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Bank of Nova Scotia

BNS: XNYS (USA)

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Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$46.00	Jkntxwg	Vwfnlxqkh

Bank of Nova Scotia Earnings: Solid Results, but Provisioning Will Be Headwind to Earnings Growth

Feb 27, 2024

Narrow-moat-rated Bank of Nova Scotia reported solid results that were largely in line with our expectations. Net revenue increased 6% year over year and 2% from last quarter to CAD 8.4 billion, with fees and net interest income contributing to the growth. Adjusted net income fell 6% from last year but rose 35% from last quarter to CAD 2.2 billion. The annual decrease and sequential increase were primarily driven by the bank’s credit provisioning expense, which was CAD 962 million versus CAD 638 million last year and CAD 1.25 billion last quarter. As we incorporate these results, we do not plan to materially alter our CAD 70/$52 fair value estimate. We see the shares as only modestly undervalued.

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