The Big Five bank reported that its fourth-quarter net income fell 34 per cent to roughly $1.4 billion, as it allocated more funds toward loan-loss reserves than anticipated. Scotiabank’s provisions for credit losses totalled $1.26 billion, an increase of $727 million from the same period a year ago. Its shares closed down more than four per cent on the Toronto Stock Exchange. (The Logic)

Talking point: “It’s important to note that while delinquencies are still within historical norms, consumer health in Canada continues to weaken and we expect households may continue to experience financial pressure through 2024,” Phil Thomas, Scotiabank’s chief risk officer, told analysts on the company’s earnings call, adding that delinquencies are trending upward across all products in Canada. Scott Thomson, Scotiabank’s new CEO who took the helm in February, said he plans to unveil the bank’s new strategy at its investor day in two weeks. Thomson has sought to cut costs. The bank laid off three per cent of its global workforce in October.