Bank Of Nova Scotia (TSE:BNS)
TSX:BNS
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Bank Of Nova Scotia
(TSX:BNS)
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Rating:62Neutral
Price Target:
C$106.00
▲(12.66% Upside)
Action:DowngradedDate:03/04/26
The score is driven primarily by mixed financial performance—solid profitability but pressured by a sharp TTM revenue decline, high leverage, and volatile/free-cash-flow deterioration. Valuation is a relative support due to a mid-range P/E and strong dividend yield. Technicals are neutral-to-mixed, and the earnings call was broadly positive on guidance and efficiency, tempered by elevated credit losses and Canadian banking pressure.
Positive Factors
Diversified Business Model
Scotiabank's diversified business mix—personal/commercial banking, wealth, capital markets and sizeable international operations—reduces reliance on any single revenue stream. This structural breadth supports more stable earnings through cycles and provides multiple organic growth levers over the next 2–6 months.
Negative Factors
Top-line Contraction
A near-15% TTM revenue decline is a structural concern: persistent top-line weakness constrains operating leverage and the ability to sustain margins long-term. Unless revenue growth re-accelerates, profitability gains risk being transitory as cost base and credit volatility can offset margin improvements.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified Business Model
Scotiabank's diversified business mix—personal/commercial banking, wealth, capital markets and sizeable international operations—reduces reliance on any single revenue stream. This structural breadth supports more stable earnings through cycles and provides multiple organic growth levers over the next 2–6 months.
Read all positive factors
Bank Of Nova Scotia (BNS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$115.97B
Dividend Yield4.32%
Average Volume (3M)3.80M
Price to Earnings (P/E)14.7
Beta (1Y)0.69
Revenue Growth-3.65%
EPS Growth-1.73%
CountryCA
Employees88,722
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)1.93
Shares Outstanding1,232,534,000
10 Day Avg. Volume4,258,119
30 Day Avg. Volume3,802,752
Financial Highlights & Ratios
PEG Ratio-8.73
Price to Book (P/B)1.32
Price to Sales (P/S)1.56
P/FCF Ratio11.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$107.48Price Target Upside14.23% Upside
Rating ConsensusHold
Number of Analyst Covering12
EPS Forecast (FY)8.19
Revenue Forecast (FY)C$39.54B
Bank Of Nova Scotia Business Overview & Revenue Model
Company Description
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates in four segments: Canadian Banking, Internation...
How the Company Makes Money
Scotiabank generates revenue through multiple key streams. The primary source is net interest income, which arises from the difference between interest earned on loans and interest paid on deposits. This includes personal loans, mortgages, and com...
Bank Of Nova Scotia Earnings Call Summary
Earnings Call Date:Dec 02, 2025
(Q1-2026)
| % Change Since: |
Next Earnings Date:Jun 02, 2026
Earnings Call Sentiment Positive
The call presented multiple clear strengths: double-digit revenue growth, margin expansion, improved pretax pre-provision profit, strong segment-level ROEs (notably Canadian Banking, Wealth and GBM), solid CET1 capital and an active capital-deployment program. At the same time, credit-related headwinds were prominent — elevated impaired PCLs, higher allowances and increases in gross impaired loans, with stress concentrated in unsecured retail, certain COVID-era mortgage vintages and pockets of international consumer finance (Chile/Cencosud) along with some lumpy GBM files. Management reiterated guidance that impaired PCLs are expected to be elevated in the near term but trend lower later in the year and emphasized continued investments in AI and client-facing capabilities. Overall the operational momentum and financial performance outweigh the credit and deposit mix challenges in this quarter, but credit remains a watch area for the remainder of the year.Positive Updates
Strong Adjusted Earnings and EPS Growth
Adjusted earnings of $2.7 billion and diluted EPS of $2.05; EPS increased 16% year-over-year.
Negative Updates
Elevated Credit Provisions and Impaired PCLs
All-bank provisions (PCLs) were approximately $1.1–1.2 billion this quarter (management cited ~60 bps all-bank PCLs); impaired PCLs ~56–58 bps and performing PCLs ~3 bps. Management expects impaired PCLs to remain elevated in the near term before improving later in the year.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Adjusted Earnings and EPS Growth
Adjusted earnings of $2.7 billion and diluted EPS of $2.05; EPS increased 16% year-over-year.
Read all positive updates
Company Guidance
Management reiterated guidance that the bank is on track to hit its 14%+ medium‑term ROE target one year ahead of plan (Q1 ROE 13%, up 120 bps YoY) while maintaining strong capital (CET1 13.3%); they expect Canadian Banking earnings to grow by double digits in fiscal 2026 and ROE expansion across every business (largest lift from Canadian Banking). Impaired PCLs guidance remains “high‑40s to mid‑50s bps” for the year, with impaired PCLs elevated in H1 then gradually improving in H2 (Q1 impaired PCLs ~56–58 bps; all‑bank PCLs ≈$1.2bn; performing PCLs 3 bps; ACL ↑ ~$200m to ≈$7.2bn; ACL ratio 94 bps). Management reiterated capital‑deployment priorities (organic growth then buybacks), noted repurchases of 4.9M shares in Q1 (≈15.7M total repurchased YTD) and an expected NCIB renewal in May, and flagged margin upside in 2026 driven by deposit mix (bank NII +13% YoY, revenue +11% YoY, pretax pre‑provision profit +16% YoY, productivity ratio improved 200 bps to 52%, operating leverage +4.2%); technology spend was ~ $1.3bn (up $38m YoY), Ask AI processed >450,000 Q1 queries (over 60% of 2025 queries) and an AML AI pilot cut alert volumes ~37%.Bank Of Nova Scotia Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.80B | 73.18B | 29.48B | 31.79B | 31.15B | 30.91B |
| Gross Profit | 32.71B | 32.38B | 29.56B | 31.79B | 31.15B | 30.91B |
| EBITDA | 12.85B | 10.56B | 10.56B | 0.00 | 14.20B | 14.00B |
| Net Income | 8.93B | 7.79B | 7.76B | 7.41B | 9.92B | 9.62B |
Balance Sheet | ||||||
| Total Assets | 1.48T | 1.46T | 1.41T | 1.41T | 1.35T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 8.73B | 108.10B | 108.17B | 140.83B | 119.31B | 120.05B |
| Total Debt | 255.68B | 236.69B | 300.67B | 313.81B | 310.86B | 245.66B |
| Total Liabilities | 1.39T | 1.37T | 1.33T | 1.33T | 1.27T | 1.11T |
| Stockholders Equity | 87.59B | 86.87B | 82.37B | 76.93B | 73.22B | 70.80B |
Cash Flow | ||||||
| Free Cash Flow | 5.05B | 10.14B | 15.16B | 31.28B | 16.37B | -13.27B |
| Operating Cash Flow | 5.62B | 10.49B | 15.65B | 11.47B | 16.94B | -12.81B |
| Investing Cash Flow | -67.44B | -19.00B | -7.45B | -30.04B | -11.29B | 14.70B |
| Financing Cash Flow | 60.81B | 9.18B | -8.84B | 16.71B | -4.58B | -2.78B |
Bank Of Nova Scotia Technical Analysis
Negative
94.09
Price Trends
100.74
Negative
98.95
Negative
89.79
Positive
Market Momentum
-1.83
Negative
36.74
Neutral
57.89
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNS, the sentiment is Negative. The current price of 94.09 is below the 20-day moving average (MA) of 96.78, below the 50-day MA of 100.74, and above the 200-day MA of 89.79, indicating a neutral trend. The MACD of -1.83 indicates Negative momentum. The RSI at 36.74 is Neutral, neither overbought nor oversold. The STOCH value of 57.89 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:BNS.
Bank Of Nova Scotia Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
69 Neutral | C$119.44B | 9.41 | 14.75% | 3.07% | -3.13% | 18.22% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
66 Neutral | C$307.04B | 13.71 | 15.37% | 2.58% | 2.13% | 25.16% | |
66 Neutral | C$68.73B | 12.62 | 12.83% | 2.64% | 7.50% | -5.28% | |
64 Neutral | C$214.35B | 13.22 | 17.26% | 3.34% | 3.07% | 144.41% | |
62 Neutral | C$115.97B | 14.70 | 10.41% | 4.32% | -3.65% | -1.73% | |
60 Neutral | C$129.26B | 13.18 | 10.47% | 3.61% | -1.30% | 20.41% |
* Financial Sector Average
TSE:BNS
Bank Of Nova Scotia
94.09
29.40
45.45%
TSE:BMO
Bank Of Montreal
183.03
51.09
38.72%
TSE:CM
Canadian Bank of Commerce
128.90
50.77
64.99%
TSE:RY
Royal Bank Of Canada
219.85
62.87
40.05%
TSE:TD
Toronto Dominion Bank
126.87
44.11
53.30%
TSE:NA
National Bank of Canada
177.49
61.47
52.98%
Bank Of Nova Scotia Corporate Events
Business Operations and StrategyFinancial Disclosures
Scotiabank Kicks Off 2026 With Strong Q1 Earnings and Broad-Based Growth
Positive
Feb 24, 2026
Scotiabank reported a strong start to 2026, with first-quarter net income rising to $2.3 billion from $993 million a year earlier, largely reflecting the absence of prior-year impairment charges tied to its exit from certain Latin American operati...
Business Operations and StrategyDividends
Scotiabank Declares Quarterly Dividend and Maintains Market-Based DRIP Purchases
Positive
Feb 24, 2026
Scotiabank has declared a quarterly dividend of $1.10 per common share, payable on April 28, 2026, to shareholders of record as of April 7, 2026. The bank continues to offer a dividend reinvestment option through its Shareholder Dividend and Share...
Business Operations and StrategyFinancial Disclosures
Scotiabank Projects Up to CAD $89 Million Q1 Boost from KeyCorp Stake
Positive
Jan 21, 2026
Scotiabank said it expects to record approximately CAD $81 million in net income in its first quarter of 2026 from its ownership stake in U.S. regional lender KeyCorp, reflecting its share of KeyCorp’s fourth-quarter 2025 results after fundi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.