National Bank of Canada, Scotiabank surpass forecast despite profit decline

The National Bank of Canada and Scotiabank reported acceptable second-quarter results on Tuesday. Both banks surpassed analysts’ estimates even though their respective profits suffered from loan-loss provisions due to the novel coronavirus crisis.

The National Bank of Canada reported a 32% drop in profit in the three months ended April 30. The decline followed as the funds allocated to future loan losses hiked to $365.59 million year-on-year. Its earnings per share stood at C$1.01, surpassing the 91 cents forecasted by analysts.

Canadian banks are expecting sharper loan declines this year which may continue until 2021 as the possibility of recession remains to be the primary issue.

Scotiabank also surpassed forecast even though it previously reported a 45% year-on-year drop in profit. The decline sent the bank’s shares up by 7.2% to C$55.84.  The figure came to be the strongest record in two months.