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- **Record Financials**: Q4 2025 EPS up 23% YoY to CAD 1.93, with full-year EPS +10% to CAD 7.09. ROE improved to 12.5%.
- **Strategic Momentum**: Client primacy drives 18% referral growth. 2026 tech spend focuses on AI and transaction banking.
- **Double-Digit Growth**: 2026 EPS expected +10-12%, driven by Canadian Banking PTPP expansion and fee income.
- **Risk Management**: PCL normalization in H2 2026; ACL ratio at 98 bps. Private credit portfolio rated A/A+ with minimal stress risk.
- **Capital Allocation**: Share buybacks and organic growth prioritized over M&A.

**【CEO Summary Section】**
- **Strong Financial Performance**: Q4 2025 earnings of CAD 2.6 billion (CAD 1.93 EPS), up 23% YoY. Full-year EPS grew 10% to CAD 7.09, with ROE at 12.5% (190 bps YoY improvement). Efficiency ratio improved to 54.3%.
- **Strategic Initiatives**: Client primacy drove 18% growth in closed referrals (CAD 15 billion). Technology spend in 2026 focuses on AI, transaction banking, and fraud monitoring. Restructuring charges (CAD 268 million) aim to streamline operations and invest in revenue-generating staff.
- **Segment Growth**: Canadian Banking earnings up 1% YoY; Global Wealth Management (GWM) up 17% (AUM +16% to CAD 430 billion). Global Banking & Markets (GBM) earnings up 30% (ROE +320 bps).
- **2026 Outlook**: Double-digit EPS growth driven by revenue growth, moderating PCLs, and lower tax rates. Focus on fee income, balance sheet velocity, and U.S. expansion.

**【CFO Financial Commentary】**
- **Q4 Results**: Adjusted EPS CAD 1.93 (21% YoY), ROE 12.5%. Net interest income +13% YoY (NIM +25 bps). Non-interest income +16% YoY (wealth fees, underwriting).
- **Segment Performance**: Canadian Banking pre-tax pre-provision (PTPP) +3% YoY; GWM PTPP +17% (fee growth). GBM earnings +30% (trading, advisory fees). International Banking (IB) +1% YoY (Mexico, Brazil growth).
- **2026 Guidance**: Double-digit EPS growth, positive operating leverage. Canadian Banking PTPP +10-12%, GWM +15%, GBM modest growth. CET1 ratio maintained above 13%.

**【Risk Overview】**
- **PCLs**: Q4 PCL ratio 58 bps (43 bps in Canada). Impaired PCLs +3 bps QoQ due to retail stress. Full-year PCL ratio 62 bps (54 bps impaired). 2026 outlook: impaired PCLs 45-55 bps.
- **Credit Quality**: 94% of Canadian retail loans secured; 90+ day mortgage delinquency +4 bps QoQ (GTA-driven). Commercial PCLs stable, IB PCLs +5 bps QoQ (Chile consumer finance).
- **Resilience**: ACL ratio +10 bps YoY to 98 bps. Restructuring benefits offset by tech investments. 2026 PCL normalization expected post-H1 2026.

**【Q&A Highlights】**
- **EPS Growth Drivers**: Canadian Banking PTPP +10-12% (deposit mix, margin expansion). GWM fee growth, GBM trading revenue. Buybacks contribute 100-150 bps EPS.
- **Capital Allocation**: Priority on organic growth (GBM, Canada), share buybacks, and small tuck-in acquisitions. 2025 share repurchases: 10.8 million shares.
- **U.S. Strategy**: GTB cash management expansion (15,000+ clients in 2025). U.S. GBM contribution 50% in 2025, targeting higher share. No P&C expansion plans.
- **Private Credit**: On-balance-sheet exposure CAD 31 billion (half in private credit, A/A+ rated). Stress tests show minimal losses relative to revenue.

Bank of Nova Scotia (BNS) Q4 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

BNS

BNS fundamentals

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