The Bank of Nova Scotia (BNS) Q2 2025 earnings summary

Executive summary

• Q2 2025 adjusted net income was CAD 2.1 billion ($2,072 million), down 2% year-over-year, with diluted EPS of $1.52 and return on equity at 10.4%, reflecting higher credit loss provisions due to macroeconomic uncertainty and U.S. tariffs.

• CET1 capital ratio was 13.2%, up 30 bps quarter-over-quarter, and a quarterly dividend of $1.10 per share was declared, up 4%, alongside a share buyback program for up to 20 million shares.

• Positive operating leverage was delivered for the fifth consecutive quarter, with continued investment in AI, digital capabilities, and strategic client relationships.

• Net income attributable to common shareholders was $1,841 million, down from $1,943 million year-over-year.

Financial highlights

• Total revenue for Q2 2025 was $9,080 million, up 9% year-over-year, with net interest income up 12% to $5,270 million and non-interest income up 5%.

• Pre-tax pre-provision profit increased 10% year-over-year to $3.97 billion.

• Provision for credit losses was $1,398 million, with a PCL ratio of 75 bps, up from 54 bps year-over-year.

• Non-interest expenses rose 8% year-over-year to $5,110 million, mainly due to higher technology, personnel, and compensation costs.

• Productivity ratio improved to 55.7%, up 50 bps year-over-year.

Outlook and guidance

• EPS growth of 5-7% is expected for fiscal 2025, with double-digit EPS growth anticipated in 2026 and a medium-term ROE target above 14%.

• Management remains focused on executing the strategic plan, positive operating leverage, and supporting clients amid ongoing economic uncertainty and U.S. tariff risks.

• NIM expansion is expected to stabilize by year-end, with further margin benefits from mortgage renewals in 2026.