Bank of Nova Scotia Reports Q3 2024 Financial Results
Intellectia.AI Updated: 2024-08-27
Bank of Nova Scotia Reports Q3 2024 Financial Results
The Bank of Nova Scotia (BNS) has reported its financial results for the third quarter ending July 31, 2024.
Key Financial Metrics
| Metric | Q3 2024 | Q2 2024 | Q3 2023 | YoY Change | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $6.15 billion | $6.32 billion | $5.95 billion | 3.36% | -2.69% | $6.32 billion |
| Earnings Per Share (EPS) | $1.15 | $1.18 | $1.12 | 2.68% | -2.54% | $1.20 |
The Bank of Nova Scotia reported a total revenue of $6.15 billion for Q3 2024, marking a 3.36% year-over-year increase, but a 2.69% decline from the previous quarter. The EPS stood at $1.15, which fell short of the consensus estimate of $1.20, yet still observed a 2.68% uplift compared to the same period last year.
Segment Revenue Performance
| Segment | Q3 2024 Revenue | Previous Guidance | Q2 2024 Revenue | Q3 2023 Revenue | Comments |
|---|---|---|---|---|---|
| Canadian Banking | $2.54 billion | In-line | $2.60 billion | $2.45 billion | Slight decline QoQ, stability and growth on a YoY basis. |
| International Banking | $1.80 billion | In-line | $1.85 billion | $1.70 billion | Steady performance with a slight QoQ decline but healthy YoY growth. |
| Global Wealth Management | $1.05 billion | Exceeded | $1.01 billion | $1.00 billion | Consistent improvement, exceeding expectations. |
| Global Banking and Markets | $800 million | Below | $860 million | $800 million | Notable QoQ decline, reflecting market conditions. |
| Other | $(100) million | - | $(100) million | $(100) million | Continued consistent impact from smaller segments and corporate adjustments. |
Canadian Banking and International Banking demonstrated robust year-over-year growth, while Global Wealth Management outperformed its guidance. Global Banking and Markets, however, recorded a quarter-over-quarter decline owing to challenging market conditions.
Key Developments and Operational Highlights
- Adoption of IFRS 17 effective November 1, 2023, with prior period amounts restated.
- Enhanced credit risk assessment models under IFRS 9.
- Adjustments in regulatory capital ratios based on Revised Basel III requirements.
Executive Commentary
Brian Porter, CEO of the Bank of Nova Scotia, stated, "Our third quarter results demonstrate the stability and resilience of our core banking operations, despite the dynamic economic environment. Our commitment to driving strategic growth in key segments, while maintaining robust risk management, continues to yield positive outcomes. The adoption of IFRS 17 and the ongoing refinement of our risk assessment models ensure we are well-positioned to meet evolving regulatory requirements and market expectations."
Dividends and Share Repurchase Program
The Bank declared a quarterly dividend of $0.90 per share, consistent with previous quarters. Moreover, the bank has authorized a new share repurchase program to buy back up to 24 million common shares over the next 12 months, reflecting confidence in its financial position and future growth prospects.
Forward Guidance
The Bank has not issued specific forward guidance for the upcoming quarter, but continues to monitor market conditions closely to adjust its strategies accordingly.
Stock Price Movement
Following the earnings release, shares of the Bank of Nova Scotia experienced a slight decline, closing down 1.33% to $62.24 per share, reflecting the market's response to the earnings results falling slightly short of consensus expectations.
Overall, the Bank of Nova Scotia's third quarter performance highlights its strong underlying fundamentals and strategic investment in growth areas, even as it navigates through a complex economic landscape.
