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Highlights

  • Q3 net income increased to $2,527 million versus $1,912 million a year earlier.
  • Adjusted diluted EPS rose to $1.88, and adjusted ROE reached 12.4%.
  • Canadian Banking, International and Wealth segments delivered mixed year-over-year performance.

The Bank of Nova Scotia reported third-quarter net income of $2,527 million, up from $1,912 million in the same period a year ago, with diluted earnings per share of $1.84 compared with $1.41 a year earlier. On an adjusted basis, net income was $2,518 million and adjusted diluted EPS came in at $1.88, rising from $1.63 in the prior-year quarter. Adjusted return on equity for the quarter was 12.4%, compared with 11.3% a year earlier.

“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 Chief Executive Officer 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. We did this all while maintaining a strong balance sheet and buying back shares.”

At the business-line level, Canadian Banking recorded adjusted earnings of $959 million. That represented a 56% increase versus the prior quarter but a 2% decline compared with the same period last year; management attributed quarter-over-quarter margin expansion in part to continued emphasis on personal demand deposits.

International Banking generated adjusted earnings of $716 million, up 7% year-over-year. The company cited solid revenue generation and discipline on expenses that produced positive operating leverage in the segment, aligning with ongoing productivity initiatives.

Global Wealth Management reported adjusted earnings of $427 million, a 13% increase year-over-year. The wealth business saw higher mutual fund fees, brokerage revenues and net interest income across Canadian and international operations. Assets under management climbed to $407 billion, up 12% year-over-year.

Global Banking and Markets posted earnings of $473 million, up 29% from the prior year, supported by stronger capital markets performance and higher fee revenue.

Investors and analysts will likely focus on how improving revenue trends, productivity efforts and any continued buybacks influence future capital allocation and earnings sustainability. While the headline earnings and adjusted metrics indicate quarter-on-quarter momentum in several areas, variability across business lines underscores the importance of monitoring margin trends, credit performance and the bank’s progress on strategic cost initiatives as the fiscal year unfolds.