TORONTO, Oct. 18,
2023 /CNW/ - Scotiabank today announced that its
fourth quarter 2023 reported results will be adjusted for certain
notable items. The impact on the Bank's fourth quarter results will
be approximately $590 million
after-tax ($783 million pre-tax), or
approximately $0.49 cents per share.
The impact on the Bank's CET1 ratio is approximately 10 bps.
- A restructuring charge and severance provisions of
approximately $247 million
($341 million pre-tax) related to
workforce reductions of approximately 3% globally, as a result of
the Bank's end-to-end digitization, automation, and changes in
customers' day-to-day banking preferences, as well as ongoing
efforts to streamline operational processes and create capacity to
invest in key growth opportunities.
- Consolidation of real estate and contract costs of
$63 million ($87 million pre-tax) related to the consolidation
and exit of certain real estate premises and service
contracts.
We expect the savings on the above items to be achieved
throughout fiscal 2024 and anticipate full run-rate benefits in
fiscal 2025.
- Impairment charges of $280
million ($355 million pre-tax)
related to the Bank's investment in associate corporation, Bank of
Xi'an Co. Ltd., whose market value has remained below the Bank's
carrying value for a prolonged period, as well as impairment of
certain intangible assets including software.
Further details will be provided with the release of the Bank's
fourth quarter earnings on November 28,
2023.
About Scotiabank
Scotiabank is a leading bank in the Americas. Guided by our
purpose: "for every future", we help our customers, their families
and their communities achieve success through a broad range of
advice, products and services, including personal and commercial
banking, wealth management and private banking, corporate and
investment banking, and capital markets. With a team of over 90,000
employees and assets of approximately $1.4 trillion (as
at July 31, 2023), Scotiabank trades on the Toronto Stock
Exchange (TSX: BNS) and New York Stock Exchange (NYSE: BNS). For
more information, please
visit http://www.scotiabank.com and follow us on
X @Scotiabank.
SOURCE Scotiabank