Scotiabank forecasts 57 earnings growth for fiscal 2025
Credit costs to pressure future earnings, analyst says
Shares fall about 3 after missing profit estimates

Dec 3 Reuters Bank of Nova Scotia reported fourthquarter earnings below analysts39; expectations and warned about modest economic growth in key international markets including Mexico, sending shares of Canada39;s thirdlargest bank down about 3 on Tuesday.

Bay Street had been optimistic on the bank39;s prospects, upgrading its ratings and betting on CEO Scott Thomson39;s plan to focus on growth closer to home and the North American trade corridor, while holding back on spending in its less profitable markets in South America.

Scotiabank kicked off fourthquarter earnings for the big six Canadian banks, drawing investors39; attention to credit woes as consumers struggle to pay back highinterest loans.

The lender forecast fiscal 2025 earnings growth between 5 and 7, excluding the impact of its KeyCorp stake purchase, as it braces for new governments in the U.S. and Mexico. Analysts on average were expecting 9 growth, according to LSEG data.

The bank expects its provision for credit losses to remain slightly elevated in the first half of the year and trend positively through the end of 2025.

Executives told analysts on a call that while growth is expected to be positive, it would be more modest than previously projected with less certainty on nearterm growth, particularly in Mexico through the period of the…