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

Executive summary

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

• Strategic priorities included retail client growth, digital adoption, capital deployment to priority businesses, and strengthening the balance sheet, maintaining a CET1 ratio of 13.1%.

• Record results in Global Wealth Management and International Banking, with strong deposit growth and improved client relationships.

• Transformation initiatives included portfolio remixing, de-emphasizing indirect lending, and investments in digital and client experience.

• Q4 net income rose 25% year-over-year to $1.7B, with adjusted net income up 29%.

Financial highlights

• Adjusted diluted EPS for 2024 was $6.47; diluted EPS was $5.87; return on equity was 11.3% (adjusted); return on tangible common equity was 13.7%.

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

• 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 PCL was $1.03B.

• CET1 capital ratio ended at 13.1%, up from 13.0% last year.

Outlook and guidance

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

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

• Higher tax rate (23%-24%) expected due to global minimum tax and reduced inflation benefit in international markets.

• International Banking earnings expected to be lower in 2025 due to weaker currencies and slower economic growth.

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