Scotiabank reports Q1 profit down, provisions for credit losses up from a year ago

TORONTO –

Scotiabank reported its first-quarter revenue fell in contrast with a 12 months in the past as its provisions for credit score losses climbed greater.

The financial institution mentioned Tuesday it earned $1.77 billion or $1.36 per diluted share for the quarter ended Jan. 31, down from a revenue of $2.74 billion or $2.14 per diluted share in the identical interval a 12 months earlier.

Revenue totalled $7.98 billion, down from $8.05 billion.

Provisions for credit score losses amounted to $638 million, up from a provision of $222 million in the identical quarter final 12 months.

On an adjusted foundation, Scotiabank says it earned $1.85 per diluted share in contrast with an adjusted revenue of $2.15 per diluted share a 12 months earlier.

Analysts on common had anticipated a revenue of $2.03 per share, in response to estimates compiled by monetary markets information agency Refinitiv.

“The bank’s performance in the first quarter of 2023 reflects both the merits of a diversified platform, and also the continued relative pressure on our profitability given our funding profile,” Scotiabank CEO Scott Thomson mentioned in a press release.

Scotiabank mentioned its Canadian banking earned web earnings attributable to fairness holders of $1.09 billion, up from $1.20 billion in the identical quarter final 12 months, whereas its worldwide banking operations earned web earnings attributable to fairness holders of $654 million in contrast with $545 million a 12 months in the past.

Scotiabank mentioned its world wealth administration division earned web earnings attributable to fairness holders of $385 million, down from $412 million in the identical quarter final 12 months.

The financial institution’s world banking and markets group earned web earnings attributable to fairness holders of $519 million, down from $561 million a 12 months in the past.

In its different class, Scotiabank reported a loss attributable to fairness holders of $913 million, together with an earnings tax cost of $579 million associated to the Canada Recovery Dividend, in contrast with a lack of $67 million a 12 months earlier.

This report by The Canadian Press was first revealed Feb. 28, 2023.