Scotiabank announces Q4 results will be adjusted for certain items

Scotiabank announced that its Q4 reported results will be adjusted for certain notable items. The impact on the Bank’s Q4 results will be approximately C$590M after-tax, or C$783M pre-tax, or approximately C$0.49 per share. The impact on the Bank’s CET1 ratio is approximately 10 bps. A restructuring charge and severance provisions of approximately C$247M, or C$341M 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 C$63M, or C$87M pre-tax, related to the consolidation and exit of certain real estate premises and service contracts. The company expects the savings on the above items to be achieved throughout FY24 and anticipate full run-rate benefits in FY25. Impairment charges of C$280M, or C$355M 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.