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UPDATE 1-Scotiabank profit tops estimates, energy-sector bad loans rise

Published 2015-08-28, 07:40 a/m
© Reuters. UPDATE 1-Scotiabank profit tops estimates, energy-sector bad loans rise
BNS
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(Adds details on oil-and-gas sector loans, segment earnings)
TORONTO, Aug 28(Reuters) - Bank of Nova Scotia BNS.TO
reported a quarterly profit that beat market expectations on
Friday on growth in its international retail banking segment,
while bad loans in the energy sector climbed as the oil price
selloff took a toll.
Gross impaired loans to the oil-and-gas sector more than
doubled in the quarter to C$96 million, from the same period
last year.
All of the five biggest Canadian banks have reported
increases in energy-sector bad loans in the third quarter,
marking a clear trend that confirms investor worries about the
impact the oil price weakness was having on the lenders.
Net income for Scotiabank , Canada's third-largest bank, in
the quarter ended July 31 was C$1.85 billion, or C$1.45 per
share, compared with C$2.35 billion, or C$1.85 per share, a year
ago. Core earnings were C$1.47 per share.
Analysts on average had expected earnings of C$1.45 per
share, according to Thomson Reuters I/B/E/S.
Earnings for the international banking business climbed 11
percent, helped by loan growth across Latin America and higher
fee income.
The Canadian unit's profit fell due in part to a gain
recorded in the year-earlier period. Excluding special items,
the segment grew 15 percent.
But the lender's global banking and markets division
recorded a 20 percent drop in profit, reflecting weakness in
investment banking and higher provisions for credit losses.
Scotiabank also increased its quarterly dividend.

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