Scotiabank reported higher fourth-quarter profit despite trade war pressures on the economy and a restructuring charge.
The bank announced Tuesday that its profit for the quarter ended Oct. 31 was $2.2 billion, up from $1.69 billion in the same period last year. It said the increase was primarily driven by higher net interest income and non-interest income.
Scotiabank recorded $1.1 billion in provisions for credit losses — funds banks must set aside to cover potential loan losses — in the quarter. That compares with $1.03 billion in the same period last year.
Profits were also hit by a restructuring charge and severance provisions of $373 million in the fourth quarter. The charges were related to “actions taken to simplify the organizational structure in Canadian Banking” and other global operational efforts.
In mid-October, several media outlets reported that Scotiabank was cutting jobs across its Canadian banking unit, though the company did not disclose how many and which specific teams were impacted.
The Star later found that Scotiabank told the federal government it would be laying off close to 2,500 employees in Toronto this year, according to a public document that was removed from the government’s website shortly after the layoff news broke.
According to the annual report released Tuesday, Scotiabank had 86,431 employees at the end of this fiscal year versus 88,488 last year.
Profits for the fiscal year were $7.7 billion, down from $7.9 billion in 2024.
In a statement, Scotiabank CEO Scott Thomson said 2025 was a “very positive year for the bank.”
“This quarter all our business lines reported year-over-year earnings growth with particular strength in Global Wealth Management and Global Banking and Markets and improving results in Canadian Banking.”
This is a developing story.
