Bank of Nova Scotia 2Q Profit Falls, Revenue Misses

By Adriano Marchese

Bank of Nova Scotia on Wednesday reported a drop in its second-quarter profit and flat revenue as allowance for credit losses weigh on earnings.

For the three months ended April 30, the Canadian financial institution reported a lower net income of 2.16 billion Canadian dollars ($1.6 billion), or C$1.69 a share, compared with C$2.75 billion, or C$2.16 a share a year earlier.

Adjusted earnings fell to C$1.70 a share, from C$2.18 a share. According to FactSet, analysts were expecting a decline, though not as sharp, forecasting C$1.77 a share.

Total revenue in the period was virtually unchanged at C$7.93 billion compared with C$7.94 billion, while analysts had expected an increase to C$8.02 billion.

Common equity tier 1 capital ratio was 12.3%, an increase of about 80 basis points.

Allowance for credit losses at the end of the quarter rose to C$5.93 billion from C$5.67 billion, which the bank blames largely on the effect of foreign currency translation in international banking portfolios as well as a continued unfavorable macroeconomic outlook which has hit corporate and commercial portfolios.

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

(END) Dow Jones Newswires

May 24, 2023 06:25 ET (10:25 GMT)

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