Higher Provisioning Again Hurts Results for Scotia

Hopefully This Quarter Will Be the Peak

Eric Compton 26 August, 2020 | 8:34AM


Narrow-moat Bank of Nova Scotia (BNS), or Scotiabank, reported fiscal third-quarter results that came in a bit under CapIQ consensus expectations. Adjusted diluted EPS was down 45% year over year, coming in at $ 1.04 per share. For comparison, peer bank BMO reported a decline in EPS of 23% year over year. Preprovision pretax profits still held up reasonably well, down 3% year over year, however, provisioning remained elevated, increasing from secondquarter levels. Third-quarter provisioning was $ 2.2 billion, compared with $ 1.8 billion last quarter and a more normalized pre-coronavirus run rate of roughly $ 500 million to $ 700 million per quarter in 2018 and 2019. The bank&rsqu

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Bank of Nova Scotia55.15 CAD-0.05

About Author

Eric Compton

Eric Compton  Eric Compton is an equity analyst for Morningstar,

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