Strong Q3 Earnings and Growth Metrics: The Bank of Nova Scotia reported adjusted earnings of $2.5 billion ($1.88 per share), a 15% increase year-over-year, with pre-tax pre-provision earnings up 17%. Return on equity (ROE) improved to 12.4%, up 110 basis points year-over-year.

Strategic Focus on Capital Deployment: The bank is prioritizing growth and optimizing capital allocation to enhance shareholder returns. Although the CET1 ratio stands at a strong 13.3%, management is considering buybacks while being cautious about maintaining a buffer above regulatory minimums. For Q3, the bank repurchased 3.2 million shares, using five basis points of its capital, demonstrating a commitment to shareholder returns.

Credit Quality Improvement: The performing provision for credit losses has improved, dropping to four basis points due to better credit performance, specifically in Canadian retail, with impaired PCL ratio declining to 51 basis points. This reflects ongoing management of credit risk amid trade uncertainties and macroeconomic challenges.