The ratings on The Bank of Nova Scotia (Scotiabank) reflect its market position as one of five dominant universal banks in Canada, its broad business mix, geographic diversification, and the efficiency of its operations. The bank has a track record of generating strong and consistent earnings performance and has a very solid capital base even when adjusting for higher risk activities. These strengths are offset somewhat by the higher risk profile of Scotiabank's corporate lending activities and its investments in international banking subsidiaries. Based on the past three years' results, about 40% of the bank's earnings were derived from its domestic banking operations, 28% from global wholesale or corporate and investment banking, 26% from its international banking operations, and about
