19:55:12 EDT Thu 28 Mar 2024
Enter Symbol
or Name
USA
CA



Bank of Nova Scotia
Symbol BNS
Shares Issued 1,198,592,774
Close 2017-11-16 C$ 83.99
Market Cap C$ 100,669,807,088
Recent Sedar Documents

Globe says Big Six banks could face a bumpy year

2017-11-17 08:48 ET - In the News

See In the News (C-TD) Toronto-Dominion Bank

The Globe and Mail reports in its Friday edition that Canada's biggest banks will likely report bumpier quarterly profits thatnks to a new accounting standard which was adopted this month. The Globe's David Berman writes that the new standard begins with the fiscal first quarter of 2018. The new approach could rattle some nerves if you are unprepared for the results, because banks must now recognize potential loan losses, in the form of provisions, far faster than they used to. "Credit provisioning is already the most volatile line on a bank's income statement and it is now set to react earlier and more severely to changing economic conditions," Robert Sedran, an analyst at CIBC World Markets, said in a recent note. International Financial Reporting Standard 9, or IFRS 9, changes the way banks recognize loan losses. It addresses concerns that date back to the financial crisis of 2008 and 2009, which sparked the Great Recession and led to enormous losses among many global financial firms. Banks were inconsistent in the way they provisioned for credit losses. Mr. Sedran expects that banks would start provisioning for credit losses four quarters earlier, and would probably provision more.

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