beat analysts' expectations for the fourth quarter after reporting higher earnings in its global banking and markets segment on Tuesday.
The bank also said it recorded “restructuring and severance charges” and other related expenses of $373 million, primarily due to workforce reductions across its global operations.
“These amounts reflect the actions the bank has taken to simplify its organizational structure in the Canadian banking industry, restructure and realign its Asian operations in the global banking industry and markets, and regionalize activities within its international presence,” the bank said in a statement Tuesday.
Scotiabank's net income for the three months ended Oct. 31 was $2.2 billion, compared with $1.7 billion in the same period a year ago, resulting in net earnings per share of $1.65.
The lender's adjusted net income, which excludes the impact of one-time items, was $2.6 billion, up from $2.2 billion a year ago, resulting in adjusted earnings per share of $1.93, beating analysts' expectations of about $1.85 per share.
For fiscal 2025, Scotiabank reported net income of $7.78 billion, up from $7.9 billion last year, resulting in earnings per share of $5.67. Its full-year adjusted net income was $9.5 billion, up from $8.63 last year, or earnings per share of $7.09.
“We delivered improved results throughout the year, strengthening our balance sheet,” CEO Scott Thomson said in a statement Tuesday. “This quarter, all of our businesses reported year-over-year profit growth, particularly in Global Wealth Management and Global Banking and Markets, as well as improved results in Canadian Banking.”
Scotiabank's Canadian banking segment profit increased one per cent year over year to $942 million, while its international banking segment generated profit of $638 million, up five per cent.
Its Global Wealth Management and Global Banking and Markets segments grew 17 percent and 50 percent, respectively, driven by strong revenue from higher mutual fund fees, brokerage income, capital markets and business banking.
“We have made clear progress on our key priorities, including disciplined capital allocation, prioritizing value over volume, attracting core customers and finding ways to do things better, faster, safer and at lower costs,” Thomson said.
Provisions for loan losses, or the amount of money a bank sets aside for potentially bad loans, increased to $1.11 billion in the fourth quarter from $1.03 billion a year ago and $1.04 billion in the third quarter.
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