The main bank in Nova Scotia recently revealed the information of its earnings for the third-quarter. And all the forecast from analysts were lower. Bank received the growth of earnings by its wide-spreading international and home banking operations.
It is the third biggest lender in Canada. And its share costs 1.55 Canadian dollars this quarter. And before the increase, its stocks were sold for 1.46 Canadian dollars per one.
The most common expectations were 1.48 dollars of Canada. Still, analysts were wrong.
This bank received huge benefits from cutting funds that have to be set to cover the unprofitable loans of energy companies. The partly recovered oil prices also helped many bank’s borrowers to pay their credits back.
Scotiabank, like many Canadian and the USA banks, received the rice of outstanding loans from the energy firms that felt the decrease of oil prices on their own businesses. This year it was 13 years low price for one barrel, and oil cost 25 dollars. However, new quarter showed the increase in the oil price by almost 30 percent. So this industry partly recovered.
CEO of the bank, Brian Porter, said that the main their problem was the sector of energy which gave them the main decline. That is why they lowered official expectations. Right now, when the situation looks better Scotiabank is ready to give more loans, as the bank’s income is 1.96 billion Canadian dollars. Previously it was 1.85 billion Canadian dollars.