BANK OF NOVA SCOTIA Annual Report - How They Did This Year

Hey there! Let's dive into how BANK OF NOVA SCOTIA performed this year, based on the latest info from their annual filing. Think of this as a chat between friends about their investments, not a stuffy financial report!

What's New This Year?

This year brought some interesting shifts and important details about how the bank is doing and where it's heading.

A Dip in a Key Money-Maker: One of the most important ways a bank makes money is through "interest income" – that's the money they earn from loans and investments. This year, that number saw a bit of a dip. Their interest income from financial assets measured at amortized cost and FVOCI (which is just a fancy way of saying certain types of loans and investments) came in at $56,404 million for 2025. That's down from $59,871 million in 2024. This is something to keep an eye on, as it's a core part of their earnings.

Big Strategic Moves in International Markets: Scotiabank made some significant changes to its international footprint:

• Selling Off Some Operations: In a big move, the bank agreed to sell its banking operations in Colombia, Costa Rica, and Panama. This deal was completed on December 1, 2025. This suggests a strategic decision to streamline or refocus their international efforts.
• Doubling Down Elsewhere: At the same time, they actually increased their ownership in Scotiabank Colpatria S.A. (also in Colombia) to 56% in May 2025. This shows they're not pulling out of all international markets, but rather being more selective about where they invest and grow. It's like selling a few houses you own to buy a bigger stake in another one that you think has more potential.

Understanding the Numbers (A Little Behind the Scenes):

• Changes in Reporting: If you're looking at how different parts of the bank (like Canadian Banking or International Banking) performed, know that the bank changed how it allocates certain income and costs starting in Q1 2025. This means they've re-jigged the numbers for last year too, so comparisons are fair. It's like changing the rules of a game mid-season but then applying the new rules to past games so everyone's on the same page.
• Tax Impact on Revenue: Also, starting January 1, 2024, a change in how they account for taxes on certain Canadian shares meant that their "taxable equivalent basis" revenue figures for fiscal 2024 were a bit lower. This is a technical accounting detail, but it's good to know it can affect how revenue looks on paper.
• Interest Income Presentation: Just so you know, when they talk about "interest income," it's usually presented after subtracting the interest they paid out. This gives a clearer picture of their net earnings from interest.

A Note on How They Handle Risk (for the really curious!): The bank has certain types of debt called Non-Viability Contingent Capital (NVCC) debentures. This is a fancy way of saying that if the bank ever got into serious trouble and was deemed "non-viable" by regulators, these debentures could automatically convert into common shares of the bank. This is a safety net designed to help the bank absorb losses and keep it afloat, but it could mean more shares outstanding if such an event ever occurred. It's a regulatory requirement that helps protect the financial system.

That's a quick look at some of the key updates from this year's filing!