The Bank of Nova Scotia (BNS) Scotiabank Financials Summit summary

Opening remarks and industry context

• The summit features leading Canadian financial CEOs discussing strategies, performance, and sector outlooks.

• The sector has faced challenges including a pandemic, inflation, rapid rate hikes, and banking failures, but remains resilient.

• Optimism is driven by anticipated rate cuts and the potential for a soft economic landing.

• The Canadian economy's resilience and adaptability are highlighted as reasons for hope.

Strategic transactions and capital management

• Recent acquisition of a stake in KeyCorp was driven by favorable valuation and strategic fit.

• A five-year standstill agreement precludes full acquisition of KeyCorp in the near term.

• Capital ratios are targeted at 12.5%, with flexibility for future deployment as earnings grow.

• Share buybacks remain a potential lever, with decisions expected in 2025.

Rate sensitivity and financial outlook

• Falling rates are expected to benefit net interest income, with most impact seen in 2025.

• Guidance for 5%-7% earnings growth into 2025 remains unchanged.

• Balance sheet improvements include higher CET1, lower loan-to-deposit ratio, and reduced wholesale funding.