“Whereas impaired mortgage formations slowed considerably within the quarter, they continue to be elevated, notably in Scotia’s retail portfolios.”
The second earnings beat in a row was notable given the financial institution’s monitor report of misses in prior years, mentioned Nationwide Financial institution analyst Gabriel Dechaine in a observe.
He mentioned he continues to view 2024 as a “no development” yr for Scotiabank, because the financial institution has considerably guided as it really works by a company-wide strategic shift.
“We consider weak mortgage development and better credit score losses are among the extra essential headwinds for the financial institution, which can prolong into 2025.”
The financial institution may additionally breach its steering on its loss charge because it’s already virtually on the high finish, he mentioned.
Will Scotiabank increase its dividend?
Given Scotiabank’s concentrate on its strategic plan, the financial institution skipped its customary second quarter dividend enhance, saying it expects to renew will increase subsequent yr as development picks up.
Scotiabank mentioned its internet revenue attributable to fairness holders for its Canadian banking enterprise totalled $1.01 billion, down from $1.06 billion a yr earlier primarily resulting from a better provision for credit score losses and non-interest bills, partly offset by larger revenues.
In the meantime, it mentioned its worldwide banking operations earned internet revenue attributable to fairness holders of $671 million, up from $636 million in the identical quarter final yr.
