On May 27, 2025, Scotiabank reported second-quarter net income of $2,032 million, down from $2,092 million in the same period last year. Diluted earnings per share (EPS) were $1.48, compared to $1.57 a year ago, with adjusted EPS of $1.06, missing expectations.
The bank's revenue for Q2 2025 was CA$7.66 billion, an increase of 4.3% from the prior year. However, its Canadian banking unit recorded a 31% drop in net income, primarily due to an increase in loan loss reserves, as tariff uncertainty impacted Canadian retail and commercial portfolios.
Despite the earnings miss and higher credit loss provisions, Scotiabank announced an increase to its quarterly dividend by 4 cents, bringing it to $1.10 per share, payable July 29, 2025. This signals confidence in future earnings and commitment to shareholder returns.
Furthermore, the bank announced its intention to seek regulatory approval for a normal course issuer bid to purchase up to 20 million of its common shares. This represents approximately 1.6% of its outstanding shares, aiming to return value to shareholders and optimize capital.
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