UPDATE 2-Scotiabank profit lifted by ING Direct, but lower than expected

Tue May 28, 2013 11:43am EDT
 
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* Second-quarter adj profit C$1.24 versus est C$1.26

* Net income rises 9.6 pct

* ING Direct takeover boosts domestic banking unit

* Shares off 0.8 pct, only major Canada bank down Tuesday (Adds financial details, analyst comments, stock price)

By Cameron French

TORONTO, May 28 (Reuters) - Bank of Nova Scotia said on Tuesday that quarterly profit rose 9.6 percent due largely to an acquisition, but missed estimates due to weaker commodities-related revenue and higher loan-loss provisions.

At mid-morning, the bank's shares were down 0.8 percent at C$59.11 in Toronto, making it the weakest performer among Canada's six biggest lenders, which were otherwise higher.

The result, the third earnings report from a Canadian bank this quarter, was padded by last year's C$3.1 billion ($2.98 billion) acquisition of the Canadian online lender ING Direct.

That deal contributed to a 19 percent jump in profit at Scotiabank's Canadian banking unit, which earned C$547 million.   Continued...