Scotiabank Falls Short Of Q3 2023 Earnings Estimates

The Bank of Nova Scotia (TSX: BNS), operating as Scotiabank, released its fiscal Q3 2023 financials this morning, top billed by revenue of $8.09 billion. This is an increase from Q2 2023’s $7.93 billion and Q3 2022’s $7.80 billion, while analysts had expected an increase to $8.13 billion.

“The Bank delivered another quarter of stable earnings, strengthening our capital and liquidity metrics while prudently increasing loan loss allowances and managing expense growth as we navigate this period of economic uncertainty,” said Scotiabank CEO Scott Thomson.

In the three months ending July 31, Scotiabank’s net income ended at $2.21 billion, compared to $2.16 billion in the previous quarter and $2.59 billion in the previous year. The bottomline figure translates to $1.72 earnings per diluted share, missing by a hair the street estimate of $1.73 per share.

On an adjusted basis, revenue came in at $8.09 billion while net income came in at $2.23 billion, or $1.73 per share.

The bank also hiked its provision for credit losses, totaling $819 million, in contrast to $412 million, indicating a substantial rise of $407 million. This led to an escalation of the provision for credit losses ratio by 20 basis points, resulting in a new ratio of 42 basis points.

In the current quarter, Canadian Banking achieved adjusted earnings of $1,063 million, driven by a continuous increase in the provision for credit losses. For International Banking, adjusted earnings reached $654 million.

Global Wealth Management recorded adjusted earnings of $375 million. As for Global Banking and Markets, this quarter’s reported earnings stood at $434 million, marking a notable 15% year-over-year increase.

Scotiabank last traded at $62.82 on the TSX. 

Information for this briefing was found via Cedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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