The Canadian Press/Adrien Veczan

COVID-19 roundup: Bay Street’s difficult earnings season begins

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It’s day 77 since Canada’s 100th coronavirus case. The number of cases is 86,614 as of publication time, up 903 since yesterday—a 15 per cent decrease from the seven-day prior average of new cases. On their respective 77th day, U.S. daily new cases were down one per cent from the seven-day prior average; the U.K. was down 23 per cent in daily new cases from the seven-day prior; and in Italy, new cases were down 22 per cent.*

Bay Street blues: On the first day of what’s expected to be a difficult earnings season for Canadian financial institutions, Scotiabank reported a 41 per cent year-over-year profit drop to $1.13 billion in its fiscal second quarter, while the Canada Pension Plan Investment Board posted a 3.1 per cent return for its fiscal year, its worst performance since the last recession.   

Scotiabank’s adjusted net income from its Canadian and international banking businesses dropped 42 per cent and 73 per cent, respectively, as it set aside an extra $984 million to cover loan losses over the quarter, which runs from February to April. Still, earnings beat analyst expectations. Domestic deposit volumes grew, while the company’s global wealth management division posted a four per cent adjusted earnings increase and “outperformed market benchmarks and industry peers.”

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