Bank of Nova Scotia beats estimates as third quarter earnings rise 15%

Published 26/08/2025, 12:40
 Bank of Nova Scotia beats estimates as third quarter earnings rise 15%

TORONTO - Bank of Nova Scotia (NYSE:BNS) reported better-than-expected third quarter results on Tuesday, with adjusted earnings per share rising 15% YoY as the bank saw improved revenue growth and positive operating leverage.

The bank’s shares rose 0.92% in pre-market trading following the announcement.

The Canadian banking giant posted adjusted earnings of C$1.88 per share, exceeding analyst estimates of C$1.73. Revenue reached C$9.49 billion, surpassing the consensus forecast of C$9.3 billion and representing a 13.4% increase from the same quarter last year.

"I want to thank all Scotiabankers for delivering a very strong quarter as we continue to execute on our strategy," said Scott Thomson, President and CEO of Scotiabank . "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."

The bank’s adjusted return on equity improved to 12.4% from 11.3% a year ago. Global Wealth Management saw adjusted earnings increase 13% YoY to C$427 million, driven by higher mutual fund fees, brokerage revenues, and net interest income. Global Banking and Markets reported a 29% jump in earnings to C$473 million, supported by strong performance in capital markets and higher fee revenue.

International Banking generated adjusted earnings of C$716 million, up 7% YoY, benefiting from solid revenue generation and strong expense management. However, Canadian Banking’s adjusted earnings decreased slightly by 2% to C$959 million compared to the prior year.

The bank maintained a strong capital position with a Common Equity Tier 1 (CET1) capital ratio of 13.3%, an increase of approximately 10 basis points from the previous quarter.

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