Bank of Nova ScotiaBNS -1.26%72 ROA % is 0.69% as of Apr. 2026, which is 13% below its 10-year median of 0.79. GuruFocus rates BNS with a GF Score™ of 72/100 and a GF Value™ of $60.66 (Significantly Overvalued). The stock has 7 warning signs investors should review. Among 1,529 Banks companies, Bank of Nova Scotia ranks worse than 69.33% on this metric.
ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Bank of Nova Scotia's annualizedNet Income for the quarter that ended in Apr. 2026 was $7,547 Mil.
Bank of Nova Scotia's average Total Assets over the quarter that ended in Apr. 2026 was $1,089,021 Mil. Therefore, Bank of Nova Scotia's annualized ROA % for the quarter that ended in Apr. 2026 was 0.69%.
The historical rank and industry rank for Bank of Nova Scotia's ROA % or its related term are showing as below:
BNS'
s ROA % Range Over the Past 10 Years
Min: 0.53 Med: 0.79 Max: 0.89
Current: 0.66
During the past 13 years, Bank of Nova Scotia's highest ROA % was 0.89%. The lowest was 0.53%. And the median was 0.79%.
BNS's ROA % is ranked worse than 69.33% of 1529
companies
in the Banks industry
Industry Median: 0.98
vs BNS: 0.66
Bank of Nova Scotia (NYSE:BNS) ROA % Explanation
ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A banks ROA % is typically well under 2%.
Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:
Note:
The Net Income data used here is four times the quarterly (Apr. 2026) net income data. The Revenue data used here is four times the quarterly (Apr. 2026) revenue data.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).
Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.
E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.
Bank of Nova Scotia ROA % Related Terms
Bank of Nova Scotia ROA % Historical Data
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The historical data trend for Bank of Nova Scotia's ROA % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Banks - Diversified subindustry, Bank of Nova Scotia's ROA %, along with its competitors' market caps and ROA % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Bank of Nova Scotia ROA % vs Banks Industry
For the Banks industry and Financial Services sector, Bank of Nova Scotia's ROA % distribution charts can be found below:
* The bar in red indicates where Bank of Nova Scotia's ROA % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data,
the Net Income data used here is four times the quarterly (Apr. 2026) net income data.
ROA % is displayed in the 30-year financial page.
Bank of Nova Scotia (BNS) has a ROA % of 0.69% as of Apr. 2026. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Bank of Nova Scotia and its competitors. This is 13% below median its historical median of 0.79. Over the past decade, Bank of Nova Scotia's ROA % has ranged from 0.53 to 0.89. According to the industry distribution chart, Bank of Nova Scotia ranks #1060 out of 1529 companies in the Banks industry, placing it in the top 69.3%.
Is Bank of Nova Scotia's ROA % too high?
Bank of Nova Scotia's current ROA % of 0.69% is 13% below median its 10-year median of 0.79. Over the past 10 years, this metric has ranged from a low of 0.53 to a high of 0.89. The Banks industry median ROA % is 0.98. Bank of Nova Scotia's value of 0.69% is 29.6% below this industry median. Based on the distribution chart, Bank of Nova Scotia ranks #1060 out of 1529 companies in the Banks industry, which is below the industry midpoint. Overall, Bank of Nova Scotia has a GF Score™ of 72/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Bank of Nova Scotia's ROA % compare to JPM and BAC?
According to the Banks industry distribution chart, Bank of Nova Scotia ranks #1060 out of 1529 companies for ROA %. This places Bank of Nova Scotia in the lower half of its industry. The industry median ROA % is 0.98. Bank of Nova Scotia's value of 0.69% is 29.6% below this benchmark. Historically, Bank of Nova Scotia's own ROA % has ranged from 0.53 to 0.89 over the past decade. While the company's 10-year median is 0.79 vs. the industry median of 0.98, Bank of Nova Scotia has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROA % for a Banks company?
The median ROA % among Banks companies is 0.98, based on 1,529 companies in the industry. Companies in the top quartile (top 25%) have a ROA % significantly above this median, while those in the bottom quartile fall well below. However, ROA % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Bank of Nova Scotia's current ROA % of 0.69% is 29.6% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROA % mean?
A high ROA % can signal that a stock is expensive relative to its fundamentals. Return on assets is the ratio of current-period net income to average two-period total assets. View historical data on Bank of Nova Scotia and its competitors. For the Banks industry, the median ROA % is 0.98 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Bank of Nova Scotia's current ROA % is 0.69%, which is 13% below median its own 10-year median of 0.79. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Bank of Nova Scotia stock overvalued right now?
Based on GuruFocus' analysis, Bank of Nova Scotia (BNS) is currently considered Significantly Overvalued. The stock's GF Value™ is $60.66, compared to a current price of $85.30 — trading 40.6% above its estimated fair value. The current ROA % is 0.69%, which is 13% below median its 10-year median of 0.79 and 29.6% below the Banks industry median of 0.98. Bank of Nova Scotia's overall GF Score™ is 72/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROA % calculated?
ROA % is calculated from a company's financial statements. For Bank of Nova Scotia (BNS), the current ROA % is 0.69% as of Apr. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Bank of Nova Scotia (BNS) Overvalued in 2026?
Based on GuruFocus' analysis, Bank of Nova Scotia stock appears to be overvalued.
The current stock price of $85.30 is trading 40.6% above its estimated GF Value™ of $60.66.
GuruFocus considers Bank of Nova Scotia to be Significantly Overvalued.
Key valuation signals for BNS:
ROA %: 0.69% (13% below median its 10-year median of 0.79)
GF Value™: $60.66 vs. price of $85.30 (40.6% above fair value)
Industry Position: 29.6% below the Banks median (#1060 of 1529)
No single metric tells the full story. See the BNS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Bank of Nova Scotia is a global financial-services provider with over CAD 1.5 trillion in assets as of the end of April 2026. It has four major business segments: Canadian banking, international banking, global wealth management, and global banking and markets. It offers a range of advice, products, and services, including personal and commercial banking, wealth management and private banking, corporate and investment banking, and capital markets. The bank's international operations span numerous countries and are more concentrated in Latin America.
72GF Score
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