(Bloomberg) -- Bank of Nova Scotia missed estimates as expenses came in higher than analysts expected and the lender took a one-time impairment charge related to an investment in a Chinese bank. 

The Toronto-based lender earned C$1.57 per share on an adjusted basis in its fiscal fourth quarter, according to a statement Tuesday, less than the C$1.60 average estimate of analysts in a Bloomberg survey. Results included impairment charges of C$379 million ($270 million) related to an investment in Bank of Xi’an Co. in China, as well as severance provisions of C$38 million.

Non-interest expenses totaled C$5.3 billion for the three months through the end of October, more than the C$4.85 billion average estimate of four analysts in a Bloomberg survey. 

Scotiabank has worked to slash costs in its international division over the past year as it looks to improve productivity in the region, which includes operations in Mexico, Peru, Chile, Colombia and the Caribbean. The bank is also trying to rein in expenses in its domestic business. 

Provisions for credit losses totaled C$1.03 billion, less than the C$1.06 billion analysts had forecast. 

Credit conditions are continuing to deteriorate as some consumers and businesses struggle to pay down debt, but a series of central-bank interest-rate cuts has helped ease some investor concern about bad loans.

The Canadian lender announced a deal in August to acquire almost 15% of Cleveland-based KeyCorp for $2.8 billion, saying the investment is part of a move to shift more of its capital from Latin America to the US. It completed the purchase of the first 4.9% of KeyCorp shares at the end of August and plans to close the remainder of the acquisition in the 2025 fiscal year. 

That deal is part of Chief Executive Officer Scott Thomson’s strategy to lift shareholder returns, which underperformed those for most Scotiabank peers over the past five years but started to gain momentum this year.

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