Bank Of Nova Scotia (BNS)

Price$93.45Cached quoteAs of 2026-09-13 04:00 UTC

AI: Overvalued

Price checkThe earnings recovery is real, but the current valuation already assumes much of it continues.

At the observed New York price, converted at roughly C$1.385 per U.S. dollar, the shares are worth about C$120 each. Against roughly C$7.22 of reported earnings per share from the latest four available quarters, that is nearly 17 times recent earnings. Even using adjusted results, the multiple is around the mid-teens. Canadian bank valuations are already near multi-decade highs. For a value investor, that leaves too little discount for Scotiabank's still-unproven earnings recovery and comparatively high credit costs.

Big pictureRevenue is finally growing faster, but profits remain below the bank's earlier peak.

The supplied SEC-derived history shows revenue rising from C$31.3 billion in 2020 to C$37.7 billion in 2025, with most growth arriving recently. Yet 2025 net income of C$7.79 billion remained well below C$9.92 billion in 2022. Second-quarter 2026 net income improved to C$2.63 billion and reported earnings per share rose 35% year over year. Bank operating cash flow is inherently volatile because deposits and loans move through cash accounts, so earnings, credit losses, capital, and dividends are better durability measures than ordinary free cash flow.

Business strengthCapital protection is solid, while dividends consume a meaningful share of current earnings.

Scotiabank reported a 13.3% core common-equity capital ratio, meaning its highest-quality regulatory capital provides a substantial loss-absorbing cushion. The bank also raised its quarterly dividend to C$1.14. Supplied history shows C$5.37 billion of dividends against C$7.79 billion of 2025 net income, about 69%, so distributions are generous but not lightly funded. Share dilution has been material over several years, although current shares outstanding are down slightly year over year and the bank has authorization to repurchase up to 15 million shares.

What could change the storyLower loan losses and stronger North American earnings could justify the premium, but setbacks would expose it.

The bull case is that Scotiabank's restructuring produces sustained Canadian growth while its KeyCorp investment adds profitable U.S. exposure; KeyCorp is expected to contribute about C$90 million of adjusted third-quarter income. The bear case is credit: second-quarter provisions for expected loan losses were still C$1.22 billion, including C$1.13 billion on already-impaired loans. If earnings settle near recent levels rather than continuing upward, a mid-to-high-teens earnings multiple looks expensive. Materially lower credit losses and sustained earnings above C$2 per share quarterly would weaken that concern.

AI: News

Second-quarter earnings reboundScotiabank delivered much stronger profit growth as Canadian banking improved and expected loan losses declined.

On May 27, Scotiabank reported second-quarter net income of C$2.63 billion, up from C$2.03 billion a year earlier, while adjusted earnings per share reached C$2.02. Canadian Banking profit increased sharply and total provisions for expected loan losses declined to C$1.22 billion from C$1.40 billion. Reuters reported that Scotiabank exceeded profit expectations and its shares rose modestly. The result strengthened the case that the bank's multi-year profitability reset is producing measurable gains.

Jamaica ownership expansionScotiabank moved to buy out Jamaican minority owners, concentrating capital in a market it intends to keep.

On June 12, Scotiabank proposed acquiring the shares of Scotia Group Jamaica that it does not already own, with the subsidiary expected to become wholly owned if required approvals are received. The bank described the transaction as a way to improve capital and operating efficiency. The strategic significance is greater than the transaction headline alone: Scotiabank has been exiting less attractive Latin American operations while selectively increasing ownership where it believes returns can justify additional capital.

Share repurchase authorizationRegulators approved a modest buyback, giving management another way to return excess capital to shareholders.

On April 2, Scotiabank received approval to repurchase up to 15 million common shares, representing about 1.2% of the 1.23 billion shares then outstanding. The program is not large enough by itself to transform per-share earnings, but it matters because Scotiabank historically relied heavily on dividends and experienced meaningful share-count growth over several years. Repurchases made below intrinsic value would improve per-share economics; at today's richer valuation, the benefit from each dollar spent is less compelling.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016
Revenue	$37.74B	$33.67B	$32.21B	$31.42B	$31.25B	$31.34B	$31.03B	$28.77B	$27.16B	$26.35B
Net income	$7.76B	$7.89B	$7.45B	$10.17B	$9.96B	$6.85B	$8.80B	$8.72B	$8.24B	$7.37B
Net profit margin	20.56%	23.44%	23.13%	32.38%	31.85%	21.87%	28.35%	30.32%	30.36%	27.96%
Basic EPSper basic share	CA$5.84	CA$5.94	CA$5.78	CA$8.05	CA$7.74	CA$5.43	CA$6.72	CA$6.90	CA$6.55	CA$5.80
Diluted EPSper diluted share	CA$5.67	CA$5.87	CA$5.72	CA$8.02	CA$7.70	CA$5.30	CA$6.68	CA$6.82	CA$6.49	CA$5.77

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

Reported holdings Number of shares

View holders

Top 20 reported holders of BNS
Holder	Shares held
ROYAL BANK OF CANADA	65.85M
BANK OF MONTREAL /CAN/	51.92M
VANGUARD CAPITAL MANAGEMENT LLC	35.71M
CIBC WORLD MARKET INC.	25.21M
NORGES BANK	18.39M
ACADIAN ASSET MANAGEMENT LLC	18.38M
1832 Asset Management L.P.	16.25M
NATIONAL BANK OF CANADA /FI/	15.69M
GEODE CAPITAL MANAGEMENT, LLC	14.31M
TD Asset Management Inc	14.09M
SCOTIA CAPITAL INC.	12.94M
TORONTO DOMINION BANK	12.5M
FIL Ltd	12.25M
CANADA PENSION PLAN INVESTMENT BOARD	11.71M
VANGUARD FIDUCIARY TRUST CO	10.92M
CIBC Asset Management Inc	10.76M
JPMORGAN CHASE & CO	10.73M
Vanguard Global Advisers, LLC	9.46M
TD Waterhouse Canada Inc.	9.04M
MACKENZIE FINANCIAL CORP	8.65M

Bars compare reported share counts. A matching total for this share class and reporting period is unavailable, so percentages are not shown.

Source: SEC Form 13F ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)0$0.00 disclosed value

No insider transactions transactions were reported in the stored SEC coverage.

Review ownership filings at SEC.gov ↗

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Bank Of Nova Scotia (BNS)

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