Post by
FiddyFiddyShot on Nov 28, 2023 9:11am
BNS Shares Expected to Struggle After Big 4Q Earnings Miss
Bank of Nova Scotia notched a big 4Q EPS miss, driven by a jump in loan losses in Canadian retail lending, weaker revenue and higher expenses, all of which are likely to concern investors, Keefe, Bruyette & Woods' Mike Rizvanovic says. He expects Scotiabank's shares to underperform today, despite what is already a sizable relative valuation discount. Adjusted EPS at C$1.26 was well below the C$1.69 Rizvanovic forecast, provisions for credit losses at C$1.26 billion outpaced the C$992 million expected and total revenue also was a miss. As well, total expenses were higher than anticipated, buoyed by a broad jump in areas including tech-related costs and performance-based compensation.