Core Insights - The company is expected to pivot towards growth by 2026, as indicated in the annual report and discussions during the Investor Day [1]. Group 1: Growth Expectations - The company anticipates growth to stem from its international banking business, which is seen as a key differentiator compared to competitors [2].

Core Viewpoint - Bank of Nova Scotia's international business is expected to benefit from a political shift to the right in Latin America and increasing US influence in the region, as stated by CEO Scott Thomson [1][3]. Group 1: Political and Economic Context - The last decade has been described as a "lost decade" for regional growth, but renewed US efforts for dominance in the Western Hemisphere are seen as a long-term positive for the region [2]. - Political movements toward the right or center-right in countries such as Chile, Colombia, and Peru, along with a business-friendly administration in Mexico, are expected to support stronger economic growth [3]. Group 2: Company Positioning - Scotiabank has the largest proportional international exposure among Canadian banks and has exited Venezuela but maintains operations in Mexico and holds a 20% stake in Colombia's Banco Davivienda SA [4]. - The CEO's perspective on developments in Venezuela contrasts with some analysts who suggest a more cautious approach to commercial lending in Latin America, which could impact loan growth and the bank's turnaround plan [5]. Group 3: Industry Implications - The potential reopening of the Venezuelan oil industry under US influence raises competition for Canadian heavy crude, which could affect supply dynamics for US Midwest refineries [6]. - The CEO emphasized the importance of building major national infrastructure projects in Canada to respond to these competitive pressures [6].

Summary of The Bank of Nova Scotia Conference Call Company Overview - **Company**: The Bank of Nova Scotia (NYSE: BNS) - **Date**: January 06, 2026 Key Points Growth Strategy and Financial Performance - The Bank of Nova Scotia is pivoting to growth in 2026, with expectations of double-digit earnings growth, following a successful 2025 where they achieved 10% earnings growth and positive operating leverage [8][10] - The international banking segment is expected to see mid-single-digit PTPP growth, while NIAT growth is anticipated to be modest [8][18] - The Canadian banking segment is projected to achieve double-digit NIAT growth in 2026, driven by yield improvements, productivity enhancements, and fee income growth of 8% year-over-year [10][29] International Banking Insights - The international banking business exceeded expectations in 2025, with a 250 basis point improvement in ROE and a focus on regionalization and cost discipline [14] - The macroeconomic environment in Latin America is shifting positively, with political changes potentially benefiting growth in the region [21][22] - The bank has no direct exposure to Venezuela, having exited in 2014, but sees potential long-term benefits from the political shift in Latin America [21][24] Canadian Banking Focus - The bank has added 275,000 primary clients since the last investor day and has seen significant growth in deposits, with over CAD 55 billion in new deposits [26][27] - The restructuring charge taken in 2025 has allowed for reinvestment in frontline sales and technology, aiming for positive operating leverage in 2026 [56] - The bank is focusing on improving its position in the cards segment and commercial mid-market, where it is currently underpenetrated [30][48] Global Banking and Markets (GBM) - The GBM segment is expected to see modest NIAT growth, with a focus on maintaining a sustainable high capital velocity approach [15][18] - The bank has invested significantly in enhancing its product capabilities in investment banking, leading to a 300 basis point improvement in ROE year-over-year [15][38] Return on Equity (ROE) and Capital Management - The bank's ROE target is set to exceed 13% by the end of 2026, with a focus on business mix and return on assets rather than leverage [29][49] - The bank plans to continue share repurchases, having bought back 11 million shares in 2025, while maintaining a CET1 ratio of 13% [52] Market Outlook and Challenges - The bank is cautious about overcommitting in the GBM business due to potential market volatility, but remains optimistic about growth in wealth management and Canadian banking [9][18] - Impaired PCL ratios are expected to remain consistent with 2025, with a focus on navigating challenges in specific markets like Mexico and Chile [58][60] Conclusion - The Bank of Nova Scotia is positioned for strong growth in 2026, with a commitment to executing its strategic plans and maintaining a focus on shareholder value through share repurchases and operational improvements [61][62]

Group 1: Bank of Nova Scotia - Bank of Nova Scotia, also known as Scotiabank, is one of the largest banks in Canada, operating under strict Canadian banking regulations that provide it with a protected market position [4] - The bank has a dividend yield of 4.2%, significantly higher than the average U.S. bank yield of 2.5%, attributed to its past investments in Central and South America which did not perform as expected [5] - Management is revamping its strategy by exiting less desirable markets and focusing on the Mexico, U.S., and Canada trading block, including a partnership and acquisition of approximately 15% of KeyCorp [6] Group 2: Brookfield Renewable Partners - Brookfield Renewable Partners is positioned as a leader in the clean energy sector, with a dividend yield of 5.3%, benefiting from the global transition from carbon-based energy to cleaner alternatives [8] - The company is expected to have significant long-term growth opportunities as the world continues to build out the necessary clean energy infrastructure [9] Group 3: Enbridge - Enbridge is identified as a North American midstream company with a dividend yield of 5.7%, contributing to a diversified investment portfolio [8]

Core Viewpoint - Dynamic has announced the final year-end reinvested distributions for its Active ETFs and ETF Series for the 2025 tax year, with distributions to be reinvested in additional units on January 5, 2026 [1][2]. Distribution Details - The reinvested distributions do not include any cash distribution amounts for December and will be consolidated to maintain the number of units outstanding [2]. - The final reinvested distribution amounts per unit for various ETFs are provided, with notable distributions including: - Dynamic Active Canadian Dividend ETF: 0.69150 CAD - Dynamic Active Global Dividend ETF: 11.31020 CAD - Dynamic Active U.S. Dividend ETF: 4.49560 CAD - Dynamic Active Innovation and Disruption ETF: 1.54710 CAD [3]. Tax Reporting - The actual taxable amounts of the reinvested distributions, including their tax characteristics, will be reported to CDS Clearing and Depository Services Inc. in early 2026, and securityholders can contact their brokerage for this information [3]. Company Overview - Dynamic is a division of 1832 Asset Management L.P., offering a range of wealth management solutions, including mutual funds and actively managed ETFs, and is wholly owned by Scotiabank [5].

Core Insights - The logistics sector has seen significant engagement from investors, particularly in the ASEAN and US markets, highlighting its growth potential and diversification opportunities [1] Investment Focus - The company has diversified its investments across various sectors including banking, telecommunications, logistics, and hotels, indicating a strategic approach to portfolio management [1] - The entry into the US market in 2020 reflects a growing interest in international investment opportunities, particularly in sectors like banks, hotels, and shipping [1] Market Trends - The popularity of insurance companies in the Philippines since 2014 suggests a shift in investment preferences among local investors, moving towards more diversified financial products [1] - The trend of using platforms like Seeking Alpha for analysis indicates a growing reliance on data-driven insights for investment decisions in both the ASEAN and US markets [1]

Core Insights - The banking and trading sectors are expanding their precious metals trading and storage capabilities to capitalize on the record surge in gold prices this year, marking a significant opportunity in the financial industry [1] - Gold and silver prices have recently accelerated, with spot gold surpassing $4,500 per ounce and silver crossing $70 per ounce, resulting in year-to-date increases of 71% and 150%, respectively [1] Group 1: Revenue Growth - Major banks' precious metals trading departments have seen a 50% increase in revenue in the first nine months of this year compared to the same period in 2024 [2] - The revenue from precious metals trading for 12 leading banks reached approximately $1.4 billion from January to September, indicating that 2025 could be the second-best year for bank gold trading, following 2020 [2] Group 2: Market Participation and Competition - Banks that previously closed their precious metals trading departments, such as Société Générale, Morgan Stanley, and Sumitomo Mitsui Banking Corporation, are re-entering the market and expanding their teams [3] - Non-bank competitors, including Swiss refiner MKS Pamp and financial platform StoneX, are also enhancing their precious metals trading operations, indicating increased competition in the sector [3] Group 3: Storage Business Revival - The storage business, once considered dull and low-margin, is regaining popularity among banks, with many exploring or already engaged in this area [4] - Citigroup is reportedly considering opening a vault, while MKS Pamp has expanded its operations and aims to become a leading player in the precious metals industry [4] Group 4: Advantages and Challenges - Wall Street banks possess significant advantages due to their large balance sheets, which have become crucial as smaller traders face funding challenges amid rising gold prices [5] - Non-bank competitors have specialized advantages in physical gold procurement, which is complex due to compliance with "good delivery" standards, making banks hesitant to engage early in the supply chain [6]

Group 1 - Bread Financial Holdings (BFH) has shown strong year-to-date performance, returning approximately 27.7%, outperforming the average gain of 16.7% in the Finance sector [4] - The Zacks Rank for Bread Financial Holdings is currently 1 (Strong Buy), indicating a positive outlook based on earnings estimates and revisions [3] - Over the past three months, the Zacks Consensus Estimate for BFH's full-year earnings has increased by 22.1%, reflecting improved analyst sentiment [4] Group 2 - Bread Financial Holdings is part of the Financial - Miscellaneous Services industry, which has an average loss of 4.9% this year, highlighting BFH's superior performance [6] - In comparison, Bank of Nova Scotia (BNS), another Finance sector stock, has a year-to-date return of 35% and a Zacks Rank of 2 (Buy) [5] - The Banks - Foreign industry, which includes Bank of Nova Scotia, has seen a significant increase of 53.3% since the beginning of the year [7]

Core Viewpoint - Dynamic has announced estimated year-end cash distributions for its Active ETFs and ETF series for the 2025 tax year, with final amounts to be confirmed by December 30, 2025 [1][2]. Group 1: Estimated Cash Distributions - The estimated cash distribution amounts per unit for various Dynamic Active ETFs are provided, with notable distributions including: - Dynamic Active Corporate Bond ETF (DXCB): CAD 0.07700 - Dynamic Active Global Financial Services ETF (DXF): CAD 0.30320 - Dynamic Active Credit Opportunities Fund (DXCO): CAD 0.19961 - Dynamic Active Real Estate ETF (DXRE): CAD 0.15000 - Dynamic Active U.S. Investment Grade Corporate Bond ETF (DXBU): CAD 0.11742 [3]. Group 2: Distribution Timeline - The record date for the 2025 year-end distributions is set for December 30, 2025, with payments scheduled for January 5, 2026 [2]. - Final taxable amounts and characteristics of the cash distributions will be reported to CDS Clearing and Depository Services Inc. in early 2026 [2]. Group 3: Company Overview - Dynamic is a division of 1832 Asset Management L.P., offering a range of wealth management solutions including mutual funds and actively managed ETFs [5]. - 1832 Asset Management L.P. is a limited partnership, wholly owned by Scotiabank, and Dynamic® is a registered trademark of The Bank of Nova Scotia [5].

Core Viewpoint - Dynamic has announced estimated year-end reinvested distributions for its Active ETFs and ETF Series for the 2025 tax year, with final amounts expected to be announced around December 30, 2025 [1][3]. Group 1: Estimated Distributions - The estimated year-end distributions will be reinvested in additional units of the respective Dynamic Active ETFs and ETF Series, with no cash distribution amounts included for December [2]. - The estimated reinvested distribution amounts per unit for various ETFs are provided, with notable figures such as: - Dynamic Active Canadian Dividend ETF: 0.69580 CAD - Dynamic Active Global Dividend ETF: 10.99750 CAD - Dynamic Active U.S. Dividend ETF: 4.49560 CAD [4]. Group 2: Distribution Details - The record date for the 2025 year-end distributions is set for December 30, 2025, with payments scheduled for January 5, 2026 [3]. - The actual taxable amounts of reinvested distributions, including tax characteristics, will be reported to CDS Clearing and Depository Services Inc. in early 2026 [3]. Group 3: Company Overview - Dynamic is a division of 1832 Asset Management L.P., offering a range of wealth management solutions, including mutual funds and actively managed ETFs [6].