, according to LSEG Data & Analytics.
The bank’s provisions for credit losses rose by C$391 million from a year earlier to C$1.4 billion, reflecting heightened caution amid macroeconomic headwinds.
Despite the earnings miss, total revenue climbed to C$9.08 billion from C$8.35 billion, supported by gains across several business lines.
Scotiabank’s Canadian banking segment posted net income of C$613 million, down from C$893 million a year ago, pressured by higher credit loss provisions and increased non-interest expenses. The bank’s international operations, meanwhile, saw a modest increase in net income to C$676 million from C$639 million.
The global wealth management division reported net income of C$399 million, up from C$341 million, while the global banking and markets unit earned C$413 million, compared with C$375 million a year earlier.
The bank maintained a strong capital position with a common equity tier 1 (CET1) ratio of 13.2%, comfortably above the regulatory minimum of 11.5%. Scotiabank also announced a share buyback program aimed at enhancing shareholder returns.