Breakdown of Q4 earnings...Excerpt from Globe & Mail... Stefanie Marotta - Banking Reporter.... Scotiabank reported a fourth-quarter profit of $1.69 billion, up from $1.35 billion in the same period last year, as it set aside a smaller amount for bad loans compared with a year ago. Andrew Lahodynskyj/The Canadian Press * Earnings Q4 2024: $1.69-billion ($1.22 per share) * Earnings Q4 2023: $1.35-billion ($0.99 per share) * Adjusted EPS: $1.57 per share * Analysts’ expectations: $1.60 per share (adjusted) * Dividend: $1.06 per share Bank of Nova Scotia reported higher fourth-quarter profit but missed analysts’ estimates as the lender boosted revenue and set aside fewer provisions for loans that could default.
Scotiabank earned $1.69-billion, or $1.22 per share, in the three months that ended Oct. 31, compared with $1.35-billion, or $0.99 per share, in the same quarter last year.
Adjusted to exclude certain items, including impairment charges related to Scotiabank’s investment in China-based Bank of X’ian Co Ltd. and severance provisions, the bank said it earned $1.57 per share. That fell below the $1.60 per share analysts expected, according to data from the London Stock Exchange Group.
Scotiabank is one year into its new strategic plan aimed at reallocating more money to its North American businesses, where it believes it has bigger opportunities for growth than in its Latin American operations, and growing its deposit base. In August, the lender took a 14.9-per-cent ownership stake in Cleveland-based KeyCorp.
The bank kept its quarterly dividend unchanged at $1.06 per share.
In the quarter, Scotiabank set aside $1.03-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated, but included $1.04-billion against loans that may not be repaid, based on models that use economic forecasting to predict future losses. The higher impaired loans were slightly offset by a $13-million recovery in performing loans.
In the same quarter last year, Scotiabank had a set aside of $1.26-billion in provisions, as the bank rebuilt its reserves from the recoveries it made during the COVID-19 pandemic.
Total revenue rose 3 per cent in the quarter, to $8.53-billion, while expenses decreased 4 per cent to $5.3-billion.