The Bank of Nova Scotia

Strong “beat” on profitability + capital returns (good / surprising) - Record Q3 earnings: EPS $2.28, up 21% YoY; ROE 14.2%, up 170 bps YoY. - All-bank positive operating leverage for the 10th straight quarter; productivity ratio improved 90 bps YoY to 52.5%. - Capital strength: CET1 ended at 13.1% while still deploying capital. - Shareholder returns: repurchased 8.6M shares in Q3 (about 20 bps capital usage) and returned $8.3B over the last 12 months via buybacks + dividends.

Management is bringing ROE target forward—and says 14% isn’t a ceiling (good / opportunity) - Bank says it exceeded medium-term objectives and achieved its 14%+ ROE target sooner than expected. - They emphasize sustainable improvements driven by: - Canadian Banking (sequential ROE improvement +160 bps to 19.4%) - better mix, fee income growth, and ongoing productivity gains - Forecast/expectation: continue improving ROE and close the gap with peers; management does not view 14% as a ceiling.

Canadian Banking momentum: deposit stability + better mix + improving credit (good / forecasts) - Canadian Banking ROE lever: continued margin expansion (5th consecutive quarter) and strong fee income (mutual funds, credit cards, insurance). - Loan & deposit trends: commercial loans up 3% sequentially (after 2% in Q2); mid-market + small business lending up 3% QoQ and 10% YoY. - Credit cards quality improving: new acquisition premium mix now 45% vs 35% last year; balances up 3% QoQ; expect further improvement by year-end supported by purchase volumes. - Credit: PCL ratio decreased 8 bps sequentially to 42 bps, with lower performing and impaired PCLs. - Outlook: management expects continued mix improvement and that credit trends should keep supporting earnings.