- Scotiabank reported a Q3 profit of C$2.53 billion, up from C$1.91 billion last year, driven by higher interest income and easing trade tensions
- Adjusted earnings of C$1.88 per share beat analyst expectations of C$1.73, with revenue rising to C$9.49 billion from C$8.36 billion
- Loan loss provisions came in lower than expected, and international, wealth management, and global banking divisions all posted year-over-year profit growth
- Scotiabank stock (TSX:BNS) last traded at C$79.53 and BMO stock (TSX:BMO) last traded at C$157.78
Bank of Nova Scotia, aka Scotiabank (TSX:BNS), one of Canada’s leading financial institutions, reported a notable rise in third-quarter earnings, driven by higher interest income and easing trade tensions between Canada and the United States.
This content has been prepared as part of a partnership with Scotiabank and Bank of Montreal, and is intended for informational purposes only.
For the quarter ended July 31, Scotiabank posted a net income of C$2.53 billion, up from C$1.91 billion a year earlier. Diluted earnings per share rose to C$1.84 from C$1.41. On an adjusted basis, the bank earned C$1.88 per share, surpassing analysts’ average estimate of C$1.73, according to LSEG data and analytics.
Revenue climbed to C$9.49 billion, compared to C$8.36 billion in the same quarter last year. The bank’s provision for credit losses slightly decreased to C$1.04 billion, below the expected C$1.19 billion, reflecting improved credit conditions.
“We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year,” Scott Thomson, Scotiabank’s president and chief executive officer said in a news release. “We did this all while maintaining a strong balance sheet and buying back shares.”
Scotiabank’s international banking division saw a year-over-year profit increase to C$670 million, while its global wealth management and global banking & markets segments also posted gains, earning C$417 million and C$473 million respectively. However, its Canadian banking unit reported a slight dip in profit to C$958 million, impacted by higher non-interest expenses and credit loss provisions.
The bank’s “other” segment narrowed its losses significantly, reporting a net loss of C$71 million compared to C$465 million a year ago.
Scotiabank’s performance comes alongside Bank of Montreal (TSX:BMO), which also beat earnings expectations. BMO reported adjusted earnings of C$3.23 per share, exceeding the forecast of C$2.95, and announced a new 30 million share buyback program.
Both banks benefited from lower-than-expected loan loss provisions, a sign of resilience amid previous concerns over trade tensions and high interest rates. With significant exposure to international markets, including the U.S., Mexico, and South America, Scotiabank continues to leverage global diversification to drive growth.
With assets of C$1.4 trillion as of April 3025, Scotiabank is one of the largest banks in North America by assets.
BMO is the eighth-largest bank in North America by assets and been operating for more than 200 years.
Scotiabank stock (TSX:BNS) last traded at C$79.53 (up 3.03 per cent since January) and BMO stock (TSX:BMO) last traded at C$157.78. (up 13.06 per cent since January).
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