Scotiabank Sets Ambitious Earnings Growth Target and Launches Share Buyback

Published 1 days agoBNS

Scotiabank Sets Ambitious Earnings Growth Target and Launches Share Buyback

Scotiabank has announced its goal to achieve a 5-7% increase in earnings per share by 2025. The bank's strategy to reach this target includes a strengthened balance sheet and the initiation of a share buyback program. Scotiabank's recent emphasis on growth reflects its confidence in leveraging positive financial strategies and initiatives. This EPS growth ambition illustrates the bank's optimistic outlook on its financial performance.

Since the end of 2022, Scotiabank has bolstered its capital ratio by roughly 140 basis points, enhancing its financial stability. Additionally, the bank is preparing to kick off a share buyback program later this year, which aims to return capital to shareholders and streamline capital deployment. As part of its strategic moves, Scotiabank's investment in KeyCorp is also expected to be a significant earnings booster, potentially adding more than $0.25 per share in the first full year.

The bank's strategic initiatives have not gone unnoticed. RBC Capital has increased its price target for Scotiabank to C$74 from C$65, highlighting the potential for solid core EPS growth in 2025. These steps underscore the bank's strategic focus on optimally deploying capital and pursuing growth opportunities to enhance value for shareholders. Reuters reported that these developments showcase Scotiabank's proactive approach to reinforcing its market position and delivering long-term value.

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