Scotiabank’s Profit Surge Does not impress Investors.

X

Hello there! You are new here, you might want to subscribe to our email Newsletter for our Daily Updates.

On Tuesday, the Bank of Nova Scotia posted 4th quarter profits that were nearly tripled from the same period a year ago, when accounting provisions brought down earnings.

Scotiabank posted net income of $902 million for the 3 months that ended on October 31st. This is up from the $315 million that was reported in the 2008 quarter.

Scotiabank noted that the 4th quarter increase in profit is largely reflected in the recovery of $642 million in after tax charges that were taken in last year’s 4th quarter, as well as the impact of new acquisitions.

The big gain offset an increase in provisions for credit losses.

Scotiabank has set aside $420 million in the 4th quarter to cover bad loans. This is up $213 million from the 2008 quarter due to the global recession, however the provision has declined by $134 million from the 3rd quarter of 2009.

Analyst with Barclays Capital, John Aiken noted that Scotiabank’s earnings report as falling a little short of raised expectations.

Aiken went on to saying that profits did not come in above analysts’ expectations, but that was due to the fact that provisions for credit losses were lower than expected and that highlights that other areas were weaker than forecasted.

Scotiabank is expected to see continued growth in 2010, with good contributions from each of its business lines as the global economy moves from recession to recovery.

Related Posts

• Scotiabank Quartely Profit Triples
• Scotiabank Profits Drop 8%
• Scotiabank Profits Rise 14%
• Scotiabank Profit Increases 17%
• Scotiabank: Rise in Commodities Signals a Better Economy