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Scotiabank profit beats estimates on international banking strength

Published 2019-08-27, 06:35 a/m
© Reuters.  Scotiabank profit beats estimates on international banking strength
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Aug 27 (Reuters) - Bank of Nova Scotia BNS.TO , Canada's third-biggest lender, beat analysts' estimates for quarterly profit on Tuesday, benefiting from lower provisioning for credit losses and strength in its international banking business.

Net income in the unit nearly doubled, surging 90% to C$902 million, from a year ago, while that in the company's bigger domestic banking business grew about 3% to C$1.16 billion.

Scotiabank , which has the biggest overseas presence among the country's major banks, is focusing its international strategy on the Latin American trade bloc comprising Mexico, Peru, Chile and Colombia.

Provision for credit losses fell to C$713 million in the quarter from C$943 million a year ago, compared to a rise in provisions at bigger rival Royal Bank of Canada RY.TO and Canadian Imperial Bank of Commerce CM.TO which reported results last week.

Scotiabank's net income rose to C$1.98 billion ($1.49 billion) or C$1.50 per share, in the quarter ended July 31, compared with C$1.94 billion, or C$1.55 per share, a year earlier. (https://reut.rs/322vda4)

On an adjusted basis, the company earned C$1.88 per share, which excluded a one-time loss of C$400 million, arising from the sale of its operations in Puerto Rico and the U.S. Virgin Islands. (https://reut.rs/2Pf2ugV)

Analysts on average had expected a profit of C$1.85 per share, according to IBES data from Refinitiv. ($1 = 1.3275 Canadian dollars)

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