May 31, 2016 by admin

Scotiabank sees Q2 profit fall 12% with restructuring charge

TORONTO — Scotiabank saw its second-quarter profit fall to $1.58 billion as it took a restructuring charge and set aside more money for bad loans.
The profit was down nearly 12 per cent compared to $1.80 billion of net income during the same period last year.
The earnings amounted to $1.23 per share (TSX:BNS), down from $1.42 per share a year ago.
After adjusting for a $278-million restructuring charge, which Scotiabank (TSX:BNS) announced earlier this month, the bank’s second-quarter profit rose four per cent to $1.86 billion, or $1.46 per share.
Meanwhile, provisions for credit losses rose to $752 million during the quarter, up from $448 million during the same period last year.
The higher provisions for credit losses were due to the effect of weak energy prices on two of Scotiabank’s divisions.
Scotiabank’s president and CEO Brian Porter said loan losses in the energy sector are expected to decline next quarter.
“Customer behaviours and preferences continue to evolve, and Scotiabank is driving a digital transformation across all customer touch points in order to deliver a consistently excellent customer experience,” Porter said in a statement.
“The bank’s investments to reduce structural costs, including this quarter’s restructuring charge, will contribute to the digital transformation of the bank. Combined, these efforts should result in notable improvements in our productivity.”