Q3 2024 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported adjusted earnings of $2.2 billion or $1.63 per share in Q3, demonstrating solid top-line revenue growth.
- Canadian Banking business delivered $1.1 billion of earnings in the quarter, up 6%, with pre-tax, pre-provision earnings growing 11% year over year.
- Global Wealth Management contributed $415 million this quarter, driven by strong performance in Canadian wealth business and double-digit growth from international wealth.
- The bank's CET1 capital ratio increased to 13.3%, reflecting a strong balance sheet with improved liquidity metrics.
- The investment in KeyCorp is expected to add greater than $0.25 to EPS in the first full year of ownership and approximately 45 basis points to Scotiabank's return on equity.
- Credit costs are at the high end of the previously communicated range due to sustained higher rates impacting retail portfolios.
- Net interest margin was down 3 basis points quarter over quarter, driven by lower margins in International Banking and Canadian Banking.
- Expenses grew 5% year over year, driven by higher personnel costs from inflationary adjustments and technology-related costs.
- International Banking PCLs were $589 million, translating to a PCL ratio of 139 basis points, indicating elevated credit costs.
- Colombia continues to lose money, reflecting the challenging market environment and the need for ongoing expense management and strategic repositioning.
Good morning, and welcome to Scotiabank's 2024 third quarter results presentation. My name is John McCartney, and I'm Head of Investor Relations here at Scotiabank. Presented here this morning are Scott Thomson, Scotiabank's President, Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Phil Thomas, our Chief Risk Officer. Following our comments, will be glad to take your questions.
Also present to take your questions are the following Scotiabank executives, Aris Bogdaneris from Canadian Banking; Jackie 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'll refer you to slide 2 of our presentation, which contains Scotiabank's caution regarding forward-looking statements.
With that, I will now turn the call over to Scott.
Thank you, John, and good morning,
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