Scotiabank (BNS) Outpaces Earnings Forecasts but Misses Revenue Expectations

Aug 26, 2025 3:00 PM - Andrew Wynn

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Scotiabank (NYSE:BNS) reported an earnings per share (EPS) of $1.27, surpassing the Zacks Consensus Estimate of $1.19, delivering a positive earnings surprise of +6.72%. However, the bank's revenue of $6.53 billion fell short of the Zacks Consensus Estimate of $6.66 billion.

The Bank of Nova Scotia, commonly known as Scotiabank, is one of Canada's largest banks, offering a broad range of financial services, including personal and commercial banking, wealth management, and investment banking. As the fourth-largest bank in Canada, it competes with major peers like RBC, TD, and CIBC.

On August 26, 2025, Scotiabank's EPS of $1.27 beat estimates, driven by lower-than-expected provisions for loan losses, signaling improved credit conditions, as noted by Proactive Investors. Despite the revenue shortfall, the $6.53 billion in revenue for the quarter ending July 2025 marked a 6.7% increase from the $6.11 billion reported in the same quarter the previous year, reflecting growth in revenue generation.

Scotiabank's financial metrics include a price-to-earnings (P/E) ratio of approximately 15.71, indicating the market's valuation of its earnings. The price-to-sales ratio is around 1.39, reflecting the company's market value relative to its sales, while the enterprise value to sales ratio stands at about 6.93. The bank faces a high debt-to-equity ratio of approximately 5.65, suggesting significant leverage, and a current ratio of around 0.19, indicating potential liquidity challenges. Despite these concerns, the earnings yield of approximately 6.36% offers a solid return for shareholders.

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