Bank of Nova Scotia (BNS), Canada’s third-largest lender, beat profit forecasts in the third quarter of 2021, thanks to lower provisions for credit losses.

Net income came in at C$2.54 billion for Q3 2021 (C$1.99 per diluted share), up from C$1.3 billion (C$1.04 per share) for Q3 2020. Excluding one-time items, the bank earned C$2.01 per share, up from C$1.04 per share a year earlier. Analysts forecasted adjusted earnings of C$1.90 per share.

Provisions for credit losses fell to C$380 million from C$2.18 billion in the third quarter of 2020. (See Bank of Nova Scotia stock charts on TipRanks)

Profit from the Canadian Banking division rebounded strongly, rising 151.5% year-on-year to C$1.08 billion.

However, Scotiabank reported a decline in its Global Banking and Markets division. Net income fell to C$513 million, down 14.5% from the prior-year quarter.

Revenue rose 0.3% year-over-year to C$7.76 billion, beating estimates of C$7.74 billion.

Bank of Nova Scotia president and CEO Brian Porter said, "During the quarter, the Bank was recognized as the Most Innovative in Data by The Banker's Global Innovation in Digital Banking Awards 2021. This award recognizes our commitment to data and analytics and highlights our ability to identify and support our most vulnerable customers.

"We are also proud to highlight the Bank's recent closing of its inaugural USD$1-billion three-year sustainability bond offering, the largest sustainability bond issued by a Canadian corporate to date. This offering is yet another example of our social responsibility initiatives in support of our commitment to making a positive impact and creating better communities for every future."

On August 24, Canaccord Genuity analyst Scott Chan kept a Hold rating on BNS with a C$83 price target. This implies 3.1% upside potential.

The rest of the Street is cautiously optimistic on BNS, with a Moderate Buy consensus rating based on five Buys and four Holds. The average Bank of Nova Scotia price target of C$87.56 implies 9% upside potential to current levels.

TipRanks’ Smart Score

BNS scores a "Perfect 10” on TipRanks’ Smart Score rating system, indicating that the stock returns are very likely to beat the overall market.

Related News:
Scotiabank Earnings Preview: What to Expect
Scotiabank Leadership Wins 4 Sustainable Finance Awards
Scotiabank Offers Students Chance to Win C$30,000 Scholarship

The post Scotiabank Q3 Profit Beats Expectations appeared first on TipRanks Financial Blog.

----------------------------

By: Stephanie Bedard-Chateauneuf
Title: Scotiabank Q3 Profit Beats Expectations
Sourced From: blog.tipranks.com/scotiabank-q3-profit-beats-expectations/
Published Date: Tue, 24 Aug 2021 14:40:36 +0000

Read More