The Bank of Nova Scotia (BNS) AI Stock Analysis

Established in 1832 and based in Toronto, Canada, The Bank of Nova Scotia operates across four principal business segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets. The institution serves individuals, commercial clients, and institutions across Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean, Central America, and other international markets. Products and services range from personal mortgages, loans, insurance, and automotive financing to transaction services, corporate lending, investment banking advisory, online brokerage, and asset management funds.

For FY2025, revenue increased 148.2% to $73.18B, up from $29.48B in FY2024, while net income totaled $7.79B compared to $7.76B in the prior year. Net margin for FY2025 stood at 10.6%, down from 26.3% in FY2024 and 31.1% in FY2021. Over the five-year period from FY2020 to FY2025, revenue expanded at a compound annual growth rate of 18.5%. In the trailing twelve months ending July 31, 2026, revenue stood at $35.20B with an operating margin of 41.2% and diluted EPS of $5.52. For the latest quarter ended July 31, 2026, quarterly revenue grew 11.7% year-over-year, while quarterly earnings grew 23.4% year-over-year.

As of July 31, 2026, The Bank of Nova Scotia held $10.33B in cash and short-term investments alongside total assets of $1.55T. Total debt was $272.60B, resulting in net debt of $262.27B and a debt-to-equity ratio of 3.06 relative to shareholders' equity of $89.20B. In FY2025, the bank generated $5.41B in operating cash flow and $5.06B in free cash flow. Capital deployment in FY2025 included $347.0M in capital expenditures, $895.0M in share buybacks, and $5.88B in dividends paid.

With a market capitalization of $111.46B, the stock trades at a trailing price-to-earnings multiple of 16.6x and a forward P/E of 13.8x, both higher than the median of its US-listed Financial Services peers at 12.1x and 10.8x, respectively. The company's price-to-sales ratio of 3.2x matches the peer median of 3.2x, while its price-to-book ratio is 2.0x. Over the past year, the stock returned 49.1%, outperforming the 16.8% return of the S&P 500 benchmark.

The Bank of Nova Scotia offers a forward annual dividend of $3.21 per share, representing a dividend yield of 3.51%. Dividends are distributed on a quarterly basis with a payout ratio of 44.3%. The institution has maintained dividend payments for 25 consecutive years and achieved a 5-year annualized dividend growth rate of 2.9%, with its most recent ex-dividend date on October 6, 2026.

Wall Street coverage includes 2 Strong Buy, 3 Buy, 8 Hold, and 1 Sell ratings. The average analyst price target is $91.38, representing a 0.2% decline from the last closing price of $91.60. For the fiscal year ending October 31, 2026, consensus estimates project EPS of $8.55 on revenue of $40.63B. The bank beat earnings estimates in 3 of the last 4 quarters, with next earnings scheduled for December 1, 2026.

This page is an AI-written research summary of The Bank of Nova Scotia (BNS). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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