Should I buy Scotiabank stock in 2025?

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At HelloSafe, our expert has been following Scotiabank’s performance for over three years. Each month, more than one million Canadians rely on us to analyze market trends and uncover the best investment opportunities. Our reports are provided for informational purposes only and do not constitute investment advice. In line with our ethical guidelines, we have never been, and will never be, compensated by Scotiabank.

What is Scotiabank?

*Projected based on current run rate and recent quarterly performance.

How much is Scotiabank stock?

The price of Scotiabank stock is falling this week. As of today, Scotiabank shares are trading at C$68.13, reflecting a -0.58% change over the past 24 hours and a -1.28% decline for the week. The company’s market capitalization stands at C$84.86 billion, with an average daily trading volume of 5.39 million shares over the last three months.

With these figures, the stock currently demonstrates moderate volatility, making it important for investors to monitor both short-term trends and long-term value drivers.

Our full analysis on Scotiabank stock

Having reviewed Scotiabank’s latest quarterly results and dissected its stock performance since 2022, we have leveraged an integrated approach combining up-to-date financial data, technical analysis, peer benchmarking, and macro market trends—refined through our proprietary quantitative algorithms. This methodical assessment uncovers new signals in valuation resilience, sector positioning, dividend profile, and capital allocation evolution. So, why might Scotiabank stock once again become a strategic entry point into the North American financial sector in 2025?

Recent Performance and Market Context

In the past year, Scotiabank shares (BNS.TO) have moved resolutely higher, posting a 7.87% gain, comfortably outperforming several sector peers amid a complex global financial backdrop. While recent weeks brought a -1.28% pullback and the past six months saw a moderate -6.23% correction, this consolidation aligns with cyclical patterns typical in Canadian banks following periods of sector rotation. The current share price of C$68.13 situates the stock midway within its 52-week range (C$60.68–C$80.14), a level that historically supports renewed institutional interest.

The past quarter marks a significant inflection in Scotiabank’s strategic roadmap. The bank’s Q1 2025 adjusted net income surged to C$2.36 billion—up from C$2.21 billion a year prior—despite absorbing a C$1.36 billion impairment tied to the strategic exit from select Latin American markets. This repositioning, reinforced by the completed KeyCorp investment (expected to add C$71 million to Q2 2025 income), signals intensified focus on stable, higher-margin North American opportunities. Simultaneously, robust wealth management and capital markets results have further differentiated Scotiabank from its closest domestic competitors.

On the macro level, Canada’s ongoing economic resilience, measured monetary policy, and persistent demand for banking and wealth management services have underpinned sector fundamentals. Scotiabank’s relatively low beta (1.04) reflects a moderate risk profile—making it an appealing choice for investors navigating persistent volatility in the global banking landscape.

Technical Analysis

Technical indicators reveal an increasingly constructive picture for Scotiabank’s share price progression. The stock is trading above its 20-day (C$66.62), 50-day (C$67.87), and 200-day (C$67.48) exponential moving averages, supporting the view that short- and medium-term momentum is skewed to the upside. The only technical caveat is a minor breach below the 100-day EMA (C$69.02), offering an interesting inflection for medium-term strategists.

• The RSI stands at 57.62, suggesting neither overbought nor oversold conditions and thus leaving significant headroom for further price appreciation.
• The MACD, while still modestly negative (-0.16), is converging toward a bullish crossover, an event that often preludes material upward movement in Canadian bank equities.
• The ADX at 29.14 reflects a moderate and strengthening trend, fitting with the gradual return of buying interest in quality financials.

A clustering of key support levels at C$67.08, C$66.51, and C$66.19 underpins the case for limited downside risk. Meanwhile, resistance looms at C$67.97 and C$68.86—zones that, if broken, could spark a new bullish sequence in the coming quarters.

In sum, this accumulation phase, characterized by higher lows and resistance challenges, appears to be laying the groundwork for a technical breakout as the year unfolds.

Fundamental Analysis

• Revenue and Earnings Trajectory: The 6.9% year-over-year increase in adjusted net income (C$2.36 billion in Q1 2025) comes despite transitory restructuring costs. Notably, core segment momentum—such as 22% earnings growth in Global Wealth Management and 33% growth in Global Banking & Markets—signals sustained diversification, a hallmark of the bank’s underlying strength.
• Valuation: With a price-to-earnings ratio of 14.05, Scotiabank trades below many North American bank peers and under the 10-year sector average, reflecting both cyclical caution and latent upside. A price-to-book value of 1.14 and a price-to-sales ratio of 2.46 each reinforce the notion of an attractive entry point for value- and dividend-oriented investors.
• Capital Structure and Dividend Leadership: The bank’s CET1 capital ratio of 12.9% provides both a considerable buffer and strategic optionality for accretive initiatives or returning value to shareholders. The 6.19% forward dividend yield—among the highest in its peer group—adds a significant layer of income stability in an environment marked by fluctuating interest rates.
• Strategic Refocus: The ongoing North American pivot—supporting exposure growth in Canada, the US, and Mexico—reduces emerging-market risk and realigns Scotiabank with sectors properly positioned for long-term expansion, particularly as NAFTA/USMCA regions benefit from macro tailwinds.

Finally, management’s emphasis on enhancing digital customer engagement and cross-segment synergies leverages the strengths of Scotiabank’s powerful brand and 88,700-strong workforce, driving differentiated customer acquisition and retention.

Volume and Liquidity

Turnover in Scotiabank shares remains robust, with TSX daily volumes averaging 5.39 million shares, matched by 2.01 million on the NYSE. Sustained high liquidity not only reflects deep investor confidence in the name but also creates optimal conditions for efficient price discovery and nimble portfolio management.

Moreover, the stock’s wide investor base, institutional sponsorship, and favorable free float dynamics limit price distortion risk and contribute to valuation stability—a further plus for those seeking to build sizable positions without encountering liquidity traps.

Catalysts and Positive Outlook

• North American Expansion: The completed KeyCorp investment and a sharpened Canada/US/Mexico strategy promise higher-margin, lower-volatility growth, reducing historical sensitivity to emerging-market swings.
• Accelerated Wealth Management and Capital Markets Growth: Assets under management soared 76% year-over-year to C$396 billion, underpinning faster-fee-based income and the prospect of even greater scale benefits as cross-selling deepens.
• Capital Efficiency: The CET1 ratio of 12.9% allows room for continued dividend growth, selective acquisitions, or buybacks—each potential upside catalyst as the macro outlook firms.
• ESG and Digital Investments: Management’s commitment to digital transformation and responsible banking aligns with evolving regulatory and consumer priorities, positioning Scotiabank to benefit from capital inflows prioritizing ESG credentials.
• Sector Rotation: Institutional flows into financials—spurred by potential stabilization in interest rates and robust labor market data—create a fertile environment for well-capitalized banks like Scotiabank to outperform.

Collectively, these factors—if coupled with a benign credit environment—may unlock further re-rating potential as earnings quality and capital returns continue to improve.

Investment Strategies

• Short-Term (1–6 months):
• Technical signals point to a constructive risk-reward setup at current levels, with nearby support cushioning downside.
• Near-term catalysts, such as Q2 earnings (anticipated positive KeyCorp impact), could accelerate a price recovery as sentiment normalizes.
• Medium-Term (6–18 months):
• Execution of the ongoing North American shift and progressing capital efficiency could underpin double-digit total return potential, especially if economic conditions in Canada and the US stay buoyant.
• Upcoming product launches in digital banking or targeted acquisitions in the US/Mexico corridor may add further market excitement.
• Long-Term (18+ months):
• For income-focused investors, the attractive 6.19% dividend yield—fully covered by robust earnings and protected by capital strength—suggests powerful compounding potential.
• Participation in Scotiabank at or near the current technical base may represent optimal portfolio positioning, capturing both cyclical banking recovery and secular growth through wealth management and innovation.

Optimal accumulation strategies include laddering purchases around current support levels, or tactical entries ahead of scheduled catalysts (e.g., quarterly results, dividend announcements, regulatory developments).

Is it the Right Time to Buy Scotiabank?

Scotiabank stands out as a case study in resilience and forward-looking adaptability within Canadian and North American banking. Its blend of compelling valuation, robust dividend yield, solid capital base, and strategic realignment creates multiple avenues for value creation—both for risk-tolerant investors and those seeking reliable income streams.

With technical signals showing a possible transition out of consolidation, robust trading liquidity, and catalysts lining up for both earnings and strategic growth, Scotiabank seems to represent an excellent opportunity for those seeking to capitalize on the next phase of sector rotation and North American banking innovation. In short, the bank’s fundamentals and momentum justify renewed interest, while the current valuation and sector positioning suggest the stock may be entering a new bullish phase.

As Canada’s financial sector continues to evolve, Scotiabank offers a unique combination of yield, optionality, and re-rating potential at the heart of the market. The coming quarters may well confirm Scotiabank’s role as a cornerstone holding for investors seeking to leverage both the stability and dynamic upside of the Canadian banking landscape.

How to buy Scotiabank stock in Canada?

Buying Scotiabank (BNS) stock online is simple, secure, and accessible to all Canadian investors, thanks to regulated brokers overseen by financial authorities. You can purchase Scotiabank shares in two main ways: by buying actual shares (spot buying) or by trading Contracts for Difference (CFDs), which allow you to speculate on price fluctuations with leverage. Both methods have unique benefits and risks. You’ll find an in-depth comparison of leading brokers further down the page to help you identify the most suitable and cost-effective platform.

Spot Buying

Spot (cash) buying means purchasing real Scotiabank shares on the Toronto Stock Exchange (TSX), giving you direct ownership, voting rights, and eligibility for dividends. In Canada, brokers typically charge a fixed commission per order, often ranging from C$0 to C$10 per trade.

Example with a C$1,000 investment:

If the Scotiabank share price is C$68.13, a C$1,000 investment (minus a typical C$5 brokerage fee) allows you to buy approximately 14 shares (C$68.13 × 14 = C$953.82 + C$5 fee ≈ C$958.82 total cost).

Gain scenario: If the share price rises by 10%, your 14 shares would now be worth C$1,049 (C$68.13 × 1.10 × 14 ≈ C$1,049).

Result: That’s a C$100 gross gain, or +10% on your original investment (excluding fees and taxes), plus any dividends received.

Trading via CFD

CFD (Contract for Difference) trading lets you speculate on Scotiabank’s share price without owning the actual stock, and allows for higher leverage. Instead of paying a fixed commission, CFD trading involves paying the spread (the difference between buy/sell prices) and potential overnight financing fees if positions are held for more than one day. This method carries higher risk and is suitable for experienced traders.

Example with a C$1,000 stake and 5x leverage:

You open a CFD position on Scotiabank shares with 5x leverage, giving you exposure to C$5,000 worth of stock.

Gain scenario: If the share price rises by 8%, your position gains 8% × 5 = 40%.

Result: That’s a C$400 gain on your C$1,000 stake (excluding spread and overnight fees), but remember: losses are also magnified.

Final Advice

Before investing in Scotiabank shares, it’s crucial to compare brokers’ fees, trading platforms, and account features—each may differ in costs and services. Your choice between buying real shares or using CFDs should reflect your risk tolerance and investment objectives. You’ll find a detailed broker comparison further down this page to help you make a well-informed decision.

Platforms

Minimum Deposit

Discover

#1

Tier 1 regulation, including ASIC and FSA

#1

Star Trader

4.9

Minimum Deposit

$50

Discover

with our partner Star Trader

#2

Broker specializing in Forex and CFDs

#2

IFC Markets

4.8

Minimum Deposit

$1

Discover

with our partner IFC Markets

#3

Broker regulated since 2006

#3

Avatrade

4.8

Minimum Deposit

$100

Discover

with our partner Avatrade

Our 7 tips for buying Scotiabank stock

The latest news about Scotiabank

Scotiabank’s recent completion of a strategic investment in KeyCorp marks a notable step in its North American expansion. Announced during the past week, this transaction is expected to immediately contribute approximately C$71 million to the bank’s net income for Q2 2025, supporting the broader strategy of shifting resources towards core markets in Canada, the United States, and Mexico. This move is particularly significant for Canadian investors, as it reinforces Scotiabank’s commitment to strengthening its footprint in stable, high-growth regions closer to home, reducing reliance on riskier international segments, and potentially providing more predictable earnings streams.

Scotiabank reported robust Q1 2025 financial results, highlighted by strong performance in wealth management and capital markets. Despite recording a C$1.36 billion impairment due to divestitures in Latin America, the bank’s adjusted net income reached C$2.36 billion, an increase from the previous year. Standout results include a 22% year-over-year increase in Global Wealth Management earnings and a 33% rise in Global Banking and Markets profits, largely driven by increased assets under management (now C$396 billion, up 76% annually) and higher underwriting and advisory fees. These results underscore the resilience of Scotiabank’s diversified operations, particularly within Canada and its main markets, even amid global economic uncertainty.

Scotiabank’s share price continues to demonstrate relative stability with bullish technical signals on shorter timeframes. As of April 30, 2025, the stock trades above its 20-day, 50-day, and 200-day exponential moving averages, signaling positive short-term momentum. The Relative Strength Index (RSI) is at a neutral 57.62, while the average daily volume remains healthy at over 5 million shares on the TSX. While the six-month trend is modestly negative, the 1-year gain of nearly 8%—outperforming some Canadian peers—reflects improving investor sentiment and market confidence in Scotiabank’s domestic growth initiatives.

The bank’s capital strength and dividend policy continue to offer appeal for Canadian income investors. Scotiabank maintains a Common Equity Tier 1 (CET1) ratio of 12.9%, providing ample flexibility for future investments, regulatory compliance, and continued shareholder returns. The forward dividend yield stands at an attractive 6.19% with annual payouts of C$4.24 per share; these dividends qualify as “eligible dividends” for Canadian tax credits and are permitted within registered accounts like RRSPs and TFSAs. This capital discipline and dividend consistency further solidify Scotiabank’s role as a core holding for risk-conscious Canadian portfolios.

The recent divestiture of operations in Colombia, Costa Rica, and Panama advances Scotiabank’s refocus on the Canadian market and strategic priorities. Finalized with a related impairment charge in Q1, this exit enables management to redeploy capital toward higher-priority North American markets, a move in line with CEO Scott Thomson’s stated goal to deepen client relationships and drive value for Canadian stakeholders. By concentrating resources domestically and in the United States and Mexico, Scotiabank is better positioned to navigate regional regulatory requirements, economic trends, and client preferences, enhancing its long-term growth trajectory and reducing exposure to emerging market volatility.

FAQ

P. Laurore

Finance expert

Co-founder of HelloSafe and holder of a Master's degree in finance, Pauline has recognised expertise in personal finance, which she uses to help users better understand and optimise their financial choices. At HelloSafe, Pauline plays a key role in designing clear, educational content on savings, investments and personal finance. Passionate about financial education, Pauline strives, with every piece of content she oversees, to provide reliable, transparent and unbiased information for independent and informed financial management. To this end, she has tested over 100 trading platforms to help internet users make the right choices.