Bank Of Nova Scotia (BNS) AI Stock Analysis

• Market Cap: $123.31B
• Dividend Yield: 4.32%
• Average Volume (3M): 4.40M
• Price to Earnings (P/E): 17.1
• Beta (1Y): 0.74
• Revenue Growth: -3.65%
• EPS Growth: -1.73%
• Country: CA
• Employees: 88,722
• Sector: Financial
• Sector Strength: 70
• Industry: Banks - Diversified
• EPS (TTM): 1.93
• Shares Outstanding: 1,236,305,800
• 10 Day Avg. Volume: 3,781,972
• 30 Day Avg. Volume: 4,401,743
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $100.89
• Price Target Upside: 1.05% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: C$113.00 ▲(13.17% Upside)

The Bank of Nova Scotia's stock is rated positively due to strong financial performance and strategic execution, as highlighted in the earnings call. Technical indicators support a bullish outlook, while the valuation remains attractive with a solid dividend yield. However, high leverage and declining free cash flow growth are areas to monitor.

Positive Factors

Revenue Growth

The significant year-over-year revenue increase indicates strong business performance and market demand, supporting long-term growth prospects.

Strategic Initiatives

Successful strategic initiatives like increased closed referrals enhance client relationships and revenue streams, strengthening competitive positioning.

Capital and Shareholder Returns

Strong capital ratios and share repurchases reflect robust financial health and commitment to shareholder value, supporting long-term stability.

Negative Factors

High Leverage

High leverage can increase financial risk, especially if interest rates rise, potentially impacting the bank's long-term financial flexibility.

Increased Loan Loss Provisions

Rising loan loss provisions may signal deteriorating credit quality, posing a risk to future profitability and financial health.

Decline in Canadian Banking Earnings

Declining earnings in Canadian Banking due to higher PCLs and lower margins could impact overall profitability and market position.

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, International Banking, Global Wealth Management, and Global Banking and Markets. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses, including automotive financing solutions to dealers and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides online, mobile, and telephone banking services. The company operates a network of 954 branches and approximately 3,766 automated banking machines in Canada; and approximately 1,300 branches and a network of contact and support center internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.

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 commercial lending. Additionally, the bank earns substantial fees from wealth management services, investment banking activities, and transaction-based services such as account maintenance and credit card fees. Scotiabank also benefits from trading and investment income derived from its capital markets division, which engages in trading securities and providing advisory services. Collaborations with other financial institutions and technology partners enhance Scotiabank's service offerings and operational efficiencies, contributing to its overall revenue generation. Furthermore, the bank's international operations, particularly in growth markets, provide additional avenues for earnings, helping to diversify its revenue base.

Bank Of Nova Scotia Financial Statement Overview

Summary

The Bank of Nova Scotia maintains a robust financial position with strong revenue growth and stable cash flows. While profitability margins appear pressured, the bank's solid equity base and cash flow suggest resilience. However, high leverage remains a strategic focus area to mitigate potential financial risks in fluctuating market conditions.

Income Statement

The Bank of Nova Scotia has shown stable revenue growth over the years, with a notable increase in total revenue for the TTM compared to previous years. However, the net profit margin has been fluctuating, and the EBIT margin for the TTM is lower compared to historical figures, indicating some operational challenges. Overall, the income statement reflects steady revenue growth but with potential profitability pressures.

Balance Sheet

The company's balance sheet is characterized by strong equity, with a relatively stable debt-to-equity ratio. The equity ratio is moderate, reflecting a solid foundation amidst high total assets. However, the total debt remains high, which could pose risks if economic conditions change unfavorably. The bank's strong equity position provides a cushion, but leveraging remains an area to watch.

Cash Flow

The Bank of Nova Scotia demonstrates a strong cash flow position, with a healthy free cash flow to net income ratio and consistent operating cash flow. The free cash flow has grown, indicating efficient capital management. The discrepancy between operating cash flow and net income ratio suggests solid cash generation capabilities, which is a positive indicator of liquidity and financial health.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	73.18B	29.48B	31.79B	31.15B	30.91B
Gross Profit	32.38B	29.56B	31.79B	31.15B	30.91B
EBITDA	12.11B	10.56B	0.00	14.20B	14.00B
Net Income	7.79B	7.76B	7.41B	9.92B	9.62B
Balance Sheet
Total Assets	1.46T	1.41T	1.41T	1.35T	1.18T
Cash, Cash Equivalents and Short-Term Investments	108.10B	108.17B	140.83B	119.31B	120.05B
Total Debt	236.69B	300.67B	313.81B	310.86B	245.66B
Total Liabilities	1.37T	1.33T	1.33T	1.27T	1.11T
Stockholders Equity	86.87B	82.37B	76.93B	73.22B	70.80B
Cash Flow
Free Cash Flow	10.14B	15.16B	31.28B	16.37B	-13.27B
Operating Cash Flow	10.49B	15.65B	11.47B	16.94B	-12.81B
Investing Cash Flow	-19.00B	-7.45B	-30.04B	-11.29B	14.70B
Financing Cash Flow	9.18B	-8.84B	16.71B	-4.58B	-2.78B

Bank Of Nova Scotia Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.85
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNS, the sentiment is Positive. The current price of 99.85 is above the 20-day moving average (MA) of 99.55, above the 50-day MA of 95.93, and above the 200-day MA of 80.23, indicating a bullish trend. The MACD of 1.33 indicates Positive momentum. The RSI at 58.75 is Neutral, neither overbought nor oversold. The STOCH value of 27.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNS.

Bank Of Nova Scotia Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BNS	77 Outperform	$123.31B	17.09	9.19%	4.32%	-3.65%	-1.73%
NA	76 Outperform	C$68.28B	17.19	13.53%	2.64%	7.50%	-5.28%
CM	74 Outperform	C$116.53B	14.59	13.69%	3.07%	-3.13%	18.22%
TD	74 Outperform	$220.87B	11.30	16.78%	3.34%	3.07%	144.41%
RY	73 Outperform	C$329.68B	16.70	15.28%	2.58%	2.13%	25.16%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
BMO	66 Neutral	C$130.22B	16.03	10.10%	3.61%	-1.30%	20.41%

Bank Of Nova Scotia Corporate Events

Scotiabank Reports Strong Fourth Quarter and Fiscal 2025 Results

Scotiabank reported a net income of $7,758 million for fiscal year 2025, slightly down from $7,892 million in 2024, with a diluted EPS of $5.67. However, the fourth quarter showed a significant improvement with a net income of $2,206 million, up from $1,689 million in the same period last year, and a diluted EPS of $1.65. The bank’s adjusted net income for the year was $9,510 million, indicating strong performance across its business lines, particularly in Global Wealth Management and Global Banking and Markets. The bank’s strategic restructuring and focus on strengthening its balance sheet and improving its loan-to-deposit ratio contributed to these results.

The most recent analyst rating on (TSE:BNS) stock is a Buy with a C$106.00 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.

Scotiabank Declares Dividend and Updates Share Purchase Plan

Scotiabank has announced a dividend of $1.10 per share on its outstanding common shares, payable on January 28, 2026, to shareholders recorded by January 6, 2026. The bank continues to allow shareholders to receive dividends in the form of common shares through its Shareholder Dividend and Share Purchase Plan, with purchases made on the open market instead of issuing new shares from treasury. This decision reflects Scotiabank’s ongoing strategy to manage its share distribution and market presence effectively.

The most recent analyst rating on (TSE:BNS) stock is a Buy with a C$106.00 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.

Scotiabank Completes Transfer of Operations to Davivienda Group

Scotiabank has completed the transfer of its banking operations in Colombia, Costa Rica, and Panama to Davivienda, resulting in a new entity, Davivienda Group, where Scotiabank holds a 20% stake. This strategic move is expected to enhance Scotiabank’s international banking strategy by leveraging Davivienda’s regional expertise and Scotiabank’s global capabilities, aiming to improve profitability and expand their client base. The transaction is anticipated to result in a CAD $300 million after-tax loss in Q1 2026 due to foreign currency translation losses, but will also benefit Scotiabank’s CET1 ratio by reducing risk-weighted assets.

The most recent analyst rating on (TSE:BNS) stock is a Buy with a C$106.00 price target. To see the full list of analyst forecasts on Bank Of Nova Scotia stock, see the TSE:BNS Stock Forecast page.