Financial Data and Key Metrics Changes - The bank ended the year with adjusted diluted earnings per share of $6.47, a return on equity of 11.3%, and return on tangible common equity of 13.7% [67] - Revenue was up 6% year-over-year, while expenses grew 4%, resulting in positive operating leverage of 2.3% for the year [68] - The provision for credit losses was $4.1 billion in 2024, $629 million higher, driven by higher impaired provisions [68] Business Line Data and Key Metrics Changes - Canadian Banking earnings were $4.3 billion, up $290 million or 7%, with revenue growth driven by deposit growth and margin expansion [68] - International Banking earnings were $2.7 billion, up 10% year-over-year, with revenues up 9% [69] - Global Wealth Management earnings of $1.6 billion were up 10% year-over-year, benefiting from strong assets under management growth of 18% [70] Market Data and Key Metrics Changes - The bank reported quarterly adjusted earnings of $2.1 billion and a diluted EPS of $1.57 [75] - Net interest income was $4.9 billion, up 6% year-over-year, primarily driven by loan growth [76] - Deposits were up 2% year-over-year, mostly in term, while loans were down 2% year-over-year, mainly in corporate [78] Company Strategy and Development Direction - The bank is focused on increasing the number of primary clients and has set a target of 2 million incremental primary clients by 2028 [6] - Capital allocation is being directed towards priority businesses, with a commitment to remix the portfolio to accelerate growth in fee income [7] - The bank aims to maintain a strong balance sheet with a Tier-1 capital ratio of 13.1% and has grown its allowance for credit losses by approximately 22% since the end of fiscal 2022 [8] Management's Comments on Operating Environment and Future Outlook - The management anticipates a rebound in economic activity next year due to the Bank of Canada's policy rate actions [19] - There is a focus on monitoring policy actions from the new administrations in Mexico and the US, with expectations for a cooperative environment that encourages capital investment [20] - Earnings growth is expected to be between 5% and 7% in 2025, prior to incorporating any benefits from the minority investment in KeyCorp [59] Other Important Information - The bank's productivity ratio improved to 56.1% this quarter, an improvement of 360 basis points year-over-year [80] - The Other segment reported an adjusted net loss of $453 million, compared to a loss of $465 million in the prior quarter [99] - ScotiaBond, a new culture framework, was rolled out to drive the bank's strategy forward [61] Q&A Session Summary Question: What are the expectations for earnings growth in 2025? - The bank continues to expect earnings growth between 5% and 7% in 2025, prior to incorporating any benefits from the KeyCorp investment [72] Question: How is the bank managing its capital allocation? - The bank is focused on disciplined capital allocation and execution, with a commitment to maintaining strong capital and liquidity positions [74] Question: What is the outlook for the International Banking segment? - International Banking earnings are expected to be lower, impacted by weaker Latin American currencies and slow growth economies [74]

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]

| --- | --- | --- | |-------------------------------|-------|-------| | | | | | | | | | Investor | | | | Presentation December 3, 2024 | | | | | | | | | | | Caution Regarding Forward-Looking Statements From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In ...

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.63 per share for Q3 2024, reflecting quarter-over-quarter EPS growth and solid top-line revenue growth driven by higher net interest income and noninterest revenue [6][22] - Return on equity was 11.3%, and return on tangible common equity was 13.7% [22] - Revenues increased by 5% year-over-year, with net interest income growing by 6% and noninterest income by 4% [22][23] - The provision for credit losses was approximately $1.1 billion, with a PCL ratio of 55 basis points, up 1 basis point quarter-over-quarter [23][35] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $1.1 billion, up 6% year-over-year, with a 1% increase in average loans and acceptances quarter-over-quarter [25][26] - Global Wealth Management earnings were $415 million, up 11% year-over-year, driven by higher brokerage revenues and net interest income [28] - Global Banking and Markets generated earnings of $418 million, down 4% year-over-year, impacted by lower fixed income revenues [29] - International Banking delivered earnings of $674 million, up 6% year-over-year, with net interest income increasing by 7% [31] Market Data and Key Metrics Changes - Customer deposits in International Banking grew 4% year-over-year, while loans were managed 2% lower, resulting in a loan-to-deposit ratio decrease to 126% [14][31] - In Canadian Banking, year-over-year deposits grew 8%, including a 5% increase in personal deposits [26] - The bank's CET1 ratio was 13.3%, an increase of 10 basis points quarter-over-quarter and 60 basis points year-over-year [24] Company Strategy and Development Direction - The bank is focused on developing primary client relationships, with P&C deposit growth across Canadian and international retail businesses up 7% year-over-year [3][4] - The investment in KeyCorp represents a strategic move to reallocate capital from developing to developed markets, enhancing growth opportunities in the U.S. [17][19] - The bank aims to enhance productivity and efficiency through cost discipline and process improvements, with a focus on maintaining a strong balance sheet [5][20] Management's Comments on Operating Environment and Future Outlook - The management expects modest economic improvement in Canada due to monetary easing, with policy rates likely trending lower into mid-next year [15][16] - The bank anticipates benefits from rate cuts to materialize in Q4 2024 and accelerate through 2025 [40][41] - Management remains confident in the resilience of the Canadian consumer and the stability of credit quality across portfolios [36][68] Other Important Information - The bank's productivity ratio improved by 210 basis points in international banking and 130 basis points in Canadian banking year-to-date [6] - The bank's wholesale funding requirement has been reduced by $33 billion over the past year, leading to a 250 basis point reduction in the wholesale funding ratio [7] Q&A Session Summary Question: Net interest margin outlook with expected rate cuts - Management indicated that every 25 basis points of rate cuts could benefit net interest income by approximately $100 million annually, with full benefits expected to materialize in fiscal 2025 [39][40] Question: Update on deposit franchise improvement - The bank has added over $28 billion in deposits in the last year, with day-to-day banking balances growing, indicating successful execution of deposit strategies [43][47] Question: International segment margin and loan loss ratio outlook - Management expressed optimism about the stability of the international banking portfolio, with expectations for continued performance in line with current levels [52][53] Question: Balance sheet growth expectations for international banking in 2025 - The bank anticipates a flattish balance sheet in 2025 due to a focus on client de-selection and targeted penetration efforts [56][57] Question: Potential for performing allowance releases - Management acknowledged the possibility of performing allowance releases if macroeconomic conditions improve, given the resilience observed in the Canadian consumer [58][59]

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The Bank of Nova Scotia (NYSE:BNS) Q2 2024 Earnings Conference Call May 28, 2024 8:00 AM ET Company Participants John McCartney - Head of IR Scott Thomson - President and Chief Executive Officer Raj Viswanathan - Chief Financial Officer Phil Thomas - Group Head and Chief Risk Officer Francisco Aristeguieta - Group Head, International Banking Aris Bogdaneris - Group Head, Canadian Banking Conference Call Participants Ebrahim Poonawala - Bank of America Doug Young - Desjardins Capital Markets Paul Holden - CI ...

Bank of Nova Scotia (BNS) came out with quarterly earnings of $1.16 per share, beating the Zacks Consensus Estimate of $1.14 per share. This compares to earnings of $1.25 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 1.75%. A quarter ago, it was expected that this bank would post earnings of $1.19 per share when it actually produced earnings of $1.25, delivering a surprise of 5.04%. Over the last four quarters, the company ...

Forward-Looking Statements and Risks - Forward-looking statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation[12] - Forward-looking statements include objectives, strategies, regulatory environment, anticipated financial results, and economic outlook for Canada, U.S., and global markets[12] - Key risks to forward-looking statements include economic conditions, currency and interest rate changes, geopolitical risks, technological changes, and operational risks[12] - The Bank's business involves significant exposure to loans and commitments to specific companies, industries, or countries, which could be adversely affected by unforeseen events[12] - Material economic assumptions underlying forward-looking statements are detailed in the 2023 Annual Report under the "Outlook" section[12] - The "Outlook" and "2024 Priorities" sections are based on the Bank's views, but actual outcomes remain uncertain[12] - The Bank does not undertake to update forward-looking statements except as required by law[12] - Additional information about the Bank can be found on the SEDAR+ and SEC EDGAR websites[12] Financial Performance and Key Metrics - Net income for the quarter ended April 30, 2024, was $2,092 million, compared to $2,146 million in the same period last year[13] - Total revenue for the quarter increased to $8,347 million from $7,913 million in the prior year period[13] - Provision for credit losses rose to $1,007 million, up from $709 million in the previous year[13] - Common Equity Tier 1 (CET1) capital ratio improved to 13.2%, up from 12.3% a year ago[13] - The effective tax rate for the quarter was 20.4%, slightly higher than the 20.2% average over the period[14] - Dividends paid per share increased to $1.06, up from $1.03 in the prior year[13] - Market capitalization stood at $77,660 million as of April 30, 2024[13] - Q4 2023 net gain of $367 million ($319 million after-tax) from the sale of 20% equity interest in Canadian Tire's Financial Services business[38] - Q4 2023 restructuring charge and severance provisions of $354 million ($258 million after-tax) due to workforce reductions and digitization efforts[38] - Q4 2023 real estate consolidation and contract termination costs of $87 million ($63 million after-tax)[38] - Q4 2023 impairment charges of $185 million ($159 million after-tax) related to investment in Bank of Xi'an Co. Ltd. in China[38] - Q4 2023 impairment of intangible assets, including software, of $161 million ($114 million after-tax)[38] - Q1 2023 additional income tax expense of $579 million for the Canada Recovery Dividend (CRD)[39] - Q4 2022 net loss of $361 million ($340 million after-tax) from divestitures and wind-down of operations in Asia Pacific[39] - Q4 2022 costs of $133 million ($98 million after-tax) to support the expansion of the Scene+ loyalty program[39] - Q2 2024 reported net income of $2,092 million, with adjusted net income of $2,105 million[40] - Q1 2024 reported net income of $2,199 million, with adjusted net income of $2,212 million[40] - Canadian Banking reported net income of $1,055 million for the three months ended April 30, 2023, and $2,103 million for the six months ended April 30, 2024[42][43] - International Banking reported net income of $657 million for the three months ended April 30, 2023, and $1,463 million for the six months ended April 30, 2024[42][43] - Global Wealth Management reported net income of $356 million for the three months ended April 30, 2023, and $753 million for the six months ended April 30, 2024[42][43] - Global Banking Markets reported net income of $401 million for the three months ended April 30, 2023, and $867 million for the six months ended April 30, 2024[42][43] - Adjusted net income attributable to common shareholders was $2,018 million for the three months ended April 30, 2023, and $4,009 million for the six months ended April 30, 2024[42][43] - Total non-interest expenses adjustments (Pre-tax) were $21 million for the three months ended April 30, 2023, and $36 million for the six months ended April 30, 2024[42][43] - Impact of adjusting items on net income before taxes was $21 million for the three months ended April 30, 2023, and $36 million for the six months ended April 30, 2024[42][43] - Total impact of adjusting items on net income was $15 million for the three months ended April 30, 2023, and $26 million for the six months ended April 30, 2024[42][43] - Adjusted net income attributable to equity holders was $2,137 million for the three months ended April 30, 2023, and $4,266 million for the six months ended April 30, 2024[42][43] - The Bank adopted IFRS 17 effective November 1, 2023, and prior period amounts have been restated accordingly[43] - Net interest income for the three months ended April 30, 2024, was $2,246 million, an increase from $1,999 million in the same period in 2023[45] - Non-interest income for the three months ended April 30, 2024, was $857 million, compared to $743 million in the same period in 2023[45] - Total revenue for the three months ended April 30, 2024, was $3,103 million, up from $2,742 million in the same period in 2023[45] - Provision for credit losses increased to $574 million for the three months ended April 30, 2024, from $436 million in the same period in 2023[45] - Net income for the three months ended April 30, 2024, was $768 million, compared to $657 million in the same period in 2023[45] - Average assets for the three months ended April 30, 2024, were $236 billion, slightly down from $239 billion in the same period in 2023[45] - Canadian Banking net interest income increased due to deposit growth, margin expansion, and loan growth[50] - International Banking net interest income trended upward due to growth in residential mortgages, business loans, and central bank rate increases[50] - Provision for credit losses increased due to an unfavorable macroeconomic outlook, retail portfolio growth, and higher interest rates[54] - Non-interest expenses reflect investments in personnel and technology, partly offset by expense management and efficiency initiatives[54] - Net income attributable to common shareholders for the six months ended April 30, 2024, was $4,009 million, compared to $3,638 million in the same period in 2023[66] - Adjusted net income attributable to common shareholders for the six months ended April 30, 2024, was $4,035 million, compared to $4,247 million in the same period in 2023[66] - Return on tangible common equity (adjusted) for the six months ended April 30, 2024, was 14.2%, compared to 16.0% in the same period in 2023[66] - Core net interest income for the six months ended April 30, 2024, was $9,804 million, compared to $9,432 million in the same period in 2023[60] - Net interest margin for the six months ended April 30, 2024, was 2.18%, compared to 2.12% in the same period in 2023[60] - Average core earning assets for the six months ended April 30, 2024, were $903,456 million, compared to $898,261 million in the same period in 2023[60] - Net interest income (reported) for the six months ended April 30, 2024, was $9,467 million, compared to $9,023 million in the same period in 2023[60] - Average tangible common equity for the six months ended April 30, 2024, was $57,026 million, compared to $53,603 million in the same period in 2023[66] - The Bank adopted IFRS 17 effective November 1, 2023, resulting in restated prior period amounts[66][60] - The Bank increased the capital attributed to its business lines to approximate 11.5% of the Basel III common equity capital requirements, up from 10.5% previously[63] - Reported Net income attributable to common shareholders for the three months ended January 31, 2024 was $2,066 million, compared to $2,018 million for the same period in 2023[64] - Total average common equity for the three months ended January 31, 2024 was $69,372 million, up from $67,574 million in the same period last year[64] - Return on equity for the three months ended January 31, 2024 was 11.8%, compared to 12.2% in the same period last year[64] - Adjusted Net income attributable to common shareholders for the three months ended January 31, 2024 was $2,079 million, up from $2,033 million in the same period last year[64] - Reported Net income attributable to common shareholders for the six months ended April 30, 2024 was $4,009 million, compared to $3,638 million for the same period in 2023[65] - Total average common equity for the six months ended April 30, 2024 was $69,774 million, up from $66,766 million in the same period last year[65] - Return on equity for the six months ended April 30, 2024 was 11.6%, compared to 11.0% in the same period last year[65] - Adjusted Net income attributable to common shareholders for the six months ended April 30, 2024 was $4,035 million, up from $4,247 million in the same period last year[65] - The Bank adopted IFRS 17 effective November 1, 2023, requiring restatement of prior period amounts[64][65] - Effective Q1 2024, the Bank increased the capital attributed to business lines to approximate 11.5% of Basel III common equity capital requirements, up from 10.5% previously[69][71] - The Bank's reported net income for Q2 2024 was $2,092 million, a decrease of 3% compared to $2,146 million in Q2 2023 and a decrease of 5% compared to $2,199 million in Q1 2024[73][80] - Adjusted net income for Q2 2024 was $2,105 million, a decrease of 3% compared to $2,161 million in Q2 2023 and a decrease of 5% compared to $2,212 million in Q1 2024[73][80] - Revenues for Q2 2024 were $8,347 million, an increase of 5% compared to $7,913 million in Q2 2023, driven by a 5% increase in net interest income to $4,694 million and a 6% increase in non-interest income to $3,653 million[82] - The provision for credit losses for Q2 2024 was $1,007 million, an increase of $298 million (42%) compared to $709 million in Q2 2023, with the provision for credit losses ratio increasing 17 basis points to 54 basis points[85] - Non-interest expenses for Q2 2024 were $4,711 million, an increase of $137 million (3%) compared to $4,574 million in Q2 2023, driven by higher technology-related costs, personnel costs, and advertising expenses[89] - The net interest margin for Q2 2024 was 2.17%, an increase of 5 basis points compared to Q2 2023, driven by higher margins in International Banking and Canadian Banking[82] - The productivity ratio for Q2 2024 improved to 56.4% compared to 57.8% in Q2 2023, with the adjusted productivity ratio improving to 56.2% compared to 57.5%[89] - Year-to-date net income for Q2 2024 was $4,291 million, an increase of 10% compared to $3,904 million in the same period last year, driven by higher revenues and lower provision for income taxes[81] - Year-to-date revenues for Q2 2024 were $16,780 million, an increase of 6% compared to $15,875 million in the same period last year, with net interest income increasing 5% to $9,467 million and non-interest income increasing 7% to $7,313 million[84] - The provision for credit losses on impaired loans for Q2 2024 was $975 million, an increase of $354 million (57%) compared to $621 million in Q2 2023, with the provision for credit losses ratio on impaired loans increasing 19 basis points to 52 basis points[85] - Non-interest expenses decreased by $28 million or 1% in Q2 2024 compared to Q1 2024, driven by seasonally lower share-based compensation and fewer days in the quarter[90] - Adjusted non-interest expenses increased by $421 million or 5% in Q2 2024 compared to Q2 2023, primarily due to higher personnel costs, technology-related costs, and foreign currency translation impacts[91] - The productivity ratio improved to 56.3% in Q2 2024 from 56.9% in Q2 2023, with the adjusted productivity ratio also improving to 56.1% from 56.6%[91] - Net interest income for Canadian Banking increased to $2,634 million in Q2 2024 from $2,342 million in Q2 2023, reflecting growth in this segment[98] - The effective tax rate rose to 20.4% in Q2 2024 from 18.4% in Q2 2023, primarily due to lower tax-exempt income and proposed tax measures[95] - Total revenue for Canadian Banking grew to $3,336 million in Q2 2024 from $3,128 million in Q2 2023, driven by higher net interest and non-interest income[98] - Provision for credit losses increased to $428 million in Q2 2024 from $218 million in Q2 2023, reflecting higher credit risk provisions[98] - Return on equity for Canadian Banking was 20.0% in Q2 2024, down from 22.7% in Q2 2023, indicating a slight decline in profitability[98] - Net interest margin for Canadian Banking remained stable at 2.56% in Q2 2024, compared to 2.30% in Q2 2023, showing consistent performance[98] - Average assets for Canadian Banking were $445 billion in Q2 2024, slightly down from $451 billion in Q2 2023, reflecting minor adjustments in asset management[98] - Net income attributable to equity holders decreased by $47 million or 4% in Q2 2024 compared to Q2 2023, primarily due to higher provision for credit losses and non-interest expenses[100] - Average assets decreased by $6 billion or 1% in Q2 2024 compared to Q2 2023, driven by a $13 billion or 5% decline in residential mortgages, partly offset by growth in business loans and credit cards[100] - Net interest income increased by $292 million or 12% in Q2 2024 compared to Q2 2023, driven by deposit growth and margin expansion, with the net interest margin rising 26 basis points to 2.56%[101] - Provision for credit losses increased by $210 million in Q2 2024 compared to Q2 2023, with the provision ratio rising 20 basis points to 40 basis points, driven by retail migration and an unfavourable macroeconomic outlook[104] - Non-interest expenses increased by $62 million or 4% in Q2 2024 compared to Q2 2023, primarily due to higher technology, personnel, and advertising costs to support business growth[107] - Year-to-date revenues increased by $432 million or 7% in Q2 2024 compared to Q2 2023, with net interest income rising $558 million or 12% and non-interest income declining $126 million or 8%[103] - Year-to-date provision for credit losses increased by $370 million in Q2 2024 compared to Q2 2023, with the provision ratio rising 17 basis points to 37 basis points, driven by higher retail and commercial formations[106] - Year-to-date non-interest expenses increased by $111 million or 4% in Q2 2024 compared to Q2 2023, primarily due to higher technology, personnel, and advertising costs[110] - The effective tax rate remained stable at 27.5% in Q2 2024, consistent with the prior year and prior quarter[111] - Average liabilities increased by $22 billion or 6% in Q2 2024 compared to Q2 2023, driven by growth in personal and non-personal deposits[100] - Net income attributable to equity holders increased by $35 million to $671 million in Q2 2024 compared to Q2 2023, driven by higher net interest income and foreign currency translation[114] - Adjusted net income attributable to equity holders decreased by $75 million or 10% in Q2 2024 compared to Q1 2024, primarily due to lower non-interest income and higher provision for income taxes[115] - Year-to-date Q2 2024 net income attributable to equity holders was $1,417 million, a 2% increase from $1,384 million in the same period last year, driven by higher net interest income[118] - Average assets remained stable at $235 billion in Q2 2024, with total loans decreasing by 2% primarily in Brazil and Peru, offset by a 6% increase in residential mortgages[119] - Net interest income increased to $2,261 million in Q2 2024, up from $1,999 million in Q2 2023, contributing to higher total revenue of $2,992 million[113] - Provision for credit losses rose to $566

Financial Data and Key Metrics Changes - The bank reported adjusted earnings of $2.2 billion or $1.69 per share in the quarter, with a return on equity of 11.9% and return on tangible common equity of 14.6% [24][35] - Revenues increased by 6% year-over-year, driven by a 5% rise in net interest income and an 8% increase in non-interest income [35] - The CET1 ratio was 12.9%, reflecting a decrease of approximately 10 basis points from the prior quarter, benefiting from earnings and share issuances [36] Business Line Data and Key Metrics Changes - Canadian Banking reported earnings of $1,096 million, a 1% increase year-over-year, with revenues growing 7% and expenses rising 3% [53] - Global Wealth Management earnings were $374 million, down 4% year-over-year, with strong growth in International Wealth offset by a decline in Canadian results [38] - Global Banking and Markets generated earnings of $439 million, down 15% year-over-year but improved 6% quarter-over-quarter [39] Market Data and Key Metrics Changes - The Canadian economy is expected to underperform compared to the U.S. and key Latin American countries early in the year, with growth reacceleration anticipated later [6] - Loan growth in the commercial and small business lines continues in the mid to high single-digit range, while retail loans grew by 4% [29][20] - Deposits grew by 5% year-over-year, with personal deposits increasing by 2% and non-personal deposits by 7% [20] Company Strategy and Development Direction - The company is focused on disciplined capital allocation, enhancing profitability, and building primary client relationships [3] - There is an emphasis on optimizing risk-weighted assets by reducing exposure to less profitable relationships [5] - The strategy includes growing commercial banking and enhancing cash management capabilities to serve multinational clients [33][92] Management's Comments on Operating Environment and Future Outlook - Management noted that higher interest rates are impacting consumer sentiment and spending, with expectations for rate cuts later in the year [6] - The company remains well-positioned to manage through potential economic challenges, with no recessionary conditions expected in operated geographies [27] - Provisions for credit losses are expected to peak in Q2 and improve in the latter half of the year [98] Other Important Information - The bank's liquidity coverage ratio strengthened to 132% year-over-year, reducing reliance on market source funding [25] - The international banking business delivered strong results with earnings of $752 million, up 35% year-over-year [11][57] - The bank's net interest margin expanded by 8 basis points year-over-year, driven by higher margins in international and Canadian banking [15] Q&A Session Summary Question: Thoughts on turning off the DRIP discount - Management indicated that they would consider turning off the DRIP discount after assessing the domestic stability buffer in June [69] Question: NIM expansion sustainability - Management expects NIM expansion to continue but at a muted pace, with benefits from asset repricing in international banking [48][71] Question: Near-term PCL expectations - Management anticipates some near-term deterioration in PCLs, particularly in international markets, with improvements expected in the latter half of the year [98] Question: Impact of tax changes on capital markets activity - The change in Canadian tax legislation is expected to impact the equities business, with a projected revenue impact of $180 million to $200 million for the year [100] Question: Deposit trends and household savings rates - Management noted a rotation into term deposits as consumers anticipate rate cuts, with overall deposit growth continuing [106]

Bank of Nova Scotia (BNS) came out with quarterly earnings of $1.25 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to earnings of $1.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.04%. A quarter ago, it was expected that this bank would post earnings of $1.19 per share when it actually produced earnings of $0.93, delivering a surprise of -21.85%.Over the last four quarters, the company ...