Bank of Nova Scotia ($BNS) Crushes Q3 Estimates with Explosive Revenue Growth

Scotiabank just delivered a quarter that'll make traditional finance analysts actually crack a smile—for once.

Earnings Beat: Numbers Don't Lie

The Bank of Nova Scotia didn't just meet expectations—it bulldozed right through them. Revenue surged, proving that even legacy institutions can pull off a growth spurt when they need to.

Strong Performance: No Fluke Here

This wasn't a lucky break. Consistent execution and strategic positioning fueled those results—something Wall Street rarely credits until after the fact.

Let's be real: in a sector where 'innovation' often means adding another fee, Scotiabank’s performance almost feels disruptive. Almost.

TLDR

• Q3 2025 net income rose to $2.53B from $1.91B last year.
• EPS came in at $1.84, beating analyst estimates of $1.73.
• Adjusted EPS climbed 15% year-over-year to $1.88.
• Revenue grew 13.4% to $9.49B, ahead of forecasts.
• Shares traded at $60.19, up 5.01% during midday Tuesday.

On Tuesday, August 26, 2025, The Bank of Nova Scotia (NYSE: BNS) reported better-than-expected third-quarter results, with its shares trading at $60.19, up 5.01% in midday action.

The Bank of Nova Scotia (BNS)

Net income ROSE to $2.53 billion from $1.91 billion in the prior year, while diluted earnings per share increased to $1.84 from $1.41. On an adjusted basis, EPS came in at $1.88, surpassing analyst expectations of $1.73.

Revenue climbed 13.4% year-over-year to $9.49 billion, beating consensus forecasts of $9.3 billion. CEO Scott Thomson credited the results to strong revenue growth and operating leverage while highlighting the bank’s balance sheet strength and share buybacks.

#BNS (The Bank of Nova Scotia) a její dnešní Earnings v jednoduchém tvaru, držíme a držet budeme…:c) pic.twitter.com/JQbfXVoxkQ

— BHS Dynamic Fund (@BHSDynamicFund) August 26, 2025

Business Segment Performance

Canadian Banking posted adjusted earnings of $959 million, representing a 56% increase compared to the prior quarter but a 2% decline from last year, due to higher expenses and credit loss provisions.

International Banking generated adjusted earnings of $716 million, up 7% year-over-year, supported by solid revenue and productivity initiatives.

Global Wealth Management earnings rose 13% year-over-year to $427 million, driven by stronger mutual fund fees, brokerage revenues, and net interest income. Assets under management reached $407 billion, marking a 12% increase from the prior year.

Global Banking and Markets delivered $473 million in earnings, a 29% increase compared to last year, fueled by strong capital markets activity and higher fee-based revenue.

Financial Strength

The bank reported a return on equity of 12.2% on a reported basis, compared to 9.8% last year. On an adjusted basis, return on equity improved to 12.4% from 11.3% a year ago, reflecting stronger profitability.

The Common Equity Tier 1 (CET1) ratio improved to 13.3%, up 10 basis points from the previous quarter, underscoring the bank’s robust capital position. Provisions for credit losses declined slightly to $1.04 billion from $1.05 billion in Q3 2024.

Outlook

The Bank of Nova Scotia’s Q3 results demonstrated meaningful progress across its Core segments, with international banking, wealth management, and global markets all contributing to year-over-year growth. While Canadian Banking showed mixed results due to cost pressures, the bank’s diversified business model provided resilience.

With earnings beating expectations and revenue momentum continuing, analysts view Scotiabank’s performance as a positive signal for sustained profitability into the final quarter of 2025.