Q1 2025 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported adjusted earnings of $2.2 billion, or $1.76 per share, with a 15% year-over-year growth in noninterest revenue.
- The bank improved its capital ratio by approximately 140 basis points since the end of 2022 and built $1.6 billion in additional allowances for credit losses.
- Global Wealth Management delivered $414 million in earnings, with assets under administration exceeding $730 billion.
- Global Banking and Markets had a strong start to the year, with earnings up 33% year over year, driven by capital markets businesses.
- The bank's productivity ratio improved to 51%, with a 4% revenue growth and disciplined 1% expense growth year over year.
- Provisions for credit losses remain elevated due to higher interest rates, inflation, and geopolitical uncertainty.
- Canadian Banking faced higher credit provisions due to portfolio migration and a cautious consumer outlook.
- The bank's CET1 capital ratio decreased by 20 basis points quarter over quarter.
- International Banking earnings were down 7% from last year, despite a 5% sequential increase.
- The potential impact of tariffs and geopolitical uncertainty poses risks to future economic growth and financial performance.
Good morning and welcome to Scotiabank's 2025 first-quarter results presentation. My name is John McCartney, and I'm Head of Investor Relations here at Scotiabank. Presenting with me this morning are Scott Thomson, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer.
Following our comments, we'll be glad to take your questions. Also present to take questions are the following Scotiabank executives: Aris Bogdaneris, Canadian Banking; Jacqui Allard from Global Wealth Management; Francisco Aristeguieta from International Banking; and Travis Machen from Global Banking and Markets.
Before we start, and on behalf of those speaking today, I will refer you to slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements.
With that, I will now turn the call over to Scott.
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