Scotiabank reports Q4 profits rise to $2.21 billion despite restructuring charge

The Bank of Nova Scotia, or Scotiabank, signage is pictured in the financial district in Toronto. THE CANADIAN PRESS/Andrew Lahodynskyj

TORONTO — Scotiabank kicked off fourth-quarter bank earnings by reporting a rise in profits that beat analyst expectations, despite a restructuring charge related to layoffs.

The bank said it earned $2.21 billion in the quarter ending Oct. 31, up from $1.69 billion the same quarter, helped by strength in its wealth management and capital markets businesses.

“2025 was a year of execution,” chief executive Scott Thomson told a conference call to discuss the bank’s latest results with financial analysts Tuesday.

“We did what we said we were going to do despite the emergence of unexpected trade-related economic challenges. We accomplish this by focusing on what we can control.”

Among the bank’s actions to adapt to uncertainty was to carry out job cuts that resulted in a $373-million restructuring charge in the quarter.

The bank wouldn’t say how many jobs were involved when news of the cuts first broke, but filings show Scotiabank has 2,291 fewer employees at the end of the fourth quarter than it did at the end of the first.

“The actions simplify and streamline our organizational setup, which will free up capacity to further invest in technology and revenue generating sales staff,” Thomson said.

Looking ahead, he said the bank is well-positioned to benefit from Canada’s renewed focus on energy and mining development.

“The recent memorandum of understanding on energy between the Canadian federal government and the province of Alberta is a very significant development in our view and proof that Canada truly is on a new economic trajectory,” Thomson said.

The potential growth in major projects come as tariffs and economic uncertainty weigh on some clients.

Scotiabank’s provision for credit losses amounted to $1.11 billion for the quarter, up from $1.03 billion a year ago.

“We continue to operate in what remains a highly uncertain macroeconomic environment,” Phil Thomas said.

Thomas, who has been chief risk officer since 2021, moves into the group head and chief strategy and operating officer role effective Tuesday as part of a wider leadership shuffle announced in November.

He said that while clients are showing some signs of stress, issues remain isolated and not systemic. Mortgage delinquencies rose slightly from the previous quarter, driven mostly from weakness in the Greater Toronto Area.

“In Canada, the absence of a trade deal with the U.S. and elevated unemployment continue to weigh on sentiment,” Thomas said.

“However, we are cautiously optimistic that the federal budget will contribute to greater economic growth and improved consumer and business sentiment.”

On an adjusted basis, Scotiabank says it earned $1.93 per diluted share in its latest quarter, up from an adjusted profit of $1.57 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $1.84, according to estimates compiled by LSEG Data & Analytics.

National Bank analyst Gabriel Dechaine said in a note that margin expansion and capital markets drove the beat, while provisions came in slightly worse than expected.

The bank’s global wealth management business earned $447 million in net income attributable to equity holders, up from $380 million in the same quarter last year, while its global banking and markets business earned $519 million for the quarter, up from $347 million a year ago.

Scotiabank’s Canadian banking operations earned $941 million in its latest quarter, up from $934 million in the same quarter last year.

Meanwhile, Scotiabank’s international banking arm earned $634 million in net income attributable to equity holders of the bank for the quarter, up from $600 million a year ago.

Ian Bicks, The Canadian Press

This report by The Canadian Press was first published Dec. 2, 2025.