March 3 (Reuters) - Bank of Nova Scotia, Canada’s No. 3 lender, reported a lower-than-expected quarterly profit, hurt by higher provisions and a “softer” performance in its investment banking business.
Provisions for credit losses jumped 30 percent to C$463 million ($369.8 million) in the first quarter ended Jan. 31.
The company said on Tuesday a “softer” performance in investment banking partially offset strong revenue growth in its equities and foreign exchange businesses.
Net income rose to C$1.73 billion, or C$1.35 per share, in the first quarter, from C$1.71 billion, or C$1.32 per share, a year earlier.
On an adjusted basis, the lender earned C$1.36 per share, short of analysts’ average estimate of C$1.38, according to Thomson Reuters I/B/E/S.
Total revenue rose nearly 4 percent to C$5.86 billion.
Scotiabank increased its share buyback target to 16 million from 12 million. The buyback program will end by May 29, the bank said.
The bank also raised its quarterly dividend to 68 Canadian cents per share from 66 Canadian cents. ($1 = C$1.25) (Reporting by Sneha Banerjee in Bengaluru; Editing by Sriraj Kalluvila)