Scotiabank has reported a strong performance for its first-quarter earnings, surpassing analysts’ expectations. The Bank of Nova Scotia, listed as BNS-T, earned $2.29 billion, translating to $1.73 per share, for the quarter that ended on January 31. This marks a significant increase from last year’s profit of $993 million, or $0.66 per share. The previous year included a substantial impairment loss of $1.36 billion from the divestiture of banking operations in Colombia, Costa Rica, and Panama.
Fiscal First Quarter Highlights
Excluding specific items, the bank reported an adjusted profit of $2.05 per share, outperforming the anticipated $1.95 per share, as noted by S&P Capital IQ’s analysis.
Earnings Growth Across Divisions
- All business lines experienced earnings growth in this quarter.
- Canadian banking profits reached $960 million, a 5% increase, driven by higher net interest income.
- International banking profit grew by 10% to $717 million, aided by lower expenses.
- Global wealth management division profits rose by 18% to $481 million due to increased mutual fund fees.
- Capital markets profit increased by 5%, reaching $545 million.
Credit Loss Provisions and Revenue
Scotiabank allocated $1.18 billion in provisions for credit losses this quarter. This figure slightly exceeded provisions from the previous year and included $73 million related to loans that are currently being repaid.
During this quarter, total revenues increased by 3% to reach $9.65 billion, while expenses declined by 18%, totaling $5.29 billion.
Conclusion and Future Outlook
Scott Thomson, the CEO of Scotiabank, highlighted the continued growth across all business divisions, emphasizing the positive financial momentum despite challenges like sluggish loan growth and tariffs. As the first major Canadian bank to disclose its earnings for the fiscal first quarter, Scotiabank sets a benchmark for upcoming financial reports from competitors, including Bank of Montreal and National Bank of Canada, expected later this week.
