Scotiabank announced an increase in the rate of delinquent mortgages, with the percentage of loans overdue by more than 90 days rising to 0.11%, compared to 0.09% in the previous quarter, but it remains lower than the rate of 0.12% recorded during the same period last year. This comes amid a slowdown in the mortgage market due to rising interest rates that have affected the ability of some borrowers to repay.

Nonetheless, the bank remains optimistic about its ability to refinance mortgages, indicating that many clients have managed to adapt to challenges by increasing their savings or working hours. The bank explained that 37% of its mortgage portfolio consists of loans with variable interest rates, reflecting relative stability despite difficult economic conditions.

Regarding the growth of mortgages, the bank witnessed a 7% increase compared to last year, but this is lower than the previous growth rate of 15%. The bank stated that its future plan includes diversifying revenue sources and reducing reliance on mortgage and auto loans to increase profitability and enhance financial sustainability.