Scotiabank reports second-quarter profit, in a May 26, 2020 story. (Photo by THE CANADIAN PRESS)

Scotiabank Q2 profit down from year ago as provisions for credit losses soar

TORONTO — Scotiabank reported a second-quarter profit of $1.32 billion, down sharply from a year ago, as its provisions for bad loans more than doubled compared with a year ago.

The bank’s provisions for credit losses totalled nearly $1.85 billion for the quarter, up from $873 million a year ago, as the COVID-19 pandemic crushed the economy.

Scotiabank says its profit for the quarter ended April 30 amounted to $1.00 per diluted share compared with a profit of nearly $2.26 billion or $1.73 per diluted share in the same quarter last year.

On an adjusted basis, the bank says it earned $1.04 per diluted share in the quarter compared with $1.70 per diluted share a year ago.

Analysts on average had expected Scotiabank to earn an adjusted profit of 98 cents per share for the quarter, according to financial markets data firm Refinitiv.

Scotiabank chief executive Brian Porter says the bank’s results were significantly impacted by the COVID-19 pandemic, but added it is well positioned from a capital and liquidity perspective and appropriately reserved for potential credit losses.

This report by The Canadian Press was first published May 26, 2020.

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