Scotiabank Q3 earnings beat on strong interest income, lower credit loss provision

[Scotiabank head office in Toronto.]
JHVEPhoto/iStock Editorial via Getty Images

Bank of Nova Scotia (NYSE:BNS [https://seekingalpha.com/symbol/BNS]) on Tuesday posted fiscal third-quarter earnings that topped Wall Street expectations, as improved revenue growth "helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year," said President and CEO Scott Thomson.

BNS shares climbed 5.1% minutes after the opening bell in the U.S.

Q3 adjusted EPS [https://seekingalpha.com/pr/20211051-scotiabank-reports-third-quarter-results] of C$1.88 (US$1.36), surpassing the C$1.73 average analyst estimate, rose from C$1.52 in the earlier three-month period and C$1.63 a year ago.

Net interest income accelerated to C$5.49B for the quarter ended July 31, 2025 (vs. C$5.41B Visible Alpha consensus), from C$5.27B in the quarter ended April 30, 2025, and C$4.86B in the three months ended July 31, 2024.

Noninterest income was C$3.99B (vs. C$3.91B Visible Alpha estimate), up from C$3.81B in Q2 and C$3.50B in Q3 2024. Noninterest expense slid to C$5.09B from C$5.11B in Q2 and increased from C$4.95B in the year-ago period.

Provision for credit losses fell to C$1.04B in Q3 from C$1.40B in the prior quarter and C$1.05B in last year's Q3.

Adjusted earnings, by segment:

* Canadian Banking: -2% Y/Y to C$959M.
* International Banking: +7% Y/Y to C$716M.
* Global Wealth Management: +13% Y/Y to C$427M.
* Global Banking and Markets: +29% Y/Y to C$473M.

MORE ON THE BANK OF NOVA SCOTIA

* Scotiabank Remains Too Undervalued With A 6% Yield [https://seekingalpha.com/article/4801056-scotiabank-remains-too-undervalued-with-6-percent-yield]
* Bank of Nova Scotia: Robust Asset Management To Support Its Upside [https://seekingalpha.com/article/4799591-bank-of-nova-scotia-robust-asset-management-to-support-its-upside]
* Scotiabank: Buy Now After The Dividend Boost [https://seekingalpha.com/article/4793993-scotiabank-buy-now-after-the-dividend-boost]
* Bank of Nova Scotia Non-GAAP EPS of C$1.88 beats by C$0.15, revenue of C$9.49B beats by C$190M [https://seekingalpha.com/news/4489066-bank-of-nova-scotia-non-gaap-eps-of-c188-beats-by-c015-revenue-of-c949b-beats-by-c190m]
* Canadian banks FQ3 earnings preview - Lower provisions, weak loan growth expected [https://seekingalpha.com/news/4488926-canadian-banks-fq3-earnings-preview---lower-provisions-weak-loan-growth-expected]