The Bank of Nova Scotia (BNS) RBC Capital Markets Canadian Bank CEO Conference 2025 summary

Strategic transactions and capital allocation

• Executed a capital-neutral, earnings-accretive transaction in Colombia, retaining a minority stake in the second-largest bank and unlocking $200 million in annual synergies.

• Ongoing sale of CrediScotia expected to close within the year, with further minor optimizations in consumer finance.

• Capital position expected to remain in the 12.5%-13% CET1 range post-transactions, providing flexibility for investment or share buybacks in late 2025 and 2026.

• Disciplined capital allocation is shifting focus from developing to developed markets, especially the North American corridor.

Operational transformation and regionalization

• Transitioning from country-specific to regional management in Central America and Colombia, centralizing decision-making to drive cost efficiencies and improve client experience.

• Technology investments, such as CAD 140-150 million in cash management, are self-funded by eliminating duplication across geographies.

• Productivity ratio improved from 54% to 51% in 2024, with a target of 48%.

• Regionalization is in early stages, with 2025 as a transition year and 6%-8% IB earnings growth targeted from 2026-2028.

North American corridor and business outlook

• Strong focus on building a connected Canada-U.S.-Mexico corridor, with capital deployment in Mexico being cautious amid trade uncertainties.

• Cash management is a key growth area, with new propositions in Canada and Mexico and ongoing development in the U.S., aiming for integration within a year.

• Earnings growth of 5%-7% expected in 2025, with double-digit growth in 2026, driven by Canadian, wealth, and GBM businesses.