The Globe and Mail reports in its Wednesday edition that Bank of Nova Scotia posted lower fourth-quarter profit that missed analysts' estimates as a spike in loan loss reserves and expenses dragged on results even as the bank slashed costs. The Globe's Stefanie Marotta writes that Scotiabank dramatically increased its provisions for loans that could default as the high cost of borrowing threatens to derail homeowners who have mortgages coming up for renewal in the next few years. The bank has been focused on reining in mounting expenses and building its deposit base as it prepares to unveil its new strategic plan in December under new boss Scott Thomson. In the quarter ended Oct. 31, Scotiabank set aside $1.3-billion in provisions for credit losses. That was higher than analysts expected, and included $454-million for loans that are still being repaid but which may default, according to models that use economic forecasting to predict future losses. In the same quarter last year, Scotia had a set aside of $529-millions in provisions. While overall delinquencies are still within the range of historical levels, chief risk officer Phil Thomas said that consumer health in Canada is weakening, and defaults are edging higher.