Revenue growth is moderating with NII growth decelerating to 6.8% in 2026Q3, while the net interest margin has remained flat at 0.4% for ten consecutive quarters, indicating that higher asset yields are being fully offset by rising funding costs.
The Bank of Nova Scotia (BNS) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 22.56B | 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 % | 32.98% | 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 | 54.68B | 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 | 32.12B | 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 | 4.59B | 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 | 16.83B | 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 % | 42.73% | 41.98% | 248.96% | 370.92% | -15.35% | 25.9% | 8.36% | -17.42% | 0.91% | 15.8% | 20.69% | 20.41% | 22.81% | 13.96% | 21.98% | -18.76% | -19.16% | -116.31% | 364.37% | 590.51% | 9691.08% | -137.88% | -53.77% | -106.67% | -128.29% | 1313.35% | 510.02% | 594.92% | 395.94% | 1101.89% | 275.97% |
| Total Net Revenue | 39.39B | 37.1B | -12.92B | -6.75B | 15.71B | 22.89B | 18.9B | 14.63B | 16.34B | 17.86B | 18.02B | 16.45B | 15.94B | 13.19B | 12.78B | 7.59B | 7.24B | 3.85B | -2.86B | -1.45B | -66.81M | 2.47B | 3.71B | 2.89B | 2.92B | -511.03M | -1.27B | -944M | -1.48B | -371M | -1.91B |
| Revenue Growth % | 9.41% | 387.04% | -91.47% | -142.98% | -31.38% | 21.1% | 29.2% | -10.47% | -8.49% | -0.91% | 9.55% | 3.19% | 20.85% | 3.22% | 68.37% | 4.91% | 87.92% | 234.38% | -97.98% | -2065.89% | -102.71% | -33.43% | 28.38% | -1.22% | 672.11% | 59.7% | -34.32% | 36.17% | -298.65% | 80.54% | 30.67% |
| Non-Interest Expense | 21.44B | 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 | 54.42% | 58.96% | -151.97% | -470.92% | -19.3% | -80.47% | -121.54% | -132.44% | -33.11% | -43.78% | -49.24% | -46.09% | -43.08% | -38.07% | -26.97% | -16.61% | -17.29% | 21.56% | -233.71% | -453.03% | -6762.43% | 64.35% | -3.98% | 6.62% | -17.95% | -695.96% | -329.97% | -356.14% | -245.77% | -712.4% | -179.01% |
| Operating Income | 13.41B | 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 % | 34.03% | 28.33% | -102.01% | -128.74% | 179.03% | 54.59% | 44.03% | 74.25% | 139.57% | 106.01% | 94.69% | 97.65% | 102.3% | 118.57% | 117.18% | 211.16% | 197.01% | 397.06% | -648.28% | -1316.14% | -23536.68% | 485.75% | 270.7% | 358.63% | 345.18% | -2705.9% | -1029.02% | -1188.24% | -734.96% | -2437.47% | -460.34% |
| 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 | 13.18B | 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 % | 33.47% | 28.33% | -76.79% | -144.5% | 82.34% | 56.04% | 44.42% | 77.04% | 67.97% | 57.55% | 52.15% | 55.12% | 58.34% | 64.13% | 62.96% | 87.98% | 84.09% | 124.52% | -133.73% | -353.01% | -6661.67% | 164.34% | 100.43% | 112.92% | 82.05% | -595.96% | -229.97% | -256.14% | -145.77% | -612.4% | -90.98% |
| Income Tax | 3.28B | 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 % | 24.92% | 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 | 10.01B | 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 % | 25.41% | 21% | -60.03% | -109.78% | 63.14% | 42.05% | 35.86% | 57.35% | 52.31% | 44.83% | 39.5% | 42.64% | 44.36% | 48.68% | 48.85% | 68.18% | 58.59% | 92.13% | -109.59% | -279.53% | -5356.88% | 130.04% | 79.05% | 85.75% | 61.48% | -424.53% | -151.89% | -164.3% | -94.25% | -408.09% | -56.09% |
| Net Income Growth % | 38.8% | 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) | 9.9B | 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) | 11.45 | 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 % | 47.69% | -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 | 874.02M | 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 |
Quick answers to the most common questions about buying BNS stock.
For fiscal year 2025, The Bank of Nova Scotia (BNS) reported total revenue of $37.10B.
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 21.0%.
The Bank of Nova Scotia (BNS) reported an operating income of $10.51B, resulting in an operating profit margin of 28.3%. 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 87.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Elevated international credit costs
NII Growth Decelerates from Double-Digit Pace
Net interest income growth has moderated to 6.8% year-over-year in 2026Q3, a significant slowdown from the 13.5% growth seen in 2025Q4, suggesting the tailwinds from prior rate hikes are fading as the cycle matures.
The sequential deceleration in NII growth from double-digit levels to high single digits indicates that the benefit from asset repricing is largely captured, and the bank is now more reliant on volume growth for expansion. This trend implies that future NII trajectory will be heavily dependent on loan demand in the Canadian mortgage market and commercial lending activity across its North American corridor, rather than further rate-driven margin expansion.
NIM Stagnation Amidst Funding Cost Pressure
The net interest margin has remained flat at 0.4% for the past ten quarters, indicating that higher asset yields have been almost entirely offset by rising funding costs, a dynamic that warrants close monitoring for margin compression.
The persistent NIM at 0.4% suggests the bank is operating in a challenging spread environment where deposit betas have caught up to asset repricing. This stagnation, when viewed alongside the improving efficiency ratio, implies that profitability gains are being driven by cost control and fee income rather than core lending spreads, which may limit earnings upside if credit demand softens.
Efficiency Ratio Improves but Remains Elevated
The efficiency ratio has improved markedly from 100.0% in 2024Q4 to 53.9% in 2026Q3, yet it remains above the 50% threshold, suggesting that while restructuring efforts are yielding results, the cost base is still high relative to the Canadian peer group.
The significant improvement in the efficiency ratio indicates that management's cost-cutting initiatives are gaining traction, but the current level still trails peers like TD (39.1% operating margin) and RY (38.6%). This gap suggests that BNS's international operations and branch network carry a structural cost disadvantage, and achieving peer-level efficiency will require further rationalization of its global footprint.
Provision Volatility Signals International Credit Stress
Provision for credit losses has fluctuated between $1.0B and $1.4B over the past eight quarters, with the recent $1.1B in 2026Q3 indicating persistent, elevated credit costs that are likely concentrated in the international retail portfolio.
The sustained elevated provision levels, especially compared to the negative provision in 2024Q2, suggest that the post-pandemic credit normalization in Pacific Alliance markets is proving more challenging than anticipated. This pattern implies that the international segment's higher yields come with commensurately higher credit risk, and investors should monitor the PCL ratio for signs of further deterioration in unsecured consumer lending.
Fee Income Provides Stable Earnings Diversification
Non-interest income has grown steadily to $4.4B in 2026Q3, representing 43.1% of total revenue, which provides a valuable offset to NII volatility and suggests the wealth management and banking fees are performing resiliently.
The consistent fee income contribution above 40% of revenue indicates that BNS has successfully diversified beyond pure interest rate sensitivity, particularly through its Global Wealth Management segment. This stability is a positive counterbalance to the international credit volatility, though the fee mix should be monitored for any dependency on transaction-based revenues that could be cyclical.
NIM Stagnation Challenges Earnings Durability
The net interest margin's persistent flatline at 0.4% over ten quarters, despite a rising rate environment, suggests that the bank's core lending profitability is not expanding, which could undermine the sustainability of earnings growth if non-interest income falters.
This stagnation indicates that the bank's asset-liability management is not generating incremental spread income, which is a critical concern for a bank whose primary earnings driver is net interest income. If the NIM does not expand as the rate cycle potentially turns, the bank's ability to grow earnings will be almost entirely dependent on loan volume growth and fee income, both of which face their own cyclical headwinds. This structural margin pressure is a key reason for the valuation discount to peers and warrants close scrutiny of the deposit franchise's pricing power.