The Bank of Nova Scotia (BNS) investor relations material

Opening remarks and industry context

• Emphasized the importance of a resilient financial system as foundational to economic growth and innovation.

• Highlighted current challenges: market volatility, geopolitical uncertainty, and rapid technological change, especially AI.

• Noted Canadian banks' resilience and outperformance versus global peers, fostering investor confidence.

Financial performance and strategic progress

• Achieved targeted 14% ROE two years ahead of schedule, driven by improvements across all business lines.

• Balance sheet strengthened: LDR improved from 116% to 103%, wholesale funding costs down, and performing allowances up by CAD 1 billion over three years.

• International ROE improved by 300 bps, wealth business grew at 17% CAGR, and market share rose from sixth to third.

• Canadian banking shifted focus from mortgage/auto to mid-market commercial and small business, boosting ROE.

Drivers of Canadian banking performance

• Key drivers: risk-adjusted margin, business mix, and efficiency.

• Growth in small business and mid-market segments, with risk-adjusted margin up 10 bps YoY.

• Premium credit card acquisitions up to 45%, insurance fee income growing at 10%, and four quarters of positive operating leverage.

• Increased technology investment enabled AI adoption and further efficiency gains.