Scotiabank's (TSX: BNS) fourth-quarter net income fell 14% from last year to $1.438 billion as it recognized severance expenses for a downsizing and other items that the bank announced last month.
The net income amounted to $1.10 per share, down from $1.676 billion. Excluding the restructuring and certain other items, Scotiabank's net income was $1.703 billion — up 2% from last year. The adjusted earnings per share were $1.11 — short of analyst estimates of $1.40 per share, according to data compiled by Thomson Reuters. Net income, before adjustments, was $1.29 per share — also short of estimates.Total revenue during the quarter ended Oct. 31 was $5.747 billion, up from $5.4 billion a year earlier but less than the estimate of $5.8 billion.
The quarter included a restructuring charge totaling $110 million after tax, mostly relating to employee severance as Scotiabank moves to increase efficiency in its domestic operations and reduce the number of branches it has outside Canada.
The bank announced Nov. 4 that it planned to cut 1,500 jobs worldwide — about two-thirds of them in Canada. Its international arm will shut 120 locations but none of the Canadian branches is set to close.
Despite the decline in fourth-quarter profit, Scotiabank's full-year profit for 2014 was up 10% from last year, rising to $7.298 billion and the bank's dividend remains unchanged at 66 cents per common share.
Scotiabank shares open Friday trading at $66.96, down 62 cents from Thursday's close, within a 52-week range of $59.92 to $74.93.
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