Bank of Nova Scotia

Canadian regulators have approved a sharp expansion of Bank of Nova Scotia's normal course issuer bid, lifting the cap on common share repurchases from 15 million to 40 million shares. The bank's shares last closed at CA$129.93, and the most followed fair value estimate stands at CA$132.71, framing the enlarged buyback as a capital return decision made with only a small modeled discount in play. The bank's expansion of banking and wealth management services across Pacific Alliance countries, namely Mexico, Peru, Chile and Colombia, is described as positioning it to capture revenue growth from increasing financial inclusion and rising middle-class demand for loans and investment products. Accelerated investment in digital platforms, including AI-driven solutions and enhanced online banking capabilities, is described as aiming to drive operational efficiency, reduce costs and support net margins. Still, the bank's heavy exposure to Latin America and the Canadian housing market could quickly test this fair value story if credit conditions worsen.

Canada's six leading banks are planning to launch a Canadian-dollar tokenized deposit system designed to move money faster between financial institutions. The first phase of the project focuses on moving tokenized deposits across participating banks, and a joint statement from the lenders said more banks could join the initiative later on. The system would eventually connect lenders such as Royal Bank of Canada and TD Bank with other digital asset initiatives, and the banks, which also include Bank of Montreal and Scotiabank, said the project aims to offer faster, more efficient payments to Canadian customers. The shared system could enable Canadian banks to test 24/7 programmable payments while keeping customer funds within the banking system. The move comes after Canada's banking regulator said tokenized deposits are not legally distinct from traditional deposits, and as banks worldwide race to put deposits on blockchain infrastructure, with U.S. regional lenders building a similar shared tokenized-deposit network and the biggest U.S. banks, such as JPMorgan Chase, pursuing their own system for institutional clients.

The Bank of Nova Scotia has priced C$750M, or US$534.4M, in Canadian defence notes, marking the first defense-labeled bond issuance by any entity in the Canadian market. According to a company statement released Tuesday, the five-year non-call four-year notes will raise proceeds that the bank intends to allocate an amount equal to the net proceeds to finance or refinance eligible assets supporting Canada's defense, security, and economic resilience priorities. The framework outlines eligible activities and reporting duties for defence instruments based on Canadian defence priorities, including the Defence Industrial Strategy, and was independently assessed by Sustainable Fitch as aligned with current defence financing practices. Paul Scurfield, Executive Vice President and Global Head of Capital Markets at Scotiabank, said the bank is proud to launch the first transaction under Scotiabank's Defence Issuance Framework, giving investors an opportunity to participate in a labeled bond supporting Canada's defense capabilities, industrial base, and long-term economic resilience.

Bank of Nova Scotia is seeing its strongest commercial banking deal pipeline in a long time, alongside 10% year-over-year small-business lending growth and five consecutive quarters of declining commercial credit-loss provisions, Group Head of Canadian Banking Aris Bogdaneris said at a Barclays event. Bogdaneris said the bank is already active with clients in oil and gas and defense under its CAD 100 billion commitment to Canadian industry, which covers both the existing book and future activity, and that it has added sales capacity in mid-market, small-business, prairie, British Columbia and Quebec segments. Fee revenue has grown more than 20% over the past two quarters on card, mutual fund and insurance fees, while net interest margin has expanded for five consecutive quarters and non-mortgage lending is growing faster than mortgage lending for the first time in two years. Digital channels accounted for 40% of third-quarter sales, and the bank aims to lift the share of revenue generated digitally from about 18% to 30%, with AI delivering nearly 70% time savings in parts of mortgage verification. Bogdaneris said 95% of new mortgage inflows now include a Mortgage+ bundle with at least three products, retail day-to-day and savings balances rose 1.2% sequentially in the third quarter, and a March high-interest savings launch has added CAD 6 billion in balances.

Scotiabank launched the Scotia Growth Institute and committed more than $100B in financing, underwriting and investment for Canadian companies and projects in key growth sectors over the next five years. The institute will focus on Canada's long-term economic growth and competitiveness. Scotiabank will also dedicate $50M through ScotiaRISE to programs supporting skills and talent in high-growth sectors, innovation and AI. Ambassador Kirsten Hillman has been appointed lead strategic advisor to the Scotia Growth Institute.

Canada's financial regulator, OSFI, announced it will keep the Domestic Stability Buffer requirement at 3% throughout the tenure of the current superintendent. Peter Routledge, Canada's superintendent of financial institutions, confirmed during a conference hosted by Bank of Nova Scotia that the 3% level will remain unchanged until June 2028, when his term ends. This follows OSFI's reduction of the buffer by 0.50 percentage points, or 50 basis points, to 3% last June, the first change in three years. Currently, Canada's largest banks must maintain a Common Equity Tier 1 ratio of at least 11% of risk-weighted assets, and the country's six largest banks hold capital comfortably above that minimum. Routledge said OSFI has not imposed restrictions on how banks may use excess capital, unlike during the COVID-19 pandemic, when the regulator limited dividend payments and share buybacks. Several executives of major banks attending the conference said their approach to deploying capital going forward will prioritize organic growth first, followed by share buybacks, rather than large acquisitions. Scott Thomson, chief executive officer of Scotiabank, said organic growth comes first and buybacks second, while Raymond Chun, chief executive officer of Toronto-Dominion Bank, said the bank has strong potential to run a high level of share buyback programs. Royal Bank of Canada and Bank of Montreal also said they plan to continue returning excess capital to shareholders through share buybacks.

Scotiabank has published its Canadian Defence Issuance Framework, becoming the first organization in Canada to establish a dedicated framework for labelled defence issuances. The framework sets the criteria for issuing Canadian Defence Instruments, including Canadian Defence Bonds, to finance or refinance activities supporting Canada's defence, security, and resilience priorities. It is informed by Canada's Defence Industrial Strategy and Our North, Strong and Free, and has received an independent assessment from Sustainable Fitch, the first such framework globally to do so. The publication comes as Canada and its allies increase defence investment, and Scotiabank aims to bring discipline and transparency to capital deployment in this evolving market.

A consortium of 21 international banks plans to launch a new company in the second half of this year to issue a stablecoin, with a market debut targeted for the first half of 2027. The venture's first product will be a US dollar-pegged stablecoin, with plans to later introduce versions tied to other G7 currencies, starting with the euro. The expanded group, which grew from an initial ten banks in October 2025, includes Bank of America, Goldman Sachs, Scotiabank, TD Bank Group, Wells Fargo, Banco Santander, BBVA, Commerzbank, Deutsche Bank, Lloyds Banking Group, MUFG Bank, and Standard Bank. The stablecoin will target wholesale, institutional, and retail users, with applications such as cross-border payments and digital asset settlement, and aims to be GENIUS Act and MiCA compliant. This announcement follows a separate initiative by Open Standard, which launched its own dollar-pegged stablecoin, Open USD, backed by over 140 companies including Visa and Mastercard.

The Bank of Nova Scotia reported third-quarter results that surpassed its medium-term profit target, with return on equity reaching 14.2%, adjusted net income climbing to $2.97 billion, and adjusted earnings per share rising 21% to $2.28. CEO Scott Thomson signaled that 14% won't be the high-water mark for returns. Canadian Banking earned $1.1 billion, up 12%, while Global Banking and Markets posted its best quarterly net income ever at $647 million, and Global Wealth Management earnings rose 23% to $515 million. International Banking added $725 million, up 6% on a constant dollar basis. However, expenses grew 14% year over year, and the bank flagged elevated mortgage delinquencies and a $57 million provision tied to a corporate account in Brazil. Fourth-quarter headwinds include a 15 basis point hit to capital ratios and a one-time deferred tax asset write-down from Chile's corporate tax cut.

Scotiabank has appointed Ralph Hamers to its Board of Directors, effective immediately. Hamers, former Group Chief Executive Officer of UBS Group AG and former CEO of ING Group, brings extensive global banking, technology, and transformation experience. Aaron Regent, Chair of the Board, praised Hamers' expertise in digital transformation and innovation, which will support the Bank's strategy to deliver more value for clients and shareholders. Hamers also played an instrumental role in UBS's acquisition of Credit Suisse and currently chairs Banking Circle Group and Your.World B.V.

The Bank of Nova Scotia reported third-quarter adjusted net income of C$2.97 billion, adjusted diluted earnings of C$2.28 per share, and adjusted return on equity of 14.2%, up from 12.4% a year earlier, exceeding its 14%+ medium-term ROE objective. The improvement was broad-based, with Canadian Banking earnings up 12% to C$1.07 billion, Global Wealth Management up 23%, and total net interest income rising to C$5.87 billion from C$5.49 billion. However, Global Banking and Markets delivered the largest segment increase, with earnings up 37% to a record C$647 million, driven by capital-markets revenue and record underwriting and advisory fees that may not repeat. Credit trends were mixed, as provisions for credit losses rose to C$1.08 billion from C$1.04 billion a year earlier, and the CET1 ratio declined 20 basis points sequentially to 13.1%. The bank repurchased 8.6 million shares during the quarter and returned C$6.3 billion to shareholders in the first nine months of fiscal 2026, but sustaining ROE above 14% will require more than one quarter of record fees.

The Bank of Nova Scotia declared a quarterly dividend of CAD 1.14 per share, in line with its previous payout. The dividend is payable on October 28 to shareholders of record on October 6, with the ex-dividend date also set for October 6.

Scotiabank has launched the Scotia Momentum for business No Fee Visa Card, a new credit card for Canadian business owners offering 1% cash back on all eligible purchases with no annual fee. The card also provides up to 6 cents per litre in value on fuel purchases at Shell, cash back redemption anytime with a minimum $25 value, and access to Visa Spend Clarity and Visa SavingsEdge. It includes mobile device insurance, purchase protection, and extended warranty coverage on eligible purchases. Scotiabank, with assets of approximately $1.5 trillion as of April 30, 2026, trades on the Toronto Stock Exchange and New York Stock Exchange under the symbol BNS.

Scotiabank has rolled out a suite of digital banking enhancements to its mobile app, including digital bill payment receipts, faster access to new Visa credit cards, and in-app fraud reporting. The new Digital Bill Payment Receipts feature lets clients view, download, and share receipts with payment amount, payee, date, and confirmation number. Eligible clients can now add a newly approved Visa credit card directly to their mobile wallet and begin using it immediately, without waiting for a physical card. Enhanced push notifications support two-step verification, and clients can report suspected fraudulent transactions directly in the app with added merchant names, locations, and timestamps. The update also highlights Scene+ benefits, including up to 10 cents per litre in value at participating Shell stations when linking an eligible Scotiabank card to a Shell Go+ account. Scotiabank, with assets of approximately $1.5 trillion as of April 30, 2026, is one of the largest banks in North America.

Scotiabank announced that the expected net income contribution from its ownership interest in KeyCorp will be approximately CAD $82 million in the third quarter of 2026. This contribution represents the Bank's share of KeyCorp's second quarter 2026 net income, includes acquisition-related and other accounting impacts, is net of the Bank's associated funding costs, and is reported on a one-month lag. Adjusting for the amortization of acquired intangible assets of approximately CAD $8 million, the Bank's adjusted net income contribution from KeyCorp will be approximately CAD $90 million. Scotiabank will release its third quarter financial results and host an earnings conference call on August 25, 2026.

Brookfield Infrastructure Partners L.P. and Brookfield Infrastructure Corporation announced plans to simplify their corporate structure by converting into one publicly traded corporation named Brookfield Infrastructure Partners Inc. The simplification will exchange outstanding BIP limited partnership units and BIPC class A exchangeable subordinate voting shares on a one-for-one basis for newly issued shares of BIP Inc., with completion expected in the fourth quarter of 2026 following special meetings on October 14, 2026. The transaction is designed to be tax-deferred for Canadian and U.S. investors and aims to improve trading liquidity, broaden the investor base, and enhance governance. BIP's preferred units and public debt will remain outstanding and unaffected, and Brookfield Asset Management's ownership and fee arrangements will continue unchanged. The boards of both entities, based on recommendations from independent special committees and fairness opinions from Scotiabank, unanimously approved the simplification and recommend securityholder approval.

Centerra Gold has amended its revolving credit facility, extending the maturity to July 15, 2030, and increasing the size to US$600 million from US$400 million. The interest rate margin over SOFR now ranges from 1.875% to 3.000%, down from 2.25% to 3.25%, depending on the net leverage ratio. No amounts are currently drawn under the facility, which is led by The Bank of Nova Scotia and National Bank of Canada and backed by a syndicate of international lenders. The expanded facility provides flexibility for general corporate purposes including working capital, investments, potential acquisitions, and capital expenditures.

Bank of Nova Scotia currently pays a dividend of $0.79 per share, yielding 3.73%, which exceeds the Banks - Foreign industry average of 2.8% and the S&P 500's 1.36%. The company's annualized dividend of $3.21 represents a 4.5% increase from last year, and over the past five years it has raised its dividend three times for an average annual increase of 2.35%. Its payout ratio stands at 55% of trailing twelve-month earnings. The Zacks Consensus Estimate for fiscal 2026 earnings is $6.01 per share, implying 18.77% growth from the prior year. The stock carries a Zacks Rank of 3, or Hold.

Scotiabank congratulates St. Michael's Hospital, Unity Health Toronto, and the GEMINI research team on the national expansion of the Vital health data platform, which will receive $100 million in federal funding as a key pillar of Canada's new AI Strategy. Vital builds on the Ontario-based GEMINI program, which collects and analyzes clinical and administrative data from over 30 hospitals covering more than 60 per cent of Ontario's inpatient care. Through its ScotiaRISE community investment initiative, Scotiabank invested $2 million in 2025 to support GEMINI's extension to mid- and smaller-sized facilities and to provide 10 scholarships for training in healthcare data and advanced analytics. The national platform will establish nearly real-time health data access for research and innovation across the country. Scotiabank's $500 million ScotiaRISE program has partnered with over 300 community organizations and invested more than $212 million globally since 2021.

Canada's banking regulator lowered the capital requirement for the country's largest banks, sending Canadian bank stocks higher. The Office of the Superintendent of Financial Institutions reduced the domestic stability buffer to 3.0% from 3.5% of total risk-weighted assets, the first change since June 2023, effective immediately. The regulator also narrowed the buffer's range to 0% to 3% from 0% to 4%. The six largest banks hold an average Common Equity Tier 1 ratio of 13.5%, well above the new supervisory expectation of 11.0%, representing a capital cushion of roughly $74 billion or an expansion in risk-weighted assets of $673 billion. Superintendent Peter Routledge said the move enables the banking sector to deploy excess capital in support of Canada's economic adaptation to new opportunities.

Bank Of Nova Scotia will invest $2.5 million over five years in a renewed arrangement with the Smith School of Business at Queen's University to boost artificial intelligence education and research. The investment, made through the bank's ScotiaRISE community investment initiative, will support the Scotiabank Centre for Analytics & AI at the school. The centre, founded in 2016, brings together faculty, graduate students, and industry experts to collaborate on research and prepare students for careers in enterprise AI.