The Bank of Nova Scotia

The stable outlook reflects S&P Global Ratings' expectation that over the two-year outlook horizon, BNS will continue to post strong operating performance and manageable credit quality metrics and will maintain its conservative underwriting standards. We expect the S&P Global Ratings' forecast RAC ratio will be near 8% (7.9% at second-quarter 2023), reflecting an operating environment that is being challenged by elevated interest rates and a slowing Canadian economy. We expect any capital pressures will be somewhat offset by low RWA growth (in line with low loan growth), and limited share repurchases. The outlook also reflects our assessment of a moderately high likelihood of extraordinary government support, which is unlikely to change. We could lower our rating if: Credit losses were

...The bank's strong position in its domestic retail and commercial banking franchise should hold steady alongside diversified international banking operations. The Bank of Nova Scotia (BNS) benefits from a longstanding and well-established Canadian retail and commercial banking franchise that provides stability to its operating performance. As it is for peers, revenue is diversified by business segment and has provided BNS with a balance between stable interest income and reliable fee income sources. Geographic diversification remains key to BNS' strategy and it is the only Canadian bank with major exposures across the Americas. Over the years, BNS has gradually scaled back its international banking footprint by exiting noncore countries and operations, which has reduced its risk profile and earnings volatility. In early 2023, the bank hired a new CEO and has initiated a strategic refresh, which, among other initiatives, is aimed at improving the risk-return profile of the overall bank....

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