A real estate consolidation and workforce reductions have hurt Scotiabank’s bottom line.
Toronto-based Scotiabank announced that its fourth-quarter results will be adjusted as a result of pre-tax costs of $87 million related to the consolidation and exit of certain real estate premises and service contracts. The bank also took a $341-million pre-tax hit related to workforce reductions of 3% globally.
The bank said its employee-reduction costs were tied to “end-to-end digitization, automation and changes in customers’ day-to-day banking preferences, as well as ongoing efforts to streamline operational processes and create capacity to invest in key growth opportunities.”
The total hit to Scotiabank’s bottom line was $590 million. Scotiabank said it also incurred $355 million in pre-tax impairment charges tied to its investment in China’s Bank of Xi’An, whose market value has remained below its carrying value for a prolonged period, and an impairment of certain intangible assets including software.
Monte Stewart serves as Content Director - Canada for Connect Commercial Real Estate.
Based in Vancouver, British Columbia, Monte provides daily news coverage of major Canadian commercial real estate markets, including Vancouver, Toronto, Montreal and Calgary. He has written about the real estate sector for various media outlets and Avison Young since the early 2000s.
In addition, he has covered sports, general news and business for several leading wire services and publications, including The Canadian Press, The Associated Press, The Calgary Herald, The Globe and Mail, Research Money, The Daily Oil Bulletin, Natural Gas World and The Toronto Star.
Monte is active in his community as a youth basketball coach and raises funds for such charitable causes as Movember.