Canadian lender Scotiabank beats Q4 adjusted profit estimates on higher interest income

Bank of Nova Scotia

02/12/2025 11:43

Overview

Scotiabank Q4 adjusted net income rises 21%, beating analyst expectations

Adjusted EPS for Q4 beats consensus, showing effective operational management

Q4 revenue grows 15% yr/yr, driven by higher net interest and non-interest income

Outlook

Scotiabank did not provide specific guidance for future quarters or years in press release

Result Drivers

NET INTEREST INCOME - Higher net interest margin and loan growth contributed to a 13% increase in net interest income

NON-INTEREST INCOME - 17% increase driven by higher wealth management revenues and advisory fees

RESTRUCTURING AND STRATEGIC INITIATIVES - Restructuring charges and strategic focus on key business lines supported earnings growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
C$9.80 bln
Q4 Adjusted EPS
Beat
C$1.93
C$1.84 (14 Analysts)
Q4 EPS
C$1.65
Q4 Adjusted Net Income
Beat
C$2.56 bln
C$2.29 bln (11 Analysts)
Q4 Net Income
C$2.21 bln
Q4 Net Interest Income
C$5.59 bln
Q4 Adjusted ROE
12.50%
Q4 CET1 Capital Ratio
13.20%
Q4 Provision for credit losses
C$1.11 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy."

Wall Street's median 12-month price target for Bank of Nova Scotia is C$96.00, about 0% below its December 1 closing price of C$96.03

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nCNWjhCpQa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)