(Reuters) – The Bank of Nova Scotia reported a drop in second-quarter profit on Wednesday after the Canadian lender set aside higher provisions.
The results come as investor confidence has further deteriorated in markets amid high volatility triggered by U.S. banking turmoil and a relentless rate hike cycle.
Adjusted income from its Canadian banking segment fell 10% reflecting higher provisions for credit losses, Scotiabank said.
Provisions for credit losses rose to C$709 million from $219 Cmillion, driven higher primarily by economic uncertainty and challenging market conditions in Chile and Colombia due to rising inflation.
Net income for the three months ended April 30 excluding one-off items fell to C$2.17 billion ($1.62 billion), or C$1.7 a share, from C$2.77 billion, or C$2.18 a share, a year earlier.
That topped the C$1.78 per share expected by analysts, Refinitiv Eikon data showed.
($1 = 1.3372 Canadian dollars)
(Reporting by Nivedita Balu in Toronto and Mehnaz Yasmin in Bengaluru; editing by Jason Neely)
