The banking giant expects to take a sizeable hit on its Q4 earnings as a result
Banking giant Scotiabank has announced its intention to reduce its global workforce by around 3%, a decision it said was driven by changes to customers’ day-to-day banking preferences, efforts to streamline processes, and growing digitization and automation.
The bank said the changes would contribute to a hit of around $590 million after tax to its fourth-quarter earnings, with a planned writedown of an investment in Bank of Xi’an, a Chinese financial institution, also accounted for in that figure.
Severance provisions and a restructuring charge as a result of those workforce cuts will make up around $247 million of Q4 losses, Scotiabank said, while costs of $63 million will accrue as a result of the consolidation and exit of certain real estate premises and service contracts.
Bank of Xi’an’s market value has remained below Scotiabank’s carrying value “for a prolonged period,” according to the news release, resulting in impairment charges of $280 million.
Scotiabank said it would be providing further details upon the release of its Q4 earnings, scheduled for November 28 of this year.
