Bank Of Nova Scotia

Adjusted Earnings and Impact of PCLs: Scotiabank reported adjusted earnings of $2.1 billion ($1.52 per share) for Q2 2025, a significant increase driven by strong revenue growth (up 9% year-over-year). However, the return on equity (ROE) declined to 10.4%, a drop of 90 basis points from the previous year, primarily due to higher performing credit loss provisions (PCLs) which amounted to approximately $1.4 billion.

Increased Provisions for Credit Losses: The bank built up $1.8 billion in allowances since the end of 2022, with a significant Q2 build attributed to a conservative response to increasing macroeconomic uncertainty and worsening forward-looking indicators. Specifically, performing provisions were $346 million, rising by 13 basis points quarter-over-quarter, reflecting an anticipated deterioration in credit performance.

Dividend Increase and Share Buyback: Scotiabank announced a quarterly dividend increase of $0.04 to $1.10 per share, reflecting confidence in its capital generation trajectory. Additionally, the bank initiated a share buyback program for 20 million shares, intended to return capital to shareholders amidst a depressed valuation.