2025-05-26-Jefferies-丰业银行（BNS）_丰业银行2025年第二季度初步观察_（积极）未雨绸缪_8页_107kb

Summary of BNS 2Q25 Equity Research

The report from Jefferies Securities analyzes Bank of Nova Scotia's (BNS) second-quarter 2025 results. The bank's earnings per share of $1.52 missed consensus expectations of $1.54, primarily due to higher provisions on performing loans, which reduced EPS by approximately $0.05. Despite this, the overall performance is viewed positively, driven by strong results from the International segment and an improved capital ratio of 13.2%, enabling a 4% dividend increase for the first time in two years.

Segment highlights show mixed results: Domestic Retail faced headwinds with declining net interest margins but grew average loans; Non-Domestic Retail saw net interest margin improvements supported by lower provisions; Wealth Management experienced modest declines in revenues linked to asset reductions; Capital Markets were hampered by lower trading revenues. Positively, underlying growth appears resilient despite macroeconomic challenges.

The equity research maintains a HOLD rating with a revised price target of C$70 (a 2% cut from a previous high), based on an 11.0x forward P/E and 2025 EPS forecast. Key risks include the performance of Latin American operations and potential economic slowdowns affecting credit, revenues, and market conditions.

In conclusion, while the provision increases are a concern, the bank's operational strengths and capital health support a favorable view, provided investors overlook top-line issues and focus on long-term stability.