Scotiabank misses profit on higher provisions, flags slow mortgage growth

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Scotiabank misses profit on higher provisions, flags slow mortgage growth
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Bank of Nova Scotia, Canada's third-biggest lender, on Tuesday missed analy...

- Bank of Nova Scotia, Canada’s third-biggest lender, on Tuesday missed analysts’ estimates for second-quarter profit and forecast low-single-digit growth in mortgages this year, citing a slow start to the domestic housing market.

Adjusted non-interest expenses rose 7.7% to about C$4 billion in the quarter from a year earlier, while its provisions for credit losses - the money set aside to cover bad loans - surged 35% to C$722 million . Provisions also rose at Scotiabank’s Canadian and international banking units, as it set aside more money to meet futures losses in its personal loan portfolio.

Adjusted net income of Scotiabank’s Canadian banking business unit grew about 4% in the quarter ended April 30, while net income from its relatively smaller international banking division surged about 20%.

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