Corporate Debt Restructuring Masterclass

18 July 2022 (Mon), 5pm Singapore/HK time

Canada’s Scotiabank reported a 12% YoY increase in net profits at C$2.74bn ($2.14bn) for its quarter ending April 2022. Net interest income was up 7% to C$4.47bn ($3.43bn), driven by a strong 13% loan growth. Net interest margin dipped 3bps YoY to 2.23%. Total expenses rose 3% YoY to C$4.15bn ($3.23bn). Provision for credit losses (PCL) fell by C$277mn ($216mn) to C$219mn ($171mn) and the PCL ratio also improved by 20bps YoY to 13bps. It saw a net reversal of C$187mn ($146mn) in performing PCLs during Q2, mainly driven by improved retail portfolio credit quality. The bank’s chief risk officer, Phil Thomas said, “The bank remains optimistic about customers’ financial health but is cognizant of the current economic challenges. PCLs have reached the floor and are expected to gradually increase during the rest of the year.” The bank’s global wealth management earnings grew 9% in Q2 driven by higher mutual fund fees, brokerage revenues, and net interest income boosted by strong loan and deposit growth. With the positive results now behind them, the bank has guided for higher expenses in the H2 noting that mortgage growth will be also slow down. The bank said that it remains well-capitalized with a CET1 ratio of 11.6%.

Scotiabank’s USD 4.9% Perp was up 0.26 points to 96.31, yielding 6.25%.

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