Bank of Nova Scotia
beat analysts’ fourth-quarter expectations after posting higher profits in its global banking and markets segment on Tuesday.
The bank also said it recorded a “restructuring charge and severance provisions” as well as other related charges worth $373 million primarily due to workforce reductions across its global operations.
“These amounts reflect actions taken by the bank to simplify its organizational structure in Canadian Banking, restructure and right-size Asia operations in Global Banking and Markets and regionalize activities across its international footprint,” the bank said in a statement on Tuesday.
Scotiabank’s net income for the three months ending Oct. 31 was $2.2 billion, compared to $1.7 billion during the same period a year ago, resulting in net earnings per share of $1.65.
The lender’s adjusted net income — which removes the impact of non-recurring items — was $2.6 billion, compared to $2.2 billion a year ago, resulting in adjusted earnings per share of $1.93, which was above analysts’ expectations of about $1.85 per share.
For fiscal year 2025, Scotiabank reported net income of $7.76 billion compared to $7.9 billion last year, resulting in earnings per share of $5.67. Its annual adjusted net income was $9.5 billion compared to $8.63 last year, or earnings per share of $7.09.
“We delivered improving results through the year as we strengthened our balance sheet,” chief executive Scott Thomson said in a statement on Tuesday. “This quarter, all our business lines reported year-over-year earnings growth with particular strength in Global Wealth Management and Global Banking and Markets and improving results in Canadian Banking.”
Scotiabank’s earnings in its Canadian Banking segment increased one per cent year over year to $942 million, while its international banking segment generated earnings of $638 million, up five per cent.
Its Global Wealth Management and Global Banking and Markets segments grew by 17 per cent and 50 per cent, respectively, due to strong revenue from higher mutual fund fees, brokerage revenues, capital markets and business banking.
“We are making clear progress towards achieving our key priorities, including being disciplined in our capital allocation, prioritizing value over volume, earning primary clients and seeking out ways to work better, faster, safer and at a lower cost,” Thomson said.
Provisions for credit losses, or the amount of money the bank keeps aside for potentially bad loans, increased to $1.11 billion in the fourth quarter, compared to $1.03 billion a year ago and $1.04 billion in the third quarter.
• Email: nkarim@postmedia.com
Scotiabank beats earnings estimates despite restructuring and severance costs
2025-12-02 12:31:33
