06:33 AM EST, 02/25/2025 (MT Newswires) -- (In a first take on the Scotiabank Q1 earnings it was incorrectly stated that the FactSet forecast for adjusted diluted EPS was $1.82. It should have read $1.65. This is corrected in the second paragraph and some more detail on the result is added from the fourth paragraph.)

The Bank of Nova Scotia ( BNS ) was at last look flat to slightly lower in US pre-market trading on Tuesday, losing some of its earlier gains, after reporting mixed first-quarter earnings, as the Canadian Banking and International Banking divisions generated lower adjusted earnings while the Global Banking and Markets did better.

For the three months ended Jan. 31, the bank reported adjusted diluted earnings per share of $1.76, compared to $1.69 in the previous year. FactSet had forecast $1.65. Adjusted Net income was $2.36 billion, compared to $2.2 billion.

The bank had net income of $993 million compared to $2.2 billion in the same period last year. In this year's first quarter, the bank booked an impairment loss of $1.36 billion related to the announced sale of the banking operations in Colombia, Costa Rica and Panama to Davivienda. Diluted earnings per share came in at $0.66, compared with $1.68.

Among highlights, Canadian Banking delivered adjusted earnings of $914 million, down 6% year-over-year, as higher revenue from solid loan and deposit growth were more than offset by higher provision for credit losses and non-interest expenses.

International Banking generated adjusted earnings of $692 million, down 7% year-over-year, reflecting "solid but more normalized" business banking and capital markets performance relative to the record results in the same quarter last year. Strong 6% quarter-over-quarter earnings growth driven by higher revenue, expense management, and the favorable impact of foreign exchange, was partly offset by higher provisions for credit losses. Positive operating leverage continues to reflect the impact of successful productivity initiatives in the region.

Global Wealth Management adjusted earnings rose 22% from the same quarter in the previous year to $416 million, on higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses. Additionally, assets under management of $396 billion grew 16% year-over-year.

Earnings at the Global Banking and Markets division rose by a third to $517 million, compared to the prior year. The results were driven by the bank's capital markets business as well as higher underwriting and advisory fees in the corporate and investment banking business.

The Bank reported a Common Equity Tier 1 (CET1) capital ratio of 12.9%. Adjusted Return on equity was 11.8%, compared with 11.9%.

Scott Thomson, president and CEO of Scotiabank said: "We are encouraged by the progress towards our stated medium-term financial objectives and remain focused on supporting our clients as they navigate through this challenging period of economic uncertainty."