{"id":320565,"date":"2025-12-02T13:21:07","date_gmt":"2025-12-02T13:21:07","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/320565\/"},"modified":"2025-12-02T13:21:07","modified_gmt":"2025-12-02T13:21:07","slug":"scotiabank-beats-profit-estimates-on-capital-markets-wealth-management-strength","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/320565\/","title":{"rendered":"Scotiabank beats profit estimates on capital markets, wealth management strength"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Scotiabank reported fourth-quarter earnings of $2.2-billion, or $1.65 per share, on Monday.Chris Wattie\/Reuters<\/p>\n

Bank of Nova Scotia BNS-T<\/a> reported higher fourth-quarter profit that beat analysts\u2019 estimates as activity in capital markets and wealth management surged, offsetting a restructuring charge aimed at cutting costs.<\/p>\n

Scotiabank earned $2.2-billion, or $1.65 per share, in the three months ended Oct.31. That compared with $1.69-billion, or $1.22 per share, in the same quarter last year. <\/p>\n

Adjusted to exclude certain items, including a restructuring charge and severance provisions, the bank said it earned $1.93 per share. That edged out the $1.84 per share analysts expected, according to data from S&P Capital IQ. <\/p>\n

\u201cWe delivered improving results through the year as we strengthened our balance sheet, improved our loan-to-deposit ratio, and increased return on equity,\u201d Scotiabank chief executive officer Scott Thomson said in a statement. <\/p>\n

The bank kept its quarterly dividend unchanged at $1.10 per share. <\/p>\n

Scotiabank is the first major bank to release earnings for the three months ended Oct. 31. Royal Bank of Canada RY-T<\/a> and National Bank of Canada NA-T<\/a> will report results on Wednesday. Toronto-Dominion Bank TD-T<\/a>, Bank of Montreal BMO-T<\/a>, and Canadian Imperial Bank of Commerce CM-T<\/a> will wrap up earnings week on Thursday. <\/p>\n

In the quarter, Scotiabank set aside $1.1-billion in provisions for credit losses \u2013 the funds banks set aside to cover loans that may default \u2013 and included $71-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses. <\/p>\n

In the same quarter last year, Scotiabank set aside $1.03-billion in provisions. <\/p>\n

Total revenue rose 15 per cent in the quarter to $9.8-billion. But expenses increased 10 per cent to $5.8-billion, which the bank said was driven by higher personnel costs, technology and business development. <\/p>\n

Profit from Canadian banking was $941-million, up 1 per cent from a year earlier, driven by higher private equity gains, mutual fund distribution fees and insurance income. Loan balances were up 2 per cent year over year. <\/p>\n

Profit from the bank\u2019s international division was up 6 per cent to $634-million. <\/p>\n

The global wealth management division generated $447-million of profit, up 18 per cent. And capital markets profit jumped 50 per cent to $519-million on stronger activity in the United States. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Scotiabank reported fourth-quarter earnings of $2.2-billion, or $1.65 per share, on Monday.Chris Wattie\/Reuters…\n","protected":false},"author":2,"featured_media":218499,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[142392,142388,45,49,48,142393,142390,142389,142391],"class_list":["post-320565","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bmo-t","tag-bns-t","tag-business","tag-ca","tag-canada","tag-cm-t","tag-na-t","tag-ry-t","tag-td-t"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/320565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=320565"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/320565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/218499"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=320565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=320565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=320565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}