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Scotia Miss Puts Focus On Banks' Credit Loss Provisions

CANADA
  • The first of the Big Six to report for Q4, Scotia saw a large miss to adjusted EPS estimates at C$1.26 vs an estimated C$1.65.
  • It came as Scotia set more money aside for potentially bad loans, with total provisions of 65bps ahead of expectations, rising 23bps from Q3 and 37bps from a year ago.
  • Revenues meanwhile beat expectations, at C$8.31B vs est C$8.28B.
  • Thursday sees a heavy morning for bank earnings, with RBC, TD and CIBC all reporting for two thirds of the big six by market cap.

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