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Jan 31, 2025
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Scotiabank Q1 2025 Earnings Report
Scotiabank reported a strong quarter with adjusted earnings growth despite challenges in its international segment.
Key Takeaways
Scotiabank reported adjusted net income of $2.362 billion and adjusted diluted EPS of $1.76. Revenue grew to $9.372 billion, driven by higher net interest income and non-interest income. The bank faced higher provisions for credit losses and non-interest expenses, but strong performance in Global Banking and Markets offset some pressures.
Adjusted net income increased to $2.362 billion from $2.212 billion last year.
Adjusted diluted EPS rose to $1.76 from $1.69 a year ago.
Revenue increased to $9.372 billion, up from $8.433 billion.
Provision for credit losses rose to $1.162 billion, up from $962 million last year.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Scotiabank remains focused on strengthening its North American business while simplifying its international banking portfolio. The bank anticipates revenue growth but expects continued credit loss provisions due to macroeconomic headwinds.
Positive Outlook
- Strong capital position with CET1 ratio at 12.9%.
- Robust performance in Global Banking & Markets.
- Revenue growth across key segments.
- Continued focus on operational efficiency and expense management.
- Strategic divestitures to optimize international operations.
Challenges Ahead
- Higher provisions for credit losses impacting profitability.
- Increased operating expenses due to restructuring and impairments.
- Pressure on international banking earnings.
- Macroeconomic uncertainties affecting lending activities.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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