Bank of Nova Scotia (TSX:BNS) (Scotiabank) announced on Tuesday third-quarter 2025 financial results that exceeded expectations, as Canada’s fourth-largest bank put aside less money for loan-loss provisions.
Scotiabank reported adjusted earnings of C$1.88 per share for the period, surpassing the average analyst estimate of C$1.73, based on data compiled by LSEG.
The bank also recorded C$1.04 billion for loan-loss provisions. Analysts were expecting Scotiabank to set aside C$1.19 billion.
RBC Capital Markets analyst Darko Mihelic called results at Scotiabank's Canadian and international banking segments “strong,” Reuters reported.
The media outlet noted that Canadian banks have boosted loan loss provisions for the past few quarters, citing potential mortgage and credit card defaults in a high-interest rate environment, along with reduced lending due to trade tensions.
Scotiabank’s revenue was C$9.49 billion for the quarter, up from C$8.36 billion during the same period last year.
Shares of Scotiabank added 5.4% just shy of C$84 following its report. Its US-listed stock added 5.6% at US$60.50.