TORONTO, Aug 23 Reuters Bank of Nova Scotia reported thirdquarter profit a touch below estimates on Tuesday, but earnings rose from a year earlier as strong loan growth, particularly in its international business helped offset challenges in its wealth and capital markets units.
Canada39;s thirdlargest lender said net income excluding oneoff items was C2.61 billion 2 billion, or C2.10, in the three months ended July 31, compared with C2.56 billion, or C2.01, a year earlier. Analysts had expected C2.11 a share, according to Refinitiv data.
Provisions for credit losses PCL rose, to C412 million from C380 million, although they were lower than the C535.6 million that analysts had expected.
Markets have been expecting PCLs to begin to tick higher, reversing the trend of the past several quarters, as banks brace for a rise in potential delinquencies driven by rising inflation and interest rates.
Adjusted pretax, preprovision earnings fell 1 from a year earlier.
Still, strong loan growth and higher margins resulting from rising interest rates gave Scotiabank39;s earnings a boost.
Its international business reported a 30 jump in adjusted earnings, driven by strong loan growth and margin expansion.
The same factors drove a 12 increase in earnings in its Canadian unit.
That helped offset a 26 decline in profit in its global banking and markets business driven by challenging market conditions. Lower fees due to market volatility drove earnings 3 lower in its wealth…