The Bank of Nova Scotia (BNS) Q4 2025 earnings summary

Executive summary

• Fiscal 2025 adjusted net income rose 10% year-over-year to $9,510 million, with adjusted EPS at $7.09 and adjusted ROE at 11.8%.

• Q4 2025 adjusted net income increased 21% year-over-year to $2,558 million, with adjusted EPS at $1.93 and adjusted ROE at 12.5%.

• All business lines reported year-over-year earnings growth in Q4, led by Global Wealth Management and Global Banking and Markets.

• Strategic divestitures in Colombia, Costa Rica, Panama, and Peru completed, impacting International Banking and Global Wealth Management earnings.

• Reported results were impacted by $352 million in after-tax adjusting items, including restructuring and legal provisions.

Financial highlights

• Fiscal 2025 reported net income was $7,758 million, down from $7,892 million in 2024; adjusted net income was $9,510 million, up 10% year-over-year.

• Q4 2025 reported net income was $2,206 million, up 31% year-over-year; adjusted net income was $2,558 million, up 21%.

• Total revenue for Q4 2025 was $9,803 million, up 15% year-over-year, driven by higher net interest and non-interest income.

• Expenses increased 14% (adjusted up 9%), mainly due to higher personnel and technology costs.

• CET1 capital ratio at year-end was 13.2%, with 10.8 million shares repurchased.

Outlook and guidance

• Management remains focused on achieving medium-term objectives: 7%+ EPS growth, 14%+ ROE, positive operating leverage, and strong capital ratios.

• Strong earnings growth expected in 2026, driven by net interest income, non-interest revenue, and lower credit loss provisions.

• Canadian banking to deliver double-digit earnings growth, with margin expansion and fee growth; PCLs expected to normalize.

• Interest rate sensitivity analysis shows a 100 bps parallel shift would impact NII by ~$236M over 12 months.

• Macroeconomic scenarios anticipate moderate GDP growth in core markets, with Canada at 1.4% and the US at 1.6% for 2026.