If tariffs are met, as U.S. President Donald Trump once again said Monday, the bank will have to reserve more capital in the second quarter in the hopes of an expectation of border taxes to be generated for businesses and consumers.
“It will make sense, but manageable,” he said.
Even the threat of tariffs has caused borrowers to become hesitant, Thomas said.
“Whether it’s retail side, corporate side, business side, you’re seeing some stagnation right now. So that causes people to pause and think about what they’re going to do.”
The bank’s total potential non-performing loan terms at the end of the quarter were approximately $1.16 billion, up from $132 million in the previous quarter in part of its Canadian banking sector.
Thomas said if charges could happen as early as next week, Scotiarank will see a massive increase in its provisions.
Thomas said the bank had a capital buffer ratio of 15.1% at the end of last quarter, well above the regulatory minimum of 11.5%, putting it in a good place to see the risk.
Capital is high, as Scotiabank reported net income of $993 million for the quarter ended January 31, with net income of 66 cents per diluted share, down from sales per share a year ago, per share $1.68.
The results of the most recent quarter include $1.36 billion in impairment fees related to the sale of their operations in Colombia, Costa Rica and Panama.
Revenue totaled $9.37 billion, up from $8.43 billion in the same period last year.
Scotiabark said it was based on adjusted earnings per share of $1.76, up from adjusted earnings of $1.69 a year ago.
According to LSEG data and analysis, the average analyst estimate is adjusted profit per share of $1.65.
Scotiabark said its net income from its Canadian banking business was C$913 million for stockholders, down from C$973 million a year ago, while its international banking business was attributable to $651 million. For stockholders, it is less than US$713 million.
The bank’s global wealth management business earned $407 million, which can be attributed to equity holders, up from $330 million in the same period last year.
Scotiabank’s global banking and markets earned $517 million, which can be attributed to stockholders, up from $388 million a year ago.
