Net interest income growth has decelerated to 4.8% in 2026Q2, while the net interest margin remains stagnant at 0.4%, suggesting ongoing challenges in asset yield optimization.
| Metric | TTM | Oct'25 | Oct'24 | Oct'23 | Oct'22 | Oct'21 | Oct'20 | Oct'19 | Oct'18 | Oct'17 | Oct'16 | Oct'15 | Oct'14 | Oct'13 | Oct'12 | Oct'11 | Oct'10 | Oct'09 | Oct'08 | Oct'07 | Oct'06 | Oct'05 | Oct'04 | Oct'03 | Oct'02 | Oct'01 | Oct'00 | Oct'99 | Oct'98 | Oct'97 | Oct'96 |
|---|
| Net Interest Income | 22.18B | 21.52B | 19.25B | 18.29B | 18.11B | 16.96B | 17.32B | 17.18B | 16.19B | 15.04B | 14.29B | 13.09B | 12.3B | 11.35B | 9.97B | 9.01B | 8.62B | 8.33B | 7.57B | 7.1B | 6.41B | 5.87B | 5.7B | 5.97B | 6.67B | 6.2B | 5.2B | 4.67B | 4.38B | 3.72B | 3.35B |
| NII Growth % | 39.11% | 11.79% | 5.28% | 0.95% | 6.8% | -2.07% | 0.83% | 6.09% | 7.69% | 5.2% | 9.17% | 6.4% | 8.41% | 13.84% | 10.61% | 4.56% | 3.52% | 9.96% | 6.71% | 10.77% | 9.15% | 2.98% | -4.48% | -10.58% | 7.64% | 19.27% | 11.28% | 6.74% | 17.76% | 10.82% | 7.67% |
| Net Interest Margin % | 1.46% | 1.47% | 1.36% | 1.3% | 1.34% | 1.43% | 1.52% | 1.58% | 1.62% | 1.64% | 1.59% | 1.53% | 1.53% | 1.53% | 1.49% | 1.57% | 1.64% | 1.68% | 1.49% | 1.72% | 1.69% | 1.87% | 2.04% | 2.09% | 2.25% | 2.18% | 2.05% | 2.1% | 1.87% | 1.9% | 2.13% |
| Interest Income | 54.76B | 57.6B | 61.66B | 56.82B | 33.56B | 24.99B | 29.71B | 32.78B | 28.07B | 23.93B | 22.21B | 20.29B | 19.54B | 18.82B | 17.15B | 18.71B | 16.89B | 18.93B | 22.32B | 21.03B | 17.68B | 13.8B | 12.18B | 13.25B | 14.37B | 16.98B | 15.33B | 13.47B | 13.09B | 10.49B | 10.62B |
| Interest Expense | 32.58B | 36.08B | 42.41B | 38.54B | 15.44B | 8.03B | 12.39B | 15.61B | 11.88B | 8.89B | 7.92B | 7.2B | 7.24B | 7.46B | 7.15B | 9.44B | 8.27B | 10.61B | 14.74B | 13.94B | 11.27B | 7.93B | 6.31B | 7.1B | 7.69B | 10.78B | 10.13B | 8.8B | 8.71B | 6.77B | 7.04B |
| Loan Loss Provision | 4.55B | 4.71B | 4.05B | -38.54B | -15.44B | -8.03B | -12.39B | -15.61B | -11.88B | -8.89B | -7.92B | -7.2B | -7.24B | -7.46B | -5.61B | -9.44B | -8.27B | -10.61B | -14.74B | -13.94B | -11.27B | -7.93B | -6.31B | -7.1B | -7.69B | -10.78B | -10.13B | -8.8B | -8.71B | -6.77B | -7.04B |
| Non-Interest Income | 16.22B | 15.57B | -32.18B | -25.04B | -2.41B | 5.93B | 1.58B | -2.55B | 149M | 2.82B | 3.73B | 3.36B | 3.64B | 1.84B | 2.81B | -1.42B | -1.39B | -4.48B | -10.44B | -8.55B | -6.47B | -3.4B | -1.99B | -3.08B | -3.75B | -6.71B | -6.47B | -5.62B | -5.86B | -4.09B | -5.26B |
| Non-Interest Income % | 22.85% | 21.28% | -109.13% | -78.76% | -7.74% | 19.17% | 5.05% | -8.43% | 0.53% | 10.55% | 14.37% | 14.2% | 15.69% | 8.91% | 14.07% | -8.24% | -8.94% | -30.97% | -87.89% | -68.42% | -57.77% | -32.72% | -19.57% | -30.3% | -35.33% | -65.34% | -72.96% | -71.5% | -80.94% | -63.88% | -98.1% |
| Total Revenue | 70.98B | 73.18B | 29.48B | 31.79B | 31.15B | 30.91B | 31.29B | 30.24B | 28.22B | 26.75B | 25.94B | 23.64B | 23.18B | 20.66B | 19.96B | 17.29B | 15.51B | 14.46B | 11.88B | 12.49B | 11.21B | 10.4B | 10.18B | 10.17B | 10.62B | 10.27B | 8.86B | 7.86B | 7.24B | 6.4B | 5.36B |
| Revenue Growth % | -22.19% | 148.2% | -7.25% | 2.05% | 0.76% | -1.21% | 3.49% | 7.16% | 5.49% | 3.13% | 9.69% | 2.02% | 12.16% | 3.51% | 15.47% | 11.5% | 7.25% | 21.72% | -4.91% | 11.44% | 7.76% | 2.12% | 0.18% | -4.24% | 3.36% | 15.88% | 12.85% | 8.57% | 13.05% | 19.36% | 14.77% |
| Non-Interest Expense | 21.04B | 21.87B | 19.64B | 31.79B | -3.03B | -18.42B | -22.97B | -19.37B | -5.41B | -7.82B | -8.87B | -7.58B | -6.87B | -5.02B | -3.45B | -1.26B | -1.25B | 830M | 6.7B | 6.56B | 4.52B | 1.59B | -147.52M | 191.22M | -524.92M | 3.56B | 4.18B | 3.36B | 3.63B | 2.64B | 3.41B |
| Efficiency Ratio | 29.64% | 29.89% | 66.61% | 100% | -9.73% | -59.58% | -73.41% | -64.08% | -19.17% | -29.23% | -34.21% | -32.07% | -29.63% | -24.3% | -17.27% | -7.29% | -8.07% | 5.74% | 56.37% | 52.49% | 40.31% | 15.27% | -1.45% | 1.88% | -4.94% | 34.63% | 47.2% | 42.8% | 50.24% | 41.3% | 63.63% |
| Operating Income | 12.82B | 10.51B | 13.18B | 8.69B | 28.12B | 12.49B | 8.32B | 10.86B | 22.81B | 18.93B | 17.06B | 16.06B | 16.31B | 15.64B | 14.97B | 16.03B | 14.25B | 15.29B | 18.57B | 19.05B | 15.73B | 11.99B | 10.04B | 10.36B | 10.09B | 13.83B | 13.05B | 11.22B | 10.87B | 9.04B | 8.77B |
| Operating Margin % | 18.06% | 14.36% | 44.72% | 27.34% | 90.27% | 40.42% | 26.59% | 35.92% | 80.83% | 70.77% | 65.79% | 67.93% | 70.37% | 75.7% | 75.01% | 92.71% | 91.93% | 105.74% | 156.37% | 152.49% | 140.31% | 115.27% | 98.55% | 101.88% | 95.06% | 134.63% | 147.2% | 142.8% | 150.24% | 141.3% | 163.63% |
| Operating Income Growth % | - | -20.29% | 51.71% | -69.09% | 125.03% | 50.16% | -23.39% | -52.37% | 20.48% | 10.94% | 6.23% | -1.51% | 4.26% | 4.45% | -6.57% | 12.44% | -6.76% | -17.69% | -2.48% | 21.11% | 31.17% | 19.45% | -3.1% | 2.63% | -27.02% | 5.98% | 16.32% | 3.19% | 20.2% | 3.07% | 1.22% |
| Pretax Income | 12.82B | 10.51B | 9.92B | 9.75B | 12.93B | 12.83B | 8.4B | 11.27B | 11.11B | 10.28B | 9.4B | 9.07B | 9.3B | 8.46B | 8.05B | 6.68B | 6.08B | 4.79B | 3.83B | 5.11B | 4.45B | 4.06B | 3.72B | 3.26B | 2.4B | 3.05B | 2.92B | 2.42B | 2.16B | 2.27B | 1.73B |
| Pretax Margin % | 18.06% | 14.36% | 33.66% | 30.69% | 41.52% | 41.49% | 26.83% | 37.27% | 39.36% | 38.42% | 36.24% | 38.34% | 40.13% | 40.94% | 40.3% | 38.63% | 39.24% | 33.16% | 32.26% | 40.9% | 39.71% | 39% | 36.56% | 32.08% | 22.59% | 29.65% | 32.9% | 30.78% | 29.8% | 35.5% | 32.34% |
| Income Tax | 3.16B | 2.75B | 2.03B | 2.23B | 2.76B | 2.87B | 1.54B | 2.47B | 2.38B | 2.03B | 2.03B | 1.85B | 2B | 1.76B | 1.58B | 1.41B | 1.75B | 1.13B | 691.44M | 1.06B | 871.76M | 846.62M | 792.49M | 784.65M | 601.25M | 876.05M | 990M | 867M | 762M | 758M | 665M |
| Effective Tax Rate % | 24.62% | 26.18% | 20.48% | 22.82% | 21.33% | 22.38% | 18.38% | 21.93% | 21.45% | 19.78% | 21.6% | 20.44% | 21.53% | 20.84% | 19.64% | 21.11% | 28.68% | 23.63% | 18.05% | 20.81% | 19.59% | 20.87% | 21.28% | 24.06% | 25.06% | 28.76% | 33.95% | 35.86% | 35.34% | 33.36% | 38.35% |
| Net Income | 9.55B | 7.79B | 7.76B | 7.41B | 9.92B | 9.62B | 6.78B | 8.39B | 8.55B | 8.01B | 7.12B | 7.01B | 7.07B | 6.42B | 6.24B | 5.17B | 4.24B | 3.55B | 3.14B | 4.05B | 3.58B | 3.21B | 2.93B | 2.48B | 1.8B | 2.17B | 1.93B | 1.55B | 1.39B | 1.51B | 1.07B |
| Net Margin % | 13.45% | 10.64% | 26.31% | 23.31% | 31.84% | 31.13% | 21.66% | 27.75% | 30.29% | 29.93% | 27.44% | 29.67% | 30.51% | 31.08% | 31.27% | 29.93% | 27.34% | 24.53% | 26.44% | 32.39% | 31.94% | 30.86% | 28.78% | 24.36% | 16.93% | 21.12% | 21.73% | 19.75% | 19.27% | 23.66% | 19.94% |
| Net Income Growth % | 43.77% | 0.4% | 4.7% | -25.27% | 3.03% | 41.99% | -19.21% | -1.85% | 6.78% | 12.48% | 1.47% | -0.81% | 10.11% | 2.87% | 20.64% | 22.08% | 19.51% | 12.97% | -22.38% | 13.02% | 11.52% | 9.5% | 18.35% | 37.78% | -17.15% | 12.64% | 24.18% | 11.26% | -7.93% | 41.63% | 22.03% |
| Net Income (Continuing) | 9.66B | 7.76B | 7.89B | 7.53B | 9.91B | 9.62B | 6.61B | 8.15B | 8.16B | 7.84B | 6.95B | 6.81B | 6.87B | 6.02B | 6.02B | 5.33B | 4.34B | 3.66B | 3.26B | 4.16B | 3.68B | 3.28B | 2.98B | 2.42B | 1.8B | 2.17B | 1.93B | 1.55B | 1.39B | 1.51B | 1.07B |
| EPS (Diluted) | 10.53 | 5.69 | 5.86 | 5.81 | 8.02 | 7.70 | 5.30 | 6.67 | 6.96 | 6.49 | 5.77 | 5.67 | 5.66 | 5.11 | 5.22 | 4.53 | 3.91 | 3.31 | 3.05 | 4.01 | 3.55 | 3.15 | 2.82 | 2.34 | 1.65 | 2.03 | 1.81 | 1.47 | 1.32 | 1.48 | 1.02 |
| EPS Growth % | 51.36% | -2.9% | 0.86% | -27.56% | 4.16% | 45.28% | -20.54% | -4.17% | 7.24% | 12.48% | 1.76% | 0.18% | 10.76% | -2.11% | 15.23% | 15.86% | 18.13% | 8.52% | -23.94% | 12.96% | 12.7% | 11.7% | 20.51% | 41.82% | -18.72% | 12.15% | 23.13% | 11.36% | -10.81% | 45.1% | 20% |
| EPS (Basic) | - | 5.69 | 5.94 | 5.84 | 8.05 | 7.74 | 5.43 | 6.72 | 7.05 | 6.55 | 5.80 | 5.70 | 5.69 | 5.15 | 5.31 | 4.63 | 3.91 | 3.32 | 3.07 | 4.04 | 3.59 | 3.19 | 2.87 | 2.38 | 1.68 | 2.06 | 1.84 | 1.47 | 1.32 | 1.48 | 1.02 |
| Diluted Shares Outstanding | 906.38M | 1.25B | 1.23B | 1.2B | 1.21B | 1.23B | 1.24B | 1.25B | 1.23B | 1.22B | 1.23B | 1.23B | 1.22B | 1.21B | 1.16B | 1.11B | 1.03B | 1.02B | 993M | 997M | 1B | 1.01B | 1.03B | 1.03B | 1.03B | 1.02B | 1.04B | 984.98M | 981.83M | 957.94M | 937.25M |
International credit quality volatility
According to the provided quarterly data, BNS saw net interest income growth peak at 13.5% in 2025Q4 before decelerating to 4.8% by 2026Q2, suggesting that the bank is struggling to maintain momentum in its core interest-earning activities amidst a challenging interest rate environment.
The moderation in NII growth appears to reflect the difficulty of balancing loan volume expansion against rising funding costs. Investors should monitor whether the bank's strategic pivot toward North American markets can offset the cooling interest income trends observed in its international retail segments.
As reported in financial statements, the bank's net interest margin has remained stagnant at 0.4% for the majority of the last ten quarters, indicating that asset yields are failing to outpace the rising costs of deposits and wholesale funding across its diverse geographic footprint.
This lack of margin expansion suggests that BNS is currently unable to leverage its Pacific Alliance presence to capture higher spreads. The persistent 0.4% NIM warrants further investigation into whether competitive pressures in the Canadian mortgage market are forcing the bank to accept lower returns on new originations.
Based on reported figures, the efficiency ratio has shown significant instability, swinging from a low of 5.3% in 2024Q2 to 28.9% in 2026Q2, which complicates the assessment of management's ability to control non-interest expenses while navigating complex international regulatory and operational requirements.
The extreme fluctuations in the efficiency ratio appear to be heavily influenced by accounting adjustments rather than purely operational improvements. Analysts should look past these headline figures to determine if the underlying cost base is truly being optimized or if structural expenses remain stubbornly high.
Data from recent filings indicates that provision for credit losses has stabilized at $1.2 billion in 2026Q2, following a period of extreme volatility in 2024 where negative provisions created significant distortions in the bank's reported income statement and overall credit risk profile.
The return to consistent, positive provisioning levels suggests a more normalized approach to credit risk management under IFRS 9. However, the sustained level of provisions may indicate that the bank is bracing for potential asset quality deterioration within its international retail loan portfolios.
As indicated by the quarterly data, non-interest fee income has fluctuated significantly, reaching $4.1 billion in 2026Q2, which highlights a reliance on transaction-based revenue that may be sensitive to the broader economic health of the bank's diverse international and domestic markets.
The variability in fee income suggests that BNS has not yet achieved a stable, recurring revenue stream from its wealth management and banking services. Investors should monitor whether the bank's strategic focus on North American connectivity can drive more predictable, fee-based growth in future periods.
Quick answers to the most common questions about buying BNS stock.
The Bank of Nova Scotia (BNS) is profitable, generating $7.79B in net income for the fiscal year ending 2025 with a net profit margin of 10.6%.
The Bank of Nova Scotia (BNS) reported an operating income of $10.51B, resulting in an operating profit margin of 14.4%. This margin reflects the operational efficiency of the business before interest and taxes.
The Bank of Nova Scotia (BNS) generated $32.38B in gross profit for the year, representing a gross profit margin of 44.3%. This demonstrates the company's core pricing power and production efficiency.