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Bank of Nova Scotia Profit Falls, Revenue Misses Targets in 4Q

By Adriano Marchese

 

Bank of Nova Scotia on Tuesday reported a drop in its fiscal fourth-quarter profit, while revenue fell slightly in the period, missing analyst expectations of growth.

For the three months ended Oct. 31, the Canadian banking and financial services company reported lower net earnings of 2.06 billion Canadian dollars ($1.53 billion) or C$1.63, compared with C$2.49 billion, or C$1.97 a share in the prior year period.

On an adjusted basis, earnings fell by a smaller margin to C$2.06 from C$2.10, while analysts expected a greater decline to C$2.00 a share.

Total revenue fell to C$7.63 billion from C$7.69 billion, missing analyst consensus expectations of a rise to C$8.05 billion.

Return on equity for the quarter fell to 11.9% from 14.8% a year ago.

Common tier equity 1 ratio, a measure of a bank's capital compared with its assets, was 15.3%, down slightly from 15.9%.

Provision for credit losses rose to C$529 million from C$168 million in the same time last year.

Among Scotiabank's segments, its global banking markets and global wealth management units posted declines, with net income falling to C$484 million from C$502 million, and to C$363 million from C$387 million, respectively.

 

Write to Adriano Marchese at adriano.marchese@wsj.com

 

(END) Dow Jones Newswires

November 29, 2022 06:52 ET (11:52 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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