The Bank of Nova Scotia(BNS) - 2025 Q1 - Quarterly Report

Financial Performance - Net interest income for Q1 2025 was $5,173 million, an increase from $4,923 million in Q4 2024 and $4,773 million in Q1 2024[21]. - Total revenue reached $9,372 million, up from $8,526 million in Q4 2024 and $8,433 million in Q1 2024[21]. - Net income attributable to common shareholders decreased to $1,025 million from $1,521 million in Q4 2024 and $2,066 million in Q1 2024[21]. - Basic earnings per share for Q1 2025 was $0.82, down from $1.23 in Q4 2024 and $1.70 in Q1 2024[21]. - Adjusted net income for Q1 2025 was $2,362 million, compared to $2,119 million in Q4 2024[21]. - Reported net income for the three months ended October 31, 2024, was $1,689 million, with net income attributable to common shareholders at $1,521 million[39]. - Adjusted net income for the same period was $2,119 million, with adjusted net income attributable to common shareholders at $1,951 million[39]. - The reported net income for Q1 2025 was $993 million, a decrease of 55% compared to $2,199 million in Q1 2024, primarily due to higher non-interest expenses including a $1,362 million impairment loss[79]. - Adjusted net income increased by 7% to $2,362 million from $2,212 million in the previous year, driven mainly by higher revenues[100]. Revenue and Income Breakdown - Non-interest income increased by 15% to $4,199 million, primarily due to higher trading-related revenues and wealth management revenues[105]. - Total revenue for Q1 2025 was $3,412 million, an increase of $187 million or 6% compared to Q1 2024[134]. - Net interest income rose to $2,647 million, up $156 million or 6%, primarily due to asset and deposit growth[134]. - Non-interest income increased to $765 million, a rise of $31 million or 4%, driven by higher private equity gains and mutual fund distribution fees[135]. - Total revenue for Q1 2025 was $1,594 million, up 23% from $1,293 million in Q1 2024[203]. Credit Losses and Provisions - The provision for credit losses was $1,162 million, compared to $1,030 million in Q4 2024 and $962 million in Q1 2024[21]. - The provision for credit losses increased to $1,162 million in Q1 2025 from $962 million in Q1 2024, representing a $200 million increase[108]. - The provision for credit losses on performing loans rose to $98 million in Q1 2025, compared to $20 million in Q1 2024, primarily due to credit migration in retail unsecured lines and corporate portfolios[109]. - Provision for credit losses was $538 million, an increase of $160 million compared to $378 million in Q1 2024, with a provision ratio of 47 basis points[138]. - Provision for credit losses for Q1 2025 was $18 million, compared to $5 million in Q1 2024, reflecting credit migration and a negative macroeconomic outlook[206]. Expenses and Efficiency - Non-interest expenses rose to $6,491 million in Q1 2025, up 22.6% from $5,296 million in Q4 2024[29]. - Non-interest expenses were $6,491 million in Q1 2025, up $1,752 million or 37% year-over-year, including an impairment loss of $1,362 million related to the sale of banking operations in Colombia, Costa Rica, and Panama[113]. - The productivity ratio increased to 69.3% from 62.1% in Q4 2024, indicating higher non-interest expenses relative to revenue[21]. - The adjusted productivity ratio was 54.5% in Q1 2025, down from 56.0% in Q4 2024, reflecting challenges in managing costs[116]. Capital and Assets - The Common Equity Tier 1 (CET1) capital ratio was 12.9%, slightly down from 13.1% in Q4 2024[21]. - Total assets increased to $1,439,151 million from $1,412,027 million in Q4 2024[21]. - Average total assets for the consolidated bank increased to $1,460,615 million as of January 31, 2025, from $1,418,795 million as of October 31, 2024[53]. - Average assets increased by $15 billion to $460 billion in Q1 2025, driven by a $10 billion increase in residential mortgages[130]. Market and Economic Outlook - The economic outlook indicates a slowdown in U.S. GDP growth to 1.9% in 2025 from 2.8% in 2024, influenced by trade policy uncertainties[91]. - The Canadian economy is expected to grow by 1.8% in 2025, supported by lower policy rates despite trade uncertainties from the U.S.[92]. Strategic Initiatives - The Bank completed an acquisition of approximately 14.9% ownership interest in KeyCorp for about $2.8 billion, with the additional investment of approximately $2.0 billion completed on December 27, 2024[81][82]. - The company aims to enhance its market position through strategic adjustments and potential acquisitions in the upcoming quarters[44].