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What Bank of Nova Scotia (TSX:BNS)'s 3,000-Job Cut and Market Refocus Means For Shareholders

Simply Wall St · 5d ago
  • In late 2025, Bank of Nova Scotia cut at least 3,000 jobs as part of a restructuring program, mainly in areas with limited growth prospects, while refocusing on its core markets in Mexico, the U.S., and Canada.
  • Despite taking a restructuring charge, the bank reported higher-than-expected profits in its global banking and markets business, highlighting efficiency gains from its realignment efforts.
  • We’ll now examine how this restructuring, particularly the large workforce reduction in slower-growth areas, may reshape Bank of Nova Scotia’s investment narrative.

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Bank of Nova Scotia Investment Narrative Recap

To own Bank of Nova Scotia, you need to believe its refocus on core North American and Mexican markets can offset slower growth and credit concerns elsewhere. The recent 3,000-job restructuring appears aligned with cost control and efficiency, but does not materially change the near term risk around Latin American volatility or the key catalyst of improving profitability in core banking and markets.

Among recent announcements, the Q4 2025 earnings release stands out, with net income of CA$2,219 million and full year net income of CA$7,789 million alongside restructuring charges. For investors, this pairing of headcount reductions with solid global banking and markets profits is central to assessing whether expense savings and business mix shifts can support returns while the Canadian and Mexican exposures remain under close watch.

But investors should also be aware that concentrated exposure to the Canadian mortgage market could...

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 about a CA$3.3 billion earnings increase from CA$6.7 billion today.

Uncover how Bank of Nova Scotia's forecasts yield a CA$100.27 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 members of the Simply Wall St Community currently see Bank of Nova Scotia’s fair value between CA$75.22 and CA$157.98, reflecting very different expectations. When you combine this spread with the bank’s efforts to trim underperforming operations, it underlines how important it is to weigh both cost cuts and regional risks when thinking about future performance.

Explore 10 other fair value estimates on Bank of Nova Scotia - why the stock might be worth as much as 58% more than the current price!

Build Your Own Bank of Nova Scotia Narrative

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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.