Bank of Nova Scotia (Scotiabank) (NYSE:BNS) shares are trading lower after the company reported worse-than-expected Q1 earnings.

What Happened: On Tuesday, Scotiabank reported its first quarter results for the period that ended Jan. 31, 2023.

Scotiabank reported quarterly earnings of $1.34 per share compared to the analyst consensus estimate of $1.49, representing a negative earnings surprise of 10.1% and a decrease of 21.2% from the same period last year. The company reported quarterly sales of $5.94 billion compared to the analyst consensus estimate of $6.06 billion, representing a 6.51% decrease from the same period last year.

Scott Thomson, President and CEO of Scotiabank, said "The Bank's performance in the first quarter of 2023 reflects both the merits of a diversified platform and also the continued relative pressure on our profitability given our funding profile.”

Bank of Nova Scotia is a global financial services provider. The bank has five business segments: Canadian banking, international banking, global wealth management, global banking and markets, and other.

According to data from Benzinga Pro, Scotiabank shares were down 5.01%, trading at $50.07 at the time of publication. The stock has a 52-week high of $74.82 and a 52-week low of $45.26.