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The Bank of Nova Scotia(BNS) - 2024 Q4 - Annual Report
BNSThe Bank of Nova Scotia(BNS)2024-12-03 16:10
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Financial Performance - Total revenue for the year ended October 31, 2024, was 33,670million,anincreasefrom33,670 million, an increase from 32,214 million in 2023, representing a growth of 4.5%[16] - Net interest income rose to 19,252millionin2024,comparedto19,252 million in 2024, compared to 18,262 million in 2023, reflecting an increase of 5.4%[16] - Net income for the year was 7,892million,comparedto7,892 million, compared to 7,450 million in 2023, marking an increase of 5.9%[16] - Basic earnings per common share increased to 5.94in2024from5.94 in 2024 from 5.78 in 2023, a growth of 2.8%[16] - Comprehensive income for the year was 8,604million,comparedto8,604 million, compared to 7,933 million in the previous year, indicating an increase of 8.4%[17] - The total comprehensive income attributable to equity holders of the Bank was 8,542million,anincreasefrom8,542 million, an increase from 7,616 million in 2023, representing a growth of 12.1%[18] Assets and Equity - Total assets as of October 31, 2024, were 1,412,027million,slightlyupfrom1,412,027 million, slightly up from 1,411,043 million in 2023[15] - Total equity attributable to equity holders of the Bank increased to 82,369millionin2024from82,369 million in 2024 from 76,842 million in 2023, a rise of 7.2%[15] - Common equity rose to 73,590millionin2024,comparedto73,590 million in 2024, compared to 68,767 million in 2023, reflecting an increase of 7.5%[15] - Total equity attributable to common shareholders rose to 76,842million,upfrom76,842 million, up from 73,225 million in 2023, reflecting an increase of 3.6%[18] Credit Losses - Provision for credit losses increased to 4,051millionin2024,upfrom4,051 million in 2024, up from 3,422 million in 2023, indicating a rise of 18.4%[16] - The allowance for credit losses was 6,536millionin2024,comparedto6,536 million in 2024, compared to 6,372 million in 2023, indicating a growth of 2.6%[15] - Gross impaired loans totaled 6,739millionin2024,upfrom6,739 million in 2024, up from 5,726 million in 2023, marking an increase of 17.74%[85] - The allowance for credit losses on impaired loans was 2,054millionin2024,comparedto2,054 million in 2024, compared to 1,881 million in 2023, which is an increase of 9.2%[85] Cash Flow and Investments - Net cash from operating activities decreased significantly to 15,652millionin2024,downfrom15,652 million in 2024, down from 31,724 million in 2023, a decline of 50.6%[19] - Cash and cash equivalents at the end of the year were 9,406million,downfrom9,406 million, down from 10,173 million at the end of 2023, a decrease of 7.5%[19] - The total cash flows from investing activities resulted in a net outflow of 1,031millionin2024,comparedtoanetoutflowof1,031 million in 2024, compared to a net outflow of 911 million in 2023[19] - The fair value of investment securities classified as FVOCI and FVTPL rose significantly to 123,420millionin2024from123,420 million in 2024 from 86,253 million in 2023, marking an increase of approximately 43.1%[58] Derivatives and Hedging - The company reported total trading derivatives of 7,253,076million,upfrom7,253,076 million, up from 6,921,281 million[66] - The total notional amount of derivatives is 9,058,165million,withacreditriskamount(CRA)of9,058,165 million, with a credit risk amount (CRA) of 8,869 million and a credit equivalent amount (CEA) of 32,604million[69]−Thetotalnotionalamountsforcashflowhedgesrelatedtoforeigncurrencyandinterestrateriskwere32,604 million[69] - The total notional amounts for cash flow hedges related to foreign currency and interest rate risk were 29,166 million[71] - The total carrying amount of the hedged item for the year ended October 31, 2024, was 88,293million,withanineffectivenessincomerecordedof88,293 million, with an ineffectiveness income recorded of (1,215) million[72] Loans and Mortgages - Total gross loans as of October 31, 2024, amounted to 767,365million,anincreasefrom767,365 million, an increase from 757,283 million in 2023, representing a growth of approximately 1.43%[82] - Residential mortgages accounted for 350,941millionoftotalloans,withanetcarryingamountof350,941 million of total loans, with a net carrying amount of 349,733 million in 2024, showing a slight increase from 343,098millionin2023[82]−Thetotalloansandacceptancesnetofallowanceforcreditlosseswas343,098 million in 2023[82] - The total loans and acceptances net of allowance for credit losses was 760,976 million in 2024, down from 769,449millionin2023,reflectingadecreaseof1.54769,449 million in 2023, reflecting a decrease of 1.54%[82] Regulatory and Compliance - The Bank is prohibited from declaring or paying dividends on its common or preferred shares if it would contravene capital adequacy or liquidity regulations[115] - If cash distributions on the Bank's subordinated additional Tier 1 capital notes are not paid, the Bank will not declare dividends on its common or preferred shares until such distributions are made in full[115] Employee Benefits and Pension Plans - The Bank provides defined benefit pension plans and defined contribution pension plans, with the cost of employee benefits actuarially determined each year using the projected unit credit method[41] - The discount rate used to determine the defined benefit obligation is based on yields from high-quality corporate bonds, with separate rates for Canada and the U.S.[41] Legal and Contingent Liabilities - A legal provision of 142 million was recorded in relation to ongoing arbitration with the Republic of Peru[109] - The Bank's Peruvian subsidiary is involved in legal actions concerning value-added tax assessed amounts totaling 176million[109]ShareholderInformation−Dividendspaidoncommonsharesinfiscal2024were176 million[109] Shareholder Information - Dividends paid on common shares in fiscal 2024 were 5,198 million (4.24pershare),comparedto4.24 per share), compared to 5,003 million ($4.18 per share) in 2023[111] - The number of common shares outstanding increased to 1,244,435,686 in 2024 from 1,214,044,420 in 2023[112]