Scotiabank, officially known as The Bank of Nova Scotia, is one of Canada’s largest financial institutions with approximately $1.4 trillion in assets. Its services include personal and commercial banking, wealth management, and investment banking. In the second quarter of fiscal 2025, Scotiabank’s financial performance reflected ongoing challenges amid economic uncertainty, which has affected various aspects of its operations.

For the quarter, Scotiabank reported adjusted earnings of $2.1 billion, or $1.52 per share, a decrease from $2.1 billion and $1.58 per share in the same quarter last year. The bank’s return on equity (ROE) was 10.4%, down from 11.3% year-over-year. The drop in earnings was primarily influenced by an increase in provisions for credit losses, which totaled approximately $1.4 billion, significantly impacting profitability.

Net interest income grew to $5.27 billion, a 12% year-over-year increase due to improved loan growth and expanded net interest margins, which rose 14 basis points from the previous year. Total revenue reached $9.08 billion, rising from $8.35 billion the previous year, but the bank’s provision for credit losses increased by 39% due to heightened allowances for expected credit quality deterioration, particularly in Canadian retail portfolios.

Expenses increased to $5.11 billion, primarily due to higher technology costs and personnel compensation. Despite these challenges, Scotiabank maintained a disciplined approach to capital management, achieving a Common Equity Tier 1 (CET1) capital ratio of 13.2%, up 30 basis points from the prior quarter.

In specific segments, Canadian Banking reported earnings of $613 million, down 31% year-over-year, while International Banking earnings grew to $681 million, up 6%. Global Wealth Management achieved earnings of $405 million, a 17% increase, and Global Banking and Markets reported earnings of $413 million, up 10% compared to the previous year.

Additionally, the bank announced a quarterly dividend increase to $1.10 per share, reflecting a 4% rise, and initiated a share buyback program of up to 20 million shares, demonstrating continued confidence in the bank’s capital position. Overall, Scotiabank’s performance indicates a stable but cautious operational stance, with ongoing adjustments to mitigate risks amid an uncertain macroeconomic landscape.