Christine Dobby
((Bloomberg) – Nova Scotia Bank is the focus of investors operating through turnover programs, with higher overall revenue after its Canadian banking sector released strong performance.
According to a statement Tuesday, Toronto-based lender earned $1.88 per share on its third-quarter adjustment, higher than the average analyst estimate of $1.73. The net income of its domestic banking units totaled $959 million in the three months to July, much better than the average forecasts of the two analysts in the Bloomberg survey.
“We report higher revenue growth, which helped drive positive operating leverage in the other quarter and boosted our higher return on equity,” CEO Scott Thomson said in a statement.
According to analysts, the company’s Canadian banking business lags behind its peers and improves performance, a key part of the plan to drive new earnings growth. The company struggled with slow growth in commercial loans and credit card loans, while deposit growth was not enough.
According to the credit, Scotiabank’s prescribed potential losses of $1.04 billion, less than $1.17 billion analysts predict.
Thomson, who became CEO in 2023, is pushing Scotiabank to increase its share in the Canadian retail banking and wealth management market and prioritizes capital expenditures at home, followed by the United States and Mexico, which are leading in other international markets.
The bank is working to improve the quality of its credit and is standing out from its loan relationship with less friendly clients.
Investors seem to be unconvincing, with Scotiabank’s stock price up 3% so far this year, while the S&P/TSX banking index increased by 14%.
The bank’s domestic and Mexican operations have been hit hard by U.S. tariffs this year, while operations in other parts of Latin America, including Chile and Peru, have less disturbances to the trade war and have less impact on credit.
©2025 Bloomberg LP
Visited once today, visited once today
Big Banks Income Big Banks Bloomberg Quarterly Earnings Scotiabank Scotiabank Quarterly Earnings Scott Thomson
Last modified: August 26, 2025
