AUS
NZ
UK
CA
USA
IND
Highlights
- Reported net income of $993 million impacted by $1.36 billion impairment loss
- Adjusted net income increases to $2.36 billion, with diluted EPS up to $1.76
- Canadian and International Banking segments show resilience amidst economic uncertainty
Scotiabank (TSX:BNS) has released its first-quarter results for the period ended January 31, 2025, reporting a reported net income of $993 million, a decrease from $2,199 million in the same period last year. The drop in net income was largely due to a $1.36 billion impairment loss related to the announced sale of the bank's operations in Colombia, Costa Rica, and Panama to Davivienda. This impairment loss significantly impacted reported earnings, with diluted earnings per share (EPS) falling to $0.66, compared to $1.68 in Q1 2024.
However, on an adjusted basis, Scotiabank's performance showed more positive results. Adjusted net income for the first quarter of 2025 was $2,362 million, an increase from $2,212 million in the prior year. Adjusted diluted EPS rose to $1.76, up from $1.69 in Q1 2024, while adjusted return on equity (ROE) remained consistent at 11.8%, compared to 11.9% last year.
CEO Scott Thomson commented on the results, stating, "Our results this quarter demonstrate the value of our diversified franchise and continued focus on deepening relationships with clients across our footprint. We are encouraged by the progress towards our stated medium-term financial objectives and remain focused on supporting our clients as they navigate through this challenging period of economic uncertainty."
The Canadian Banking segment reported adjusted earnings of $914 million, which marked a 6% decline year-over-year. While the segment experienced higher revenue driven by loan and deposit growth, these gains were offset by higher provisions for credit losses and increased non-interest expenses. Despite the challenges, the segment’s performance highlights Scotiabank's continued efforts to adapt to the evolving economic environment.
International Banking generated adjusted earnings of $692 million, a 7% decrease from the previous year. This decline was largely due to a more normalized performance in business banking and capital markets compared to the record results in Q1 2024. However, the segment saw a 6% increase in earnings from the previous quarter, supported by solid revenue growth, effective expense management, and favorable foreign exchange impacts. Despite these gains, higher provision for credit losses continued to impact the overall performance.
