BNS Stumbles on Q2 Earnings—But Throws $20M at Share Buybacks to Soften the Blow

Another quarter, another miss—The Bank of Nova Scotia (BNS) whiffed on profit expectations, proving even Canadian banks aren’t immune to the ‘meh’ economy. But hey, at least shareholders get a consolation prize: a 20-million-share buyback. Because nothing says ‘we’ve got your back’ like financial engineering.

Wall Street shrugs—analysts expected more, but BNS doubled down on the oldest trick in the book: shrink the float, prop up the stock. Classic move—just don’t ask about organic growth.

Bottom line? Banks gonna bank. Buybacks won’t fix weak earnings, but they’ll buy time—and maybe keep the dividend brigade happy. For now.

TLDR

• BNS stock currently trades at $52.62, up 0.83%.
• Q2 adjusted EPS was C$1.52, below analyst estimates of C$1.56.
• Revenue rose 8.8% year-over-year to C$9.08 billion.
• Dividend increased by 4% to C$1.10.
• Analysts project a mixed outlook with potential downside and upside estimates.

The Bank of Nova Scotia (NYSE: BNS) stock traded at $52.62 as of May 27, 2025, up 0.83% in early trading.

The Bank of Nova Scotia (BNS) 

The bank just reported its second-quarter results for the period ending April 30, showing lower profit but stronger revenue. Investors are eyeing the May 27 earnings date for more updates on the bank’s performance.

Q2 Earnings Performance

For the second quarter, BNS posted adjusted earnings per share (EPS) of C$1.52, down from C$1.58 a year earlier and falling short of analyst expectations of C$1.56. Reported EPS came in at C$1.48, compared to C$1.57 last year.

Despite the earnings miss, revenue climbed 8.8% to C$9.08 billion, beating last year’s C$8.35 billion. The bank also reported net income of C$1.84 billion, down from C$1.94 billion in the same quarter last year. Analysts had forecast revenue of C$9.09 billion, making the result slightly below expectations.

Dividend Boost and Credit Losses

BNS raised its dividend by 4%, now paying C$1.10 per share. This increase underscores the bank’s commitment to shareholder returns, even as it navigates rising credit loss provisions. Credit loss provisions jumped from C$1.01 billion to C$1.40 billion, reflecting a more cautious outlook on potential loan defaults.

Share Buyback Plan

Scotiabank announced plans to repurchase up to 20 million of its common shares, about 1.6% of outstanding shares. The buyback, pending regulatory approval, aims to enhance capital management and shareholder value. Purchases could begin around May 30, 2025, and continue until May 29, 2026.

$BNS Scotiabank plans to repurchase up to 20M common shares

The Bank of Nova Scotia announced its intention to seek regulatory approval, including from the Toronto Stock Exchange, for a normal course issuer bid to purchase up to 20M of its Common Shares. This represents…

— DonCorleone77 (@CorleoneDon77) May 27, 2025

Analyst Recommendations and Price Targets

Analysts remain cautious about BNS, with the current average rating set at “Hold.” The ratings breakdown shows no “Buy” or “Strong Buy” recommendations, one “Hold,” and one “Sell” or “Strong Sell.”

Price targets for BNS vary, with a median 12-month estimate of $50.73, signaling a possible downside of around 6.83% from the current price. Forecasts range between a high of $52.79 and a low of $39.35.

GF Value and Future Outlook

GuruFocus estimates the GF Value of BNS at $56.47, indicating an 8.2% upside potential from its current level. This fair value calculation takes into account historical multiples, business growth trends, and future performance expectations.

Conclusion

While BNS delivered strong revenue growth and a dividend increase, its lower-than-expected earnings and rising credit losses raise concerns. Investors should weigh mixed analyst ratings and future projections carefully before making decisions. The upcoming May 27 earnings release could provide more clarity on the bank’s strategy and financial health.