TSX:BNS - Post Discussion
Post by
Dibah420 on Feb 28, 2023 9:29am
NA, First Look
| National Bank with First Look at Scotiabank's Q1, Notes Broad-based Miss |
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09:11 AM EST, 02/28/2023 (MT Newswires) -- National Bank of Canada noted Tuesday that Scotiabank (BNS.TO) reported Q1 core cash EPS of $1.85 that missed its forecast of $2.08 and consensus of $2.02 due to lower revenue, higher expenses and other items, offset by a lower tax rate. National Bank said in a noted Scotiabank's consolidated net interest margin was down seven basis points quarter on quarter, and that Canadian and international banking segments delivered flat to negative margins. It also noted that the CET 1 ratio at 11.5% was slightly higher than its forecast of 11.4%. Provisions for credit losses, or PCL, at $638 million exceeded National Bank's $616 million forecast and consensus of $619 million. According to the note, Scotiabank's consolidated pre-tax, pre-provision, or PTPP, earnings were down 8% year on year and consolidated revenue, excluding trading revenue, was down 1% year on year. Scotiabank's Canadian personal and commercial banking segment posted adjusted PTPP earnings growth of 7% year on year. Net interest margin was flat and provision for credit losses ratio of 19 basis points was up four basis points quarter on quarter. Segment loan growth was 9% year on year, led by 22% growth in commercial and 7% expansion in mortgage loans. Cards balances were up 12% year on year, National Bank noted. Scotiabank's international banking segment recorded adjusted PTPP growth of 11% year on year. PCL ratio of 96 basis points was up seven basis points quarter on quarter while net interest margin decreased eight basis points to 4.00%. Year-on-year loan growth of 13% was driven by mortgages, up 14%, and commercial, up 13%. National Bank also noted that Scotiabank's capital markets adjusted PTPP fell 1% year on year but trading revenue of $722 million was above its $530 million estimate. Advisory revenue of $102 million mission National Bank's $140 million estimate. National Bank has a Sector Perform rating on Scotiabank and a price target of $75.00 |
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