Published on 29 May 2024 on Zacks via Yahoo Finance

Bank of Nova Scotia (BNS) Q2 Earnings Fall on Higher Provisions

The Bank of Nova Scotia's BNS second-quarter fiscal 2024 (ended Apr 30) adjusted net income was C$2.11 billion ($1.55 billion), which declined 2.6% year over year.A rise in expenses and a surge in provisions for credit losses hurt the results. However, higher revenues, an increase in loan balance and solid capital ratios were tailwinds.After considering non-recurring items, net income was C$2.09 billion ($1.54 billion), down 2.5% from the prior-year quarter.

Adjusted Revenues Rise, Expenses Increase

Total revenues were C$8.35 billion ($6.08 billion), up 5.5% year over year.Net interest income was C$4.69 billion ($3.46 billion), which increased 5.2%. Likewise, non-interest income grew 5.8% to C$3.65 billion ($2.69 billion).Non-interest expenses were C$4.69 billion ($3.46 billion), up 3.1%.Provision for credit losses jumped 42% to C$1 billion ($737 million). The rise reflects a deteriorating economic outlook.