Strong Noninterest Revenue Growth …

• Adjusted Earnings: $2.2 billion, or $1.76 per share.

• Noninterest Revenue Growth: 15% year-over-year.

• Provisions for Credit Losses: Approximately $1.2 billion, PCL ratio of 60 basis points.

• Capital Ratio Improvement: Improved by approximately 140 basis points since the end of 2022.

• Additional Allowances for Credit Losses: $1.6 billion built since the end of 2022, with $350 million added this quarter.

• Return on Equity (ROE): 11.8% for Q1.

• Global Wealth Management Earnings: $414 million.

• Assets Under Administration (AUA): Exceeded $730 billion.

• Global Banking and Markets Earnings: $517 million, up 33% year-over-year.

• Canadian Banking Earnings: $914 million, down 6% year-over-year.

• International Banking Earnings: $657 million, down 7% year-over-year.

• Common Equity Tier 1 (CET1) Ratio: 12.9%.

• Net Interest Income Growth: 8% year-over-year.

• Noninterest Income: $4.2 billion, up 15% year-over-year.

• Operating Leverage: Positive 2.8%.

• Productivity Ratio: 54.5%, improved 160 basis points sequentially.

Release Date: February 25, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

• Bank of Nova Scotia (NYSE:BNS) reported adjusted earnings of $2.2 billion, or $1.76 per share, with a 15% year-over-year growth in noninterest revenue.

• The bank improved its capital ratio by approximately 140 basis points since the end of 2022 and built $1.6 billion in additional allowances for credit losses.

• Global Wealth Management delivered $414 million in earnings, with assets under administration exceeding $730 billion.

• Global Banking and Markets had a strong start to the year, with earnings up 33% year over year, driven by capital markets businesses.

• The bank’s productivity ratio improved to 51%, with a 4% revenue growth and disciplined 1% expense growth year over year.

• Provisions for credit losses remain elevated due to higher interest rates, inflation, and geopolitical uncertainty.

• Canadian Banking faced higher credit provisions due to portfolio migration and a cautious consumer outlook.

• The bank’s CET1 capital ratio decreased by 20 basis points quarter over quarter.

• International Banking earnings were down 7% from last year, despite a 5% sequential increase.

• The potential impact of tariffs and geopolitical uncertainty poses risks to future economic growth and financial performance.

Q: Can you provide an outlook on credit provisions, particularly in light of potential tariffs and interest rate changes? A: Phil Thomas, Chief Risk Officer, noted that while there is some softness in the Canadian retail portfolio, customers are benefiting from rate cuts, especially in variable rate mortgages. Provisions are expected to trend down in the latter half of the year, assuming no significant tariff impacts.

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