The Bank of Nova Scotia (BNS) Q4 2024 earnings summary

Executive summary

• Fiscal 2024 delivered net income of $7.9B, adjusted net income of $8.6B, and 6% net income growth, with a focus on sustainable, profitable growth and a value-over-volume strategy.

• Diluted EPS for 2024 was $5.87 (adjusted: $6.47); Q4 net income was $1.7B (adjusted: $2.1B), with Q4 EPS of $1.22 (adjusted: $1.57).

• Strategic initiatives included digital transformation, retail client growth, capital optimization, and investments in talent and technology.

• Enhanced disclosure on strategic metrics and cultural transformation initiatives were rolled out.

• Strong capital position maintained with CET1 ratio at 13.1%.

Financial highlights

• Total revenue for 2024 was $33.7B, up 5% year-over-year; net interest income was $19.3B, up 5%; Q4 revenue was $8.5B, up 3%.

• Adjusted diluted EPS for 2024 was $6.47; ROE was 11.3%; return on tangible common equity was 13.7%.

• Expenses rose 3% (adjusted up 4%), mainly from higher personnel and technology costs.

• Provision for credit losses for 2024 was $4.1B, up $629M year-over-year; Q4 provision was $1.03B.

• CET1 capital ratio at year-end was 13.1%, up from 13.0% last year.

Outlook and guidance

• 2025 earnings growth expected in the 5%-7% range, excluding any benefit from KeyCorp investment.

• Revenue growth to be driven by net interest income, with modest expense growth and positive operating leverage.

• Higher tax rate (23%-24%) and elevated PCLs anticipated in 2025.

• Double-digit EPS growth targeted for 2026, including KeyCorp contribution.

• Management remains focused on client primacy, profitability, and strong capital ratios.