06:29 AM EDT, 08/26/2025 (MT Newswires) -- Scotiabank (BNS.TO, BNS) was at last look up 1% and at 52 week high levels in US premarket trade Tuesday as it lodged a big overall earnings beat for the third quarter, even if adjusted earnings from Canadian Banking were down on the year earlier period.

For Q3, Scotia reported third quarter net income of $2,527 million compared to $1,912 million in the same period last year. Diluted earnings per share were $1.84, compared to $1.41 in the same period a year ago.

Adjusted net income for the third quarter was $2,518 million and adjusted diluted EPS was $1.88, up from $1.63 last year. National Bank had forecast cash EPS of $1.76 compared to $1.72 consensus estimate. FactSet forecast $1.73 versus $1.63.

The provision for credit losses was $1,041 million compared to $1,052 million, a decrease of $11 million. The provision for credit losses ratio remains unchanged at 55 basis points.

Of divisions, Canadian Banking delivered adjusted earnings of $959 million, up 56% compared to the prior quarter and down 2% compared to the prior year. Scotia said the continued focus on personal demand deposits contributed to quarter-over-quarter margin expansion.

International Banking generated adjusted earnings of $716 million, up 7% year-over-year. It said "solid" revenue generation and strong expense management resulted in another quarter of positive operating leverage reflecting the continued impact of productivity initiatives. Key measures of profitability also improved year-over-year, it added.

Global Wealth Management adjusted earnings were $427 million, up 13% year-over-year driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management of $407 billion grew 12% year-over-year.

Global Banking and Markets reported earnings of $473 million, up 29% compared to the prior year. Scotia said the results were supported by strong performance in capital markets business as well as higher fee revenue.

Among other highlights, adjusted return on equity was 12.4% compared to 11.3% a year ago. The bank reported a Common Equity Tier 1 (CET1) capital ratio of 13.3%.

Also, Scotia announced a dividend on the outstanding shares of $1.10, payable October 29, 2025, to shareholders of record at the close of business on October 7, 2025.

Scott Thomson, President and Chief Executive Officer, said. "We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year. We did this all while maintaining a strong balance sheet and buying back shares."

Shares in Scotia were down $0.17 or 0.2% at $79.53 on the TSX yesterday.