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Bank Of Nova Scotia (BNS) AI Stock Analysis
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Bank Of Nova Scotia
(TSX:BNS)
The score is driven primarily by improved financial performance (strong TTM profitability and cash-flow rebound) tempered by elevated leverage and historical volatility. The latest earnings call adds support via confident guidance, stronger ROE, and sustained operating leverage, while technical indicators flag weaker near-term momentum despite an overall uptrend. Valuation is reasonable with a supportive dividend, but not compelling enough to materially lift the score on its own.
Bank Of Nova Scotia (BNS) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 114.28B
- Dividend Yield
- 3.42%
- Average Volume (3M)
- 3.78M
- Price to Earnings (P/E)
- 17.0
- Beta (1Y)
- 0.69
- Revenue Growth
- -3.29%
- EPS Growth
- 43.84%
- Country
- Canada
- Employees
- 81,734
- Sector
- Financial
- Sector Strength
- 68
- Industry
- Banks - Diversified
Bank Of Nova Scotia Business Overview & Revenue Model
Company Description
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, G...
How the Company Makes Money
BNS primarily earns revenue from (1) net interest income and (2) non-interest income (fees and market-related revenues). Net interest income is generated by taking deposits and other funding (typically at lower rates) and deploying that funding into...
Bank Of Nova Scotia Earnings Call Summary
The call highlighted broad-based, multi-segment outperformance with record EPS, strong ROE improvement, robust revenue and capital markets results, positive operating leverage and a healthy capital position while management continues to invest in technology, AI and strategic growth. Headwinds include elevated expenses tied to growth initiatives, pockets of credit stress in international portfolios (notably a specific Brazil account), some mortgage delinquency hot spots, and one-time/timing capital impacts (RWA changes, AIRB migration and a Chile deferred tax adjustment). Overall, positive operational momentum and capital strength materially outweigh the manageable and largely identified risks.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management guided that momentum should carry into Q4 and fiscal 2027, highlighting that the bank has already exceeded its 14%+ ROE target (Q3 ROE 14.2%) and does not view 14% as a ceiling, with Canadian Banking ROE at 19.4% (up 160 bps QoQ) expected to continue driving group ROE; CET1 is expected to remain around 13% next quarter after deploying ~23 bps to organic growth and repurchasing 8.6M shares (≈20 bps capital use) while absorbing a ~15 bps hit from certain portfolios moving from standardized to AIRB. They reiterated priorities of deploying capital to organic growth, then buybacks and tuck‑ins (having returned $8.3B over the past 12 months), and forecast continued loan and deposit growth (avg. loans +4% YoY, deposits +5% YoY; Canadian commercial loans +3% QoQ; small business +3% QoQ / +10% YoY; GBM loans +7% QoQ; International retail loans ~+5% YoY), further NII and fee momentum (NII +12% YoY, non‑interest income +21% YoY, NIM +18 bps YoY), sustained positive operating leverage (10th consecutive quarter; YTD operating leverage 3.9%; productivity ratio improved 90 bps to 52.5%), and a moderating credit outlook (all‑bank provisions $1.1B or 56 bps, impaired PCLs 52 bps and expected to trend lower in H2).
Bank Of Nova Scotia Financial Statement Overview
Summary
Financials show a meaningful TTM improvement with strong revenue growth (~16%), better net margin (~15.6%), and sharply higher operating and free cash flow (OCF ~$23.2B vs ~$10.5B in FY2025; FCF up ~65%) with cash earnings support (~0.96x FCF/NI). Offsetting factors are elevated leverage (TTM D/E ~3.29) and multi-year volatility in both margins and cash flows, which reduces consistency and balance-sheet flexibility.
Income Statement
72PositiveBalance Sheet
58NeutralCash Flow
74Positive| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.07B | 73.18B | 29.48B | 31.79B | 31.15B | 30.91B |
| Gross Profit | 34.37B | 32.38B | 29.56B | 31.79B | 31.15B | 30.91B |
| EBITDA | 14.26B | 10.56B | 10.56B | 11.49B | 14.20B | 14.00B |
| Net Income | 10.01B | 7.79B | 7.76B | 7.41B | 9.92B | 9.62B |
Balance Sheet | ||||||
| Total Assets | 1.55T | 1.46T | 1.41T | 1.41T | 1.35T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 10.33B | 108.10B | 108.17B | 140.83B | 119.31B | 120.05B |
| Total Debt | 272.46B | 236.69B | 300.67B | 313.81B | 310.86B | 245.66B |
| Total Liabilities | 1.46T | 1.37T | 1.33T | 1.33T | 1.27T | 1.11T |
| Stockholders Equity | 89.15B | 86.87B | 82.37B | 76.93B | 73.22B | 70.80B |
Cash Flow | ||||||
| Free Cash Flow | 6.32B | 5.06B | 15.16B | 31.28B | 16.37B | -13.27B |
| Operating Cash Flow | 6.96B | 5.41B | 15.65B | 31.72B | 16.94B | -12.81B |
| Investing Cash Flow | -813.00M | 1.57B | -7.45B | -30.04B | -11.29B | 14.70B |
| Financing Cash Flow | -7.78B | -6.31B | -8.84B | -2.77B | -4.58B | -2.78B |
Bank Of Nova Scotia Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNS, the sentiment is Positive. The current price of 131.05 is above the 20-day moving average (MA) of 129.25, above the 50-day MA of 128.33, and above the 200-day MA of 112.59, indicating a bullish trend. The MACD of 1.12 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 73.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNS.
Bank Of Nova Scotia Peers Comparison
Overall Rating
TSE:CM71Outperform
TSE:RY69Neutral- TSE:BNS68Neutral
TSE:NA65Neutral
TSE:BMO64Neutral
TSE:TD61Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:CM | 71Outperform | CAD 147.95B | 15.53 | 15.44% | 2.63% | 0.14% | 26.17% |
| TSE:RY | 69Neutral | CAD 393.70B | 17.86 | 16.11% | 2.39% | 4.67% | 19.97% |
| TSE:BNS | 68Neutral | CAD 161.38B | 16.98 | 11.41% | 3.42% | -3.29% | 43.84% |
| Sector * | 68Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
| TSE:NA | 65Neutral | CAD 81.55B | 17.39 | 14.36% | 2.43% | 7.97% | 17.60% |
| TSE:BMO | 64Neutral | CAD 166.21B | 19.45 | 10.58% | 2.83% | -1.74% | 7.63% |
| TSE:TD | 61Neutral | CAD 294.04B | 18.59 | 12.83% | 2.53% | -10.53% | -20.00% |
* Financial Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:BNS | Bank Of Nova Scotia | 131.05 | 42.33 | 47.72% | |
| TSE:BMO | Bank Of Montreal | 239.22 | 69.05 | 40.58% | |
| TSE:CM | Canadian Imperial Bank Of Commerce | 162.95 | 48.60 | 42.50% | |
| TSE:RY | Royal Bank Of Canada | 283.93 | 82.06 | 40.65% | |
| TSE:TD | Toronto Dominion Bank | 174.04 | 62.23 | 55.66% | |
| TSE:NA | National Bank of Canada | 210.58 | 56.47 | 36.65% |
Bank Of Nova Scotia Corporate Events
Scotiabank Delivers Record Q3 2026 Earnings and Surpasses ROE Target
PositiveScotiabank reported record third quarter 2026 results, with net income rising to $2,953 million from $2,527 million a year earlier and diluted earnings per share increasing to $2.27 from $1.84. Adjusted net income reached $2,973 million and adjusted...
Scotiabank Declares $1.14 Dividend and Maintains Market-Based Reinvestment Plan
PositiveScotiabank has declared a quarterly dividend of $1.14 per common share, payable on October 28, 2026, to shareholders of record as of October 6, 2026, reinforcing its ongoing capital return to investors. The bank continues to offer a dividend reinvest...
SPARC AI Announces Resignation of Non-Executive Director Justin Hanka
NegativeSPARC AI Inc. announced that Justin Hanka has resigned from his role as Non-Executive Director, effective July 16, 2026, marking a change in the company’s board composition. The departure comes as SPARC AI continues to focus on deploying its Ov...
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Aug 26, 2026