The Bank of Nova Scotia (BNS) Q3 2025 earnings summary

Executive summary

• Net income for Q3 2025 was $2,527 million, up 32% year-over-year and 24% sequentially; adjusted net income was $2,518 million, up 15% year-over-year, with adjusted diluted EPS of $1.88, up from $1.63 last year.

• Return on equity improved to 12.2% (adjusted: 12.4%), up from 9.8% (adjusted: 11.3%) a year ago.

• Pre-tax, pre-provision earnings rose 29% year-over-year (adjusted up 17%), with revenues up 13%.

• Strong performance in Global Wealth Management, International Banking, and Global Banking & Markets, with notable improvements in Canadian Banking credit performance and margin expansion.

• Share repurchases totaled 3.2 million under the 20 million share NCIB, reflecting confidence in capital generation.

Financial highlights

• Total revenue for Q3 2025 was $9,486 million, up 13% year-over-year; adjusted revenue was $9,494 million, up 12%.

• Net interest income grew 13% year-over-year to $5,493 million, with net interest margin at 2.36%, up 22 bps.

• Non-interest income increased 14% year-over-year, led by wealth management, trading, and fee revenues.

• Non-interest expenses were $5,089 million, up 3% year-over-year; adjusted non-interest expenses rose 7%.

• Provision for credit losses was $1,041 million (55 bps), flat year-over-year and down 20 bps quarter-over-quarter.

Outlook and guidance

• Management expects continued modest economic growth in Canada and the U.S. amid ongoing trade policy uncertainty and inflationary pressures.

• On track to meet medium-term financial objectives, with a focus on execution and pivoting to growth in key segments by 2026.

• Canadian Banking aims for positive operating leverage in 2025 as technology and productivity investments pay off.

• Interest rate sensitivity analysis shows a 100 bps increase would add $137 million to net interest income over 12 months.

• GDP forecasts for core markets indicate moderate growth in Canada and the US, with some volatility in Latin America.