Q4 2024 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported a solid Tier 1 capital ratio of 13.1%, indicating a strong balance sheet.
- The global wealth management business delivered record annual earnings of $1.6 billion in 2024, with a return on equity expansion to 15.7%.
- Canadian banking saw a 7% revenue-led earnings growth, driven by deposit growth and margin expansion.
- International banking achieved a 7% year-over-year earnings growth, with a significant reduction in capital deployed to the region.
- The bank's focus on primary client growth resulted in an increase of 280,000 primary clients across retail markets.
- Net income was impacted by a $430 million after-tax adjusting item, including a $379 million impairment charge related to the write-down of investments.
- The provision for credit losses increased by $629 million year-over-year, driven by higher impaired PCLs.
- International banking earnings are expected to be lower in 2025 due to weak American currencies and slow growth economies.
- The bank's global banking and markets segment reported a 5% decline in earnings, impacted by the elimination of the Canadian dividend received tax deduction.
- The Canadian residential mortgage book saw an uptick in impairments, attributed to interest rate pressures.
Good morning, and welcome to Scotiabank's 2024 fourth-quarter results presentation, and apologies for our late start this morning. My name is John McCartney, and I'm Head of Investor Relations here at Scotiabank. Presenting to you this morning are Scott Thomson, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer.
Following our comments, we will be glad to take your questions. Also present to take your questions are the following Scotiabank executives: Aris Bogdaneris from Canadian Banking; Jacqui Allard from Global Wealth Management; Francisco Aristeguieta from International Banking; and Travis Machen from Global Banking and Markets.
Before we start and on behalf of those speaking today, I refer you to slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements. And with that, I will now turn the call over to Scott.
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