The Globe and Mail reports in its Wednesday edition that Scotiabank has increased provisions for loan defaults as the U.S. trade war puts pressure on consumers and businesses. The Globe's Stefanie Marotta writes the bank posted lower second-quarter profit that missed analysts' estimates after it set aside higher loan loss reserves for rising risk among Canadian consumers and businesses. In the quarter, Scotiabank set aside $1.4-billion in provisions for credit losses. That was higher than analysts expected and an increase from the $1-billion in provisions it booked in the same quarter last year. The bulk of the increase came from $346-million for performing loans. In the first quarter this year, Scotiabank had set aside $98-million for performing loans. The provisions were earmarked for potential losses across Scotia's Canadian retail business and commercial loans in industries with greater exposure to higher tariffs than other sectors, including auto, agriculture and manufacturing. The bank also posted higher provisions for performing loans in its Mexico division as the country's economy is expected to weaken. Aside from increasing allowances on performing loans, Jefferies analyst John Aiken called the results "solid."