MNI China Daily Summary: Wednesday, July 3

MNI BRIEF:BOJ Q1 Output Gap Hits 16th Negative Reading In Row

MNI: PBOC Sets Yuan Parity Higher At 7.1312 Weds; -0.34% Y/Y

MNI: PBOC Net Drains CNY248 Bln Via OMO Weds; Rates Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS WEDS

CHINA SETS YUAN CENTRAL PARITY AT 7.1312 WEDS VS 7.1291

Services PMI points to wage bills increasing operating expenses

MNI: UK JUNE FINAL SERVICES PMI 52.1 (FLASH: 51.2); MAY 52.9

MNI: EUROZONE JUNE FINAL SERVICES PMI 52.8 (FLASH: 52.6); MAY 53.2

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

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Scotiabank Results: Credit Neutral, No US CRE Surprises

FINANCIALS

Scotiabank (BNS CN) 1Q24 results (3M to 31-Jan-24) were ahead of consensus on revenues and profits. Credit metrics looked relatively good, there’s no mention of US CRE issues and exposures appear tiny. Looks a very credit neutral set of results.


  • Key credit metrics: credit losses were 50bp (vs. 47bp expected but still relatively low) and non-performers were up 6bp (to 82bp). CET1 is 12.9% (down 10bp on Oct-23) but better than the 12.4% expected. CRE is 8.7% of the book (stable) and US offices are just 0.6%.
  • Revenues rose 6% y/y (2.3% above consensus), expenses grew similarly, and credit losses were 50% higher than a year ago but 23% lower than 4Q23 and only marginally ahead of consensus. Pre-tax profit beat expectations by 3% and net profit by 12%.
  • Outlook: there’s very little on outlook including in the call slides so we expect that to be a key area of questioning later today.
Conf call is 1215 London time at: https://www.gowebcasting.com/13175
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