Scotiabank Surpasses Expectations with Stellar Q3 Earnings Boosted by Global Banking Profits
Scotiabank Surpasses Analysts’ Expectations with Strong Q3 Earnings
August 26, 2025 | By Naimul Karim
Scotiabank (Bank of Nova Scotia) posted strong financial numbers for the third quarter ending July 31, 2025. The bank beat analyst predictions by raising profits in its global banking and markets divisions. The report shows revenue growth even as economic risks continue, especially from tariffs that affect Canadian trade.
Strong Net Income and Earnings Per Share
Scotiabank earned $2.53 billion. Last year in the same quarter, the number was $1.9 billion. This change gave a net earnings per share (EPS) of $1.84. When unusual items are removed, net income was $2.52 billion. That means adjusted EPS came to $1.88 per share. These figures beat the analyst estimate of about $1.73. CEO Scott Thomson praised the results. He tied the “very strong quarter” to rising revenue in all parts of the bank.
Decrease in Provisions for Credit Losses
Investors watch provisions for credit losses (PCLs) because they signal potential loan defaults and economic issues. In this quarter, total PCLs dropped to about $1 billion. This is $11 million less than Q3 last year and $357 million less than Q2 2025. PCLs for high-risk loans fell to $975 million in Q3 from $1.05 billion in the previous quarter. This drop mainly came from lower figures in the Canadian retail and corporate loan areas.
Segment Performance and Dividend Increase
The international banking division reported adjusted earnings of $716 million, a 7% rise over last year. In contrast, Canadian banking earnings fell 2% to $959 million compared to the previous year. Yet, they improved 56% from the prior quarter.
With its strong financial show, Scotiabank raised its quarterly dividend to $1.10 per share, up from $1.06. ### Market Context
Scotiabank is one of Canada’s Big Six banks and shows the health of the national economy. The Q3 results come at a time when trade tensions worry Canadian businesses. Analysts study the bank’s credit loss provisions to see if households and companies face stress.
Looking Ahead
The better-than-expected profits and improved credit outlook show that the bank stays strong at its core. Investors will keep an eye on global economic factors, like trade and overall trends, that may affect Scotiabank in the coming quarters.
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Contact:
Naimul Karim
Email: nkarim@postmedia.com
This article is based on reporting by Financial Post and is authorized for publication with credit.
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