RPT-UPDATE 1-Scotiabank third-quarter earnings beat market expectations

Tue Aug 30, 2016 6:32am EDT
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(Repeats to add UPDATE 1 tag to headline)

TORONTO Aug 30 (Reuters) - Bank of Nova Scotia reported on Tuesday third-quarter earnings that were ahead of market expectations, driven by growth in its domestic and international banking businesses.

Canada's third-biggest lender reported earnings per share of C$1.55, up from C$1.46 the year before. Analysts had on average expected earnings of C$1.48 per share, according to Thomson Reuters I/B/E/S.

The bank benefited from a decline in funds set aside to cover bad loans to energy companies, with a partial recovery in the price of oil helping borrowers pay back loans.

Its provision for credit losses declined by C$181 million from the last quarter.

"The majority of the decline related to lower losses in the energy sector, which is consistent with our previously stated expectations that energy losses had peaked during the last quarter," said Chief Executive Brian Porter.

Rivals Royal Bank of Canada, Toronto-Dominion , Bank of Montreal and Canadian Imperial Bank of Commerce all reported results that beat market expectations last week. (Reporting by Matt Scuffham; Editing by Mark Potter)