Scotiabank's Q4 Profits Drop Due to Higher Credit Provisions

Bank of Nova Scotia (Scotiabank) reported lower-than-expected profits for the fiscal fourth quarter as it set aside more money than anticipated for potential loan losses. The bank's provisions for credit losses totaled C$1.26 billion ($925 million), higher than the C$870 million analysts had predicted. Scotiabank attributed the higher provisions to economic turmoil in both its Canadian and Latin American operations. The bank also reported lower capital-markets earnings due to slower trading activity. Despite the challenging financial year, CEO Scott Thomson expressed confidence in increased earnings for 2024 driven by productivity initiatives and a more stable rate environment.