The lender reported $2.032 billion in second-quarter net income, down about three per cent from last year and 9.1 per cent lower than analysts expected, according to data compiled by S&P Global Market Intelligence. (The Logic)

Talking point: On a call with analysts, executives said economic uncertainty caused by the U.S.-led trade war is causing consumers to be more cautious about spending and borrowing, weighing on the bank’s results. However, that caution has also helped people and businesses avoid defaulting on their loans, which would be even worse for Scotiabank’s bottom line, chief risk officer Phil Thomas said. The bank is “feeling quite confident” that mortgage and car loan delinquencies have stabilized, he said. CEO Scott Thomson said he’s “optimistic the country has entered a period of relative political stability” following the federal election. In a note, National Bank analyst Gabriel Dechaine said the results were “a miss, albeit for a good reason,” as the bank set more money aside to cover possible bad loans.