Q4 2025 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported a 10% growth in EPS for the full year, demonstrating strong financial performance.
- The bank achieved an ROE of 12.5% in Q4, up 190 basis points year-over-year, indicating improved profitability.
- Closed referrals between Canadian retail, commercial, and wealth segments reached $15 billion, up 18% over the previous year.
- The bank's focus on deposit gathering resulted in an increased mix of P&C deposits for the second consecutive year.
- Global Wealth Management saw record earnings with strong AUM growth of 16% and net sales improvement of $11.5 billion versus fiscal 2024.
- Canadian Banking earnings were down 9% due to higher provisions for credit losses (PCLs) and lower margins.
- The bank incurred a $268 million after-tax restructuring charge to simplify Canadian operations, impacting net income.
- International Banking earnings were up only 1% year-over-year, reflecting challenges in the economic environment.
- The provision for credit losses was $4.7 billion for the year, driven mainly by higher performing PCLs.
- The bank's CET1 capital ratio decreased by approximately 10 basis points quarter-over-quarter, indicating a slight weakening in capital strength.
Good morning, and welcome to Scotiabank's Q4 results presentation. My name is Meny Grauman, and I'm Head of Investor Relations. Presenting to you this morning are Scott Thomson, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer. Following our comments, we'll be glad to take your questions.
Also present to take questions are the following Scotiabank executives: Aris Bogdaneris from Canadian Banking; Jacqueline Allard from Global Wealth Management, Francisco Aristeguieta from International Banking and Travis Machen from Global Banking and Markets. Before we start and on behalf of those speaking today, I will refer you to slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements. All the remarks today will be on an adjusted basis.
With that, I will now turn the call over to Scott.
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