The Bank of Nova Scotia

Record profitability + faster-than-planned ROE achievement - Q3 was a record quarter with EPS of $2.28 (+21% YoY) and all-bank positive operating leverage for the 10th straight quarter. - ROE reached 14.2% (+170 bps YoY) and management emphasized they hit their “14%+ ROE” target sooner than projected, saying it’s not a ceiling.

Capital strength + shareholder returns (buybacks/dividends) - CET1 ended at 13.1%; management deployed capital with 23 bps to organic growth and repurchased 8.6M shares (about 20 bps capital usage). - Total capital returned over last 12 months: $8.3B via share buybacks and dividends. - Medium-term capital posture: prioritize organic growth first, then buybacks, then small tuck-in acquisitions, while maintaining strong ratios.

Revenue/earnings drivers: mix shift, fee income, efficiency—offset by investment spending - Net interest income +12% YoY (NIM +18 bps YoY; flat QoQ due to offsetting segment moves). - Noninterest income +21% YoY, led by banking/wealth, underwriting & advisory, and fees/commissions. - Expenses +14% YoY, driven by share-based compensation and technology spend (technology spend +16% to $1.5B), but still produced pretax pre-provision profit growth of +18% YoY and improved productivity ratio to 52.5% (-90 bps YoY). - Good: demonstrated sustained operating leverage. - Bad/pressure: expense growth is still meaningful due to strategic investment (frontline + technology + performance comp).