Proactive Investors - Bank of Nova Scotia ({{TSX:BNS) shares fell 4% to C$57.76 in midday trading on Tuesday after the Canadian bank announced fourth quarter adjusted earnings per share (EPS) that declined 36% year over year to $1.26, falling far short of the $1.65 forecast, according to LSEG data.
Its expenses for the period, meanwhile, rose 10% on an adjusted basis, driven by higher salaries and other costs, which increased more than its revenue that grew to $8.31 billion from $7.63 billion during the same period last year.
Scotiabank (TSX:BNS) also raised its provision for credit losses in 4Q to $1.26 billion from $529 million a year ago, as a result of unfavourable economic outlook and "continued uncertainty around the impact of higher interest rates."
As well, the company’s Return on Equity for the quarter dropped to 7.2% from 11.9% a year earlier.
"Strong capital and liquidity ratios, improving loan to deposit ratios and increased allowance for credit losses coverage ratios, position us well as we enter the next phase of our growth strategy," Scotiabank CEO Scott Thomson said in a statement.
Looking ahead, the financial institution stated that it expects its earnings will rise "marginally" in 2024, as Scotiabank expects to benefit from interest-earning assets.
In October, the bank said it would cut around 2,700 jobs globally, or about 3% of its workforce.
Scotiabank is Canada's third-largest bank by assets.