Scotiabank (TSX:BNS) delivered a solid first-quarter performance, buoyed by strength in its capital markets division and improving credit quality.
The bank reported quarterly earnings per share (EPS) of C$1.76, ahead of Jefferies’ prior estimate of C$1.65.
Revenue projections were also lifted, with 2025 now expected to rise 3% from previous forecasts.
Despite the positive earnings momentum, Jefferies highlighted that Scotiabank faces a potential headwind in the form of US tariffs, given its significant exposure to Canada and Mexico.
While the impact is seen as a near-term rather than immediate risk, the firm continues to apply a lower valuation multiple, trimming its price target on BNS by C$1 to C$76.