The Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) made some huge announcements that made headlines on all business news outlets. At a glance, this is just what was announced:

• The bank will certainly be cutting 1,500 jobs (concerning 1,000 in Canada)
• It will certainly be closing or downsizing about 120 worldwide banking branches
• It will take a $451 million pre-tax costs in the fourth quarter

The 3rd point is possibly one of the most worrisome for investors as it will most straight hurt the company’s profits for the next quarter, anticipated in December.

Allow's undergo each of the above 3 points, beginning from the bottom as well as take a look at how this would likely influence investors in the Bank of Nova Scotia.

$451 million pre-tax charges.
This charge includes every little thing - from Bank of Nova Scotia's Venezuelan assets, to its Caribbean hospitality  loan portfolio, to plain old retail loans gone bad. Analysts have lengthy questioned its move to endeavor into Latin America and the Caribbean. The announcement just appears to cement this view and increase analysts' eyebrows. So how will that play on the bank's earning's next quarter?

Well, it is believed the charges in total are anticipated to cut the bank's fourth-quarter diluted profits by $0.28 cents each share. New Chief Executive Officer Brian Porter said in a statement that he is positive that 'Our 2014 reported results will certainly be within our financial objectives for the full year.'

Mr. Porter additionally says that these campaigns will allow Bank of Nova Scotia to proceed purchasing high-growth locations of the bank as he means to create a more streamlined, effective bank.

Job cuts & downsizing.
Bank of Nova Scotia additionally said it plans to reduce 1,500 jobs and get rid of approximately 120 worldwide branches. There is no question that employees will not be kindlied about this technique. Last year, the bank reported a record $6.7 billion in net profit. So exactly how does it justify to its employees the termination of their jobs? That's an inquiry that executives still should resolve but they believe that the financial institution is anticipated to save expects to save regarding $120 million every year as a result of this restricting. However, investors will only see the complete benefits of this on the books sometime in 2016.

Bank of Nova Scotia is additionally book a restructuring stipulation of about $148 million in the next quarter, largely to cover employee severance costs.

As the days pass, there will certainly continue to be a great deal more evaluation on these news. It will be interesting to see if Bank of Nova Scotia will change its emerging markets approach, although it does not rather seems so presently. For now, it seems like this announcement is indeed likely to prove to be a positive move for the bank in the long-term.