Q3 2025 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported strong Q3 results with adjusted earnings of $2.5 billion, up 15% year-over-year.
- The return on equity improved to 12.4%, an increase of 110 basis points compared to the same quarter last year.
- Global wealth management showed positive momentum with strong results in asset management, private banking, and international wealth management.
- The bank's balance sheet optimization efforts led to improved funding metrics, with the loan-to-deposit ratio improving to 104% in Q3 2025.
- The bank's CET1 capital ratio increased to 13.3%, highlighting strong capital levels and disciplined capital allocation.
- Canadian banking reported earnings were down 2% year-over-year, indicating challenges in this segment.
- The provision for credit losses was approximately $1 billion, with a PCL ratio of 55 basis points, reflecting ongoing credit risk concerns.
- The bank's effective tax rate increased to 25% from 18.6% last year, impacting overall profitability.
- International banking faced challenges with credit trends in Mexico, indicating regional economic uncertainties.
- The Canadian consumer is showing signs of stress, particularly among younger clients, which could impact future credit performance.
Good morning and welcome to Scotiabank's Q3 results presentation. My name is Meny Grauman and I am Head of IR 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 our comments, we will 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.
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