Q2 2025 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) delivered adjusted earnings of $2.1 billion or $1.52 per share, showcasing strong financial performance despite global economic uncertainty.
- The bank's CET1 ratio improved to 13.2%, up 30 basis points quarter-over-quarter, indicating a strong capital position.
- Global Wealth Management earnings increased by 17% year-over-year, driven by growth in asset management and advisory businesses.
- BNS announced a quarterly dividend increase by $0.04 to $1.10 per share and launched a share buyback program for 20 million shares, reflecting confidence in capital generation.
- The bank demonstrated strong expense discipline in International Banking, contributing to improved return on equity and lower impaired loan loss provisions.
- The provision for credit losses increased to approximately $1.4 billion, with a PCL ratio of 75 basis points, primarily due to higher performing loan provisions.
- Canadian Banking reported a 31% year-over-year decline in earnings, impacted by significant performing PCLs.
- Net interest margin in Canadian Banking declined by 4 basis points quarter-over-quarter and 14 basis points year-over-year due to deposit margin compression.
- The bank's return on equity was 10.4%, down 90 basis points year-over-year, primarily driven by higher performing PCLs.
- The outlook for loan growth remains cautious due to weaker consumer and business confidence, impacting near-term growth prospects.
Good morning. Welcome to Scotiabank's 2025 Q2 results call. My name is Meny Grauman. I'm Head of Investor Relations here at Scotiabank. Presenting to you 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 their comments, we'll be glad to take your questions.
Also present to take questions are the following Scotiabank executives: Aris Bogdaneris from 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.
Thank you, Meny, and good morning,
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