Bank of Nova Scotia Reports Fiscal Q4 2024 Financial Results
The Bank of Nova Scotia (BNS) has announced its financial results for the fiscal fourth quarter ending October 31, 2024.
Key Financial Metrics:
| Metric | Q4 2024 | Q4 2023 | YoY Change | Q3 2024 | QoQ Change | Consensus Estimate |
|---|---|---|---|---|---|---|
| Total Revenue (C$ billion) | 8.526 | 8.272 | +3.1% | 8.364 | +1.9% | 8.63 |
| Net Income (C$ billion) | 1.689 | 1.354 | +24.8% | 1.912 | -11.7% | |
| Earnings Per Share (EPS) (C$) | 1.22 | 0.99 | +23.2% | 1.41 | -13.5% | 1.16 |
The Bank of Nova Scotia's financial performance in Q4 2024 showed a solid year-over-year increase in net income and earnings per share, although it fell short of the consensus EPS estimate of $1.16. The quarter-over-quarter decline in net income and EPS was primarily due to higher non-interest expenses and increased provision for income taxes.
Revenue Performance by Segment:
| Segment | Q4 2024 Revenue (C$ million) | Q4 2023 Revenue (C$ million) | YoY Change |
|---|---|---|---|
| Canadian Banking | 3,487 | 3,312 | +5.3% |
| International Banking | 2,887 | 2,780 | +3.8% |
| Global Wealth Management | 1,510 | 1,332 | +13.4% |
| Global Banking & Markets | 1,360 | 1,354 | +0.4% |
The Canadian Banking segment saw a notable increase in revenue, driven by asset and deposit growth. International Banking also experienced growth, supported by margin expansion. Global Wealth Management reported strong revenue growth due to higher mutual fund fees and brokerage revenues.
Operational Data:
| Operational Metric | Q4 2024 | Q4 2023 | YoY Change |
|---|---|---|---|
| Net Interest Margin (%) | 2.15 | 2.15 | 0.0% |
| Return on Equity (%) | 8.3 | 7.0 | +1.3% |
| CET1 Capital Ratio (%) | 13.1 | 13.0 | +0.1% |
Comments from Company Officers: Scott Thomson, President and CEO, highlighted the bank's strategic progress and emphasized the focus on client primacy initiatives to enhance profitability. He expressed confidence in achieving the targets set for 2025.
Dividends and Share Repurchase Program: The bank announced a dividend of C$1.06 per share, consistent with previous quarters. No new share repurchase program was announced.
Forward Guidance: The bank did not provide specific forward guidance but indicated a continued focus on maintaining strong capital ratios and optimizing capital deployment.
Stock Price Movement: Following the earnings release, Bank of Nova Scotia's stock experienced a slight decline of approximately 0.44%.
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