The Bank of Nova Scotia(BNS) - 2024 Q4 - Annual Report

Financial Performance - Total revenue for the year ended October 31, 2024, was $33,670 million, an increase from $32,214 million in 2023, representing a growth of 4.5%[16] - Net interest income rose to $19,252 million in 2024, compared to $18,262 million in 2023, reflecting an increase of 5.4%[16] - Net income for the year was $7,892 million, compared to $7,450 million in 2023, marking an increase of 5.9%[16] - Basic earnings per common share increased to $5.94 in 2024 from $5.78 in 2023, a growth of 2.8%[16] - Comprehensive income for the year was $8,604 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 $8,542 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 $1,412,027 million, slightly up from $1,411,043 million in 2023[15] - Total equity attributable to equity holders of the Bank increased to $82,369 million in 2024 from $76,842 million in 2023, a rise of 7.2%[15] - Common equity rose to $73,590 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 $76,842 million, up from $73,225 million in 2023, reflecting an increase of 3.6%[18] Credit Losses - Provision for credit losses increased to $4,051 million in 2024, up from $3,422 million in 2023, indicating a rise of 18.4%[16] - The allowance for credit losses was $6,536 million in 2024, compared to $6,372 million in 2023, indicating a growth of 2.6%[15] - Gross impaired loans totaled $6,739 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 $2,054 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 $15,652 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 $9,406 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 $1,031 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 $123,420 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 $7,253,076 million, up from $6,921,281 million[66] - The total notional amount of derivatives is $9,058,165 million, with a credit risk amount (CRA) of $8,869 million and a credit equivalent amount (CEA) of $32,604 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 $88,293 million, with an ineffectiveness income recorded of $(1,215) million[72] Loans and Mortgages - Total gross loans as of October 31, 2024, amounted to $767,365 million, an increase from $757,283 million in 2023, representing a growth of approximately 1.43%[82] - Residential mortgages accounted for $350,941 million of total loans, with a net carrying amount of $349,733 million in 2024, showing a slight increase from $343,098 million in 2023[82] - The total loans and acceptances net of allowance for credit losses was $760,976 million in 2024, down from $769,449 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 $176 million[109] Shareholder Information - Dividends paid on common shares in fiscal 2024 were $5,198 million ($4.24 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]