Company Reports

Bank of Nova Scotia is the third-largest Canada-based bank by assets. It is Canada’s most international bank, as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high-single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks, as we saw during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure that is less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank reach better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns. International loan growth was still lackluster in 2026, but segment return on equity has improved by 260 basis points compared with two years ago.

Bank of Nova Scotia reported strong fiscal third-quarter results, with adjusted net income growing 20% year over year. The results translated into an adjusted return on equity of 14.2%, reaching its medium-term target of 14%-plus ahead of its original fiscal 2028 plan.

Bank of Nova Scotia is the third-largest Canada-based bank by assets. It is Canada’s most international bank, as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high-single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks, as we saw during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure that is less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank reach better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns. International loan growth was still lackluster in the first half of 2026, but segment return on equity has improved by 240 basis points compared with two years ago.

Bank of Nova Scotia reported strong fiscal second-quarter results, with adjusted net income growing 29% year over year, excluding divested businesses. The results translated into an adjusted return on equity of 13.2%, up 270 basis points year over year and below the medium-term target of 14%-plus.

Based on a regulatory filing on March 20, Bank of Nova Scotia is seeking to acquire additional voting shares of KeyCorp, up to 19.99%, pending regulatory approval.

Bank of Nova Scotia reported strong fiscal first-quarter results, with adjusted net income growing 15% year over year, excluding divested businesses. The results translated into an adjusted return on equity of 13.1%, up 110 basis points year over year and below the medium-term target of 14%-plus.

Bank of Nova Scotia's global banking and markets segment and global wealth management segment delivered strong performance in fiscal 2025 with earnings growth of 18% and 30%, respectively.

Bank of Nova Scotia is the third-largest Canadian-based bank by assets. It is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks as we've seen during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure that are less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank achieving better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns. We expect more loan growth in 2026 as the bank has mostly finished its international optimization in 2025.

Bank of Nova Scotia reported good fiscal fourth-quarter results, mostly driven by strong fee income growth. Adjusted earnings per share of CAD 1.93 rose 23% from a year ago. Full-year adjusted return on equity was 11.8%, up 50 basis points year over year and below the medium-term target of 14%-plus.

Bank of Nova Scotia is the third-largest Canadian-based bank by assets. It is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks as we've seen during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure that are less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank achieving better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns. We expect more loan growth in 2026 as the bank is close to finishing international optimization in 2025.

Bank of Nova Scotia reported solid fiscal third-quarter results, driven by strong revenue growth and lower provisioning. Adjusted EPS was CAD 1.88, up 15% from the year-ago period. That said, there is still uncertainty in the Canadian economy, as a trade deal has yet to be reached with the US.

Bank of Nova Scotia reported slightly disappointing second-quarter results, mostly driven by a provisioning increase for the Canadian segment. Adjusted EPS was CAD 1.52, down 4% from a year ago. Note that the trajectory of the Canadian economy has heightened uncertainty due to tariffs.

Bank of Nova Scotia is the third-largest Canadian-based bank by assets and it is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks as we've seen during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure to businesses and geographies that are less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank achieving better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns.

On April 2, US President Donald Trump announced sweeping tariffs on goods imported from the rest of the world. Canada and Mexico were spared from these new tariffs; however, the previously announced tariffs on Canada are still in place, and the 25% global auto tariff has taken effect.

After taking a fresh look at Bank of Nova Scotia, we are decreasing our fair value estimates slightly to CAD 76 and USD 53, from CAD 77 and USD 54 previously. We maintain our narrow moat rating and Standard Morningstar Capital Allocation Rating. We view shares as slightly undervalued to fairly valued at current market prices.

Bank of Nova Scotia is the third-largest Canadian-based bank by assets and it is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America), and a high single-digit percentage from the US. Scotiabank’s Latin America exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks as we've seen during the pandemic. The bank has been reworking its Latin America footprint, reducing exposure to businesses and geographies that are less favorable and also aiming to achieve larger scale in some countries. We would like to see Scotiabank achieving better risk-adjusted margins in these markets as credit costs often weigh on the bank’s total returns.

Bank of Nova Scotia reported decent underlying results, with net revenue increasing 11.1% from last year to CAD 9.37 billion. However, net income fell to CAD 993 million from CAD 2.2 billion last year due to a CAD 1.36 billion loss on the sale of its Colombia, Costa Rica, and Panama operations.

On Feb. 1, the Trump administration announced a 25% tariff on Canadian goods and a 10% tariff on Canadian oil and gas goods. The Canadian government announced a retaliatory tariff later on Feb. 1, starting with 25% tariffs on CAD 30 billion of US products like beverages, cosmetics, and paper products (effective on Feb. 4) and on an additional CAD 125 billion of US goods including cars and trucks (effective in three weeks).

Bank of Nova Scotia is the third-largest Canadian-based bank by assets and one of six Canadian banks that collectively hold almost 90% of the nation's banking deposits. It is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America, namely Mexico, Peru, and Chile), and a single-digit percentage from the United States. Its domestic operations are more concentrated in mortgages and auto lending, with leading market share in autos. The bank has been expanding its domestic wealth operations significantly with its acquisitions of MD Financial and Jarislowsky Fraser, making it the third-largest active manager in Canada. The bank has been reworking its Latin America footprint, making acquisitions in markets it likes (Chile, Colombia) while reducing exposure to businesses and geographies that are less favorable as it attempts to consolidate better share within the area. The international exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks, as we've seen during the pandemic. While theoretically beneficial, the bank's international exposure has tended to be more of a headwind than tailwind.

Bank of Nova Scotia is the third-largest Canadian-based bank by assets and one of six Canadian banks that collectively hold almost 90% of the nation's banking deposits. It is known as Canada’s most international bank as it derives a little over half of its revenue from Canada, over 40% from international operations (primarily Latin America, namely Mexico, Peru, and Chile), and a single-digit percentage from the United States. Its domestic operations are more concentrated in mortgages and auto lending, with leading market share in autos. The bank has been expanding its domestic wealth operations significantly with its acquisitions of MD Financial and Jarislowsky Fraser, making it the third-largest active manager in Canada. The bank has been reworking its Latin America footprint, making acquisitions in markets it likes (Chile, Colombia) while reducing exposure to businesses and geographies that are less favorable as it attempts to consolidate better share within the area. The international exposure gives the bank the potential for higher growth and return opportunities compared with peers, but it also exposes the bank to more risks, as we've seen during the pandemic. While theoretically beneficial, the bank's international exposure has tended to be more of a headwind than tailwind.