Scotiabank reduced its headcount and branch footprint in its fiscal fourth quarter while upping its investment in technology as part of its restructuring initiatives to pull back on costs. 

The Canadian bank’s headcount fell 2% year over year to 89,483 and total branches also fell 2% YoY to 2,379, according to the bank’s earnings supplement for the quarter ended Oct. 31.  

The bank incurred a $CA 258 million ($190 million) restructuring charge related to staff cuts and a $46 million charge related to the exit of real estate and service contracts, Chief Financial Officer Raj Viswanathan said during today’s earnings call.

BIGGER PICTURE: As Scotiabank reduced headcount and branches, technology investment increased, reaching $415 million in Q4, up 12% YoY and 8% sequentially, according to the earnings presentation.  

Tech spend also boosted adjusted non-interest expenses, which grew 10% YoY to $4.7 billion, according to Scotiabank’s earnings supplement. Expenses related to compensation, professional fees and advertising also contributed to overall costs. 

BY THE NUMBERS: Scotiabank reported in Q4: 

• Total revenue of $6.1 billion, up 9% YoY; 
• Digital adoption reached 61%, up from 59% during the same period last year;  
• Active mobile users grew 9% YoY to 8.1 million; and 
• Active digital users increased 5% YoY to 9.2 million. 

NOTEWORTHY: The bank appointed Aris Bogdaneris as group head of Canadian banking, according to a Nov. 2 release. 

Bogdaneris has experience addressing client needs across digital and physical channels, according to the release. 

“He has a proven track record of delivering scale and growth in retail banking, with a large focus on achieving industry-leading client satisfaction and employee engagement,” Scotiabank Chief Executive Scott Thomson said in the release. 

Bogdaneris has 25 years of experience in financial services and is expected to take Scotiabank to “the next level,” Thomson said.  

MARKET REACTION: Shares of Scotiabank [NYSE: BNS] were down 4.1% from market open to $42.53 at market close today. Scotiabank has a market capitalization of $51.10 billion. 

Editor’s note: All figures have been converted to U.S. dollars. 

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