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What Bank of Nova Scotia (TSX:BNS)'s Strong Q4 Results and Capital Moves Mean For Shareholders

Simply Wall St · 2d ago
  • In early December 2025, Bank of Nova Scotia reported fourth-quarter and full-year 2025 results showing higher quarterly net interest income and net income, affirmed a Common Shares Dividend No. 626 of $1.10 per share payable on January 28, 2026, completed a share repurchase of 10,800,000 shares for $913 million, and issued $15 million of 4.63% Senior Notes due December 3, 2032.
  • These updates highlight a bank simultaneously growing quarterly profitability, returning capital through dividends and buybacks, and raising longer-dated funding via a callable Eurobond issue.
  • Next, we’ll consider how the stronger quarterly earnings and capital return decisions affect Bank of Nova Scotia’s existing investment narrative.

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Bank of Nova Scotia Investment Narrative Recap

To own Bank of Nova Scotia, you need to believe in its ability to grow earnings across Canada and its international markets while managing credit and housing risks. The latest quarter’s higher net interest income and net income support that thesis, but do not materially change the key near term catalyst of improving loan growth or the ongoing risk from potential credit deterioration in Latin America and a weaker Canadian mortgage market.

The most relevant update here is the affirmed Common Shares Dividend No. 626 of $1.10 per share, following a period of higher quarterly profitability. For investors watching earnings momentum as a catalyst, a maintained dividend alongside increased net income can reinforce confidence in the bank’s capacity to support capital returns, even as it continues to face slower loan growth in Canada and competitive pressure from non bank lenders.

Yet investors should be aware that Bank of Nova Scotia’s heavy exposure to the Canadian housing market could still...

Read the full narrative on Bank of Nova Scotia (it's free!)

Bank of Nova Scotia’s narrative projects CA$39.8 billion revenue and CA$10.0 billion earnings by 2028. This requires 7.9% yearly revenue growth and an earnings increase of about CA$3.3 billion from CA$6.7 billion today.

Uncover how Bank of Nova Scotia's forecasts yield a CA$99.07 fair value, in line with its current price.

Exploring Other Perspectives

TSX:BNS 1-Year Stock Price Chart
TSX:BNS 1-Year Stock Price Chart

Ten fair value estimates from the Simply Wall St Community span from $75.22 to $156.23 per share, showing how far apart individual views can be. When you set those against the ongoing risk of Latin American earnings volatility, it underlines why many people prefer to weigh several independent perspectives before deciding how Bank of Nova Scotia might fit into their portfolio.

Explore 10 other fair value estimates on Bank of Nova Scotia - why the stock might be worth as much as 56% more than the current price!

Build Your Own Bank of Nova Scotia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

  • A great starting point for your Bank of Nova Scotia research is our analysis highlighting 3 key rewards that could impact your investment decision.
  • Our free Bank of Nova Scotia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bank of Nova Scotia's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.