The Bank of Nova Scotia (BNS): Business Model Canvas [Dec-2025 Updated]

You're looking to crack the code on how The Bank of Nova Scotia is positioning itself for the next decade, and honestly, mapping out their Business Model Canvas reveals a sharp focus on the North American corridor. Based on their reported C$37.74 billion in 2025 revenue, you can see their strategy isn't just about maintaining the status quo; it's about leveraging key partnerships, like that minority stake in KeyCorp, to fuel core lending and digital transformation across Canada, the US, and Mexico. Dive into the nine blocks below to see exactly how their C$1.4 trillion in total assets are deployed to serve everyone from mass-market retail clients to global institutions, giving you a clear view of their engine.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Key Partnerships

The Bank of Nova Scotia (BNS) relies on strategic external relationships to execute its North American focus and digital transformation strategy.

Strategic Minority Stake in KeyCorp (14.9%) for US Exposure

The Bank of Nova Scotia (BNS) solidified its U.S. exposure through a strategic minority investment in KeyCorp. This investment, completed by December 27, 2024, resulted in The Bank of Nova Scotia (BNS) owning approximately 14.9% of KeyCorp's common stock. The total cash consideration for this stake was approximately US$2.8 billion, with the final tranche investment being about $2.0 billion. The acquisition price per share was $17.17. KeyCorp, as of September 30, 2024, held assets of approximately $190 billion. For context, The Bank of Nova Scotia (BNS) reported assets of approximately $1.4 trillion at October 31, 2024. Upon completion, The Bank of Nova Scotia (BNS) gained the right to designate two individuals to KeyCorp's Board of Directors.

Technology Alliances with Google Cloud and NVIDIA

The Bank of Nova Scotia (BNS) leverages alliances with major technology providers to advance its AI and cloud infrastructure. The partnership between Google Cloud and NVIDIA is critical, with NVIDIA's Blackwell platform becoming available to Google Cloud customers in early 2025. This collaboration involves Google Cloud being an early adopter of NVIDIA's GB300 NVL72 rack-scale solution and the RTX PRO 6000 Blackwell Server Edition GPU, both introduced at GTC 2025. Furthermore, joint initiatives support startups, offering some members of Nvidia Inception up to $350,000 of Google Cloud credits.

Here's a look at the scale of the underlying technology infrastructure powering these advancements:

Payment Processing Partners like Chase Paymentech

For merchant services and payment processing capabilities, The Bank of Nova Scotia (BNS) partners with J.P. Morgan Chase. Chase Payment Solutions processes more than $2 trillion worldwide in annual debit and credit card volume. In 2024, JPMorgan Chase & Co.'s Merchant Services unit surpassed the $2 trillion sales mark. For reference, JPMorgan Chase & Co. reported an estimated U.S. total processing volume of $2.6T for 2024.

FinTech Collaborations, e.g., Nova Credit

The Bank of Nova Scotia (BNS) uses FinTech collaboration to serve newcomers, notably through its partnership with Nova Credit, which utilizes the Credit Passport® service. This allows recent immigrants to use their foreign credit history when applying for The Bank of Nova Scotia (BNS) products. Since the initial launch in 2023, this capability has helped newcomer clients secure access to credit or a higher credit limit of up to 2x what they might have otherwise qualified for. Nova Credit announced a $35 million Series D funding round in October 2025 to accelerate its platform growth.

The Bank of Nova Scotia (BNS) commitment to this segment is also supported by its ScotiaRISE initiative, a 10-year, $500 million community investment program.

Global Correspondent Banking Network for Cross-Border Trade

The Bank of Nova Scotia (BNS)'s global operations are intrinsically linked to the evolution of cross-border payment standards. The final deadline for switching the SWIFT cross-border network over to the ISO 20022 standard is November 2025. The market for cross-border spending is significant, projected to grow from $194.6 trillion in 2024 to a projected $320 trillion by 2032. This environment drives a trend toward consolidation in correspondent banking relationships.

Key statistics related to the correspondent banking landscape include:

• Number of correspondent banking relationships reduced by 25% from 2010 to 2019.
• SWIFT cross-border payment instructions must transition to ISO 20022 by November 22, 2025.
• Global cross-border volumes increased by 2% during the pandemic period, despite relationship reductions.

The Bank of Nova Scotia (BNS) must ensure its systems are natively compatible with the new ISO 20022 scheme to maintain efficient cross-border operations.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Key Activities

You're looking at the core engine room of The Bank of Nova Scotia (BNS) as of late 2025, focusing on what the bank actually does to generate revenue and deploy capital. It's all about execution across its four main segments: Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets.

Core lending and deposit-taking across the Americas

The foundation remains traditional banking, but with a clear focus on balance sheet health. For the fiscal year ended October 31, 2025, the bank reported total assets of approximately $1.5 trillion. You saw a strategic shift in lending activity; for instance, at the Q2 2025 mark, loan balances had declined 8% year-over-year, which was part of a broader balance sheet optimization effort. However, deposits showed resilience, being up 4% quarter-over-quarter and year-over-year by Q4 2025. This focus on funding stability meant the loan-to-deposit ratio improved significantly, moving to 104% in Q3 2025, down from 116% at the end of Q4 2022. Also, retail deposits and investments across the footprint have grown at a 6% compound annual growth rate over the last two years.

Capital allocation to priority markets (Canada, US, Mexico)

The Bank of Nova Scotia is deploying incremental capital with a defined hierarchy: Canada first, the US second, and Mexico third. This strategy reinforces the North American corridor. A concrete example of this is the investment in the United States, where the U.S. earnings contribution grew to 14% of the total earnings profile in fiscal 2025. This followed the completion of its approximately 14.9% equity stake in U.S. regional bank KeyCorp in late 2024. In Mexico, a key priority market, international wealth management earnings saw 20% growth in fiscal 2025. The bank is also focused on driving value in its core Canadian market, though it faced headwinds like higher provision for credit losses and a lower margin in Canadian Banking adjusted earnings for FY2025.

Digital transformation and operational streamlining

Driving efficiency is a major activity, often resulting in organizational changes. The bank delivered positive operating leverage for the sixth straight quarter as of Q3 2025, showing that productivity efforts are sticking. The goal is to make it easier to do business, which involves simplifying processes. For example, the bank took a restructuring charge of $352 million after-tax in fiscal 2025, which included provisions for simplifying Canadian Banking and regionalizing activities across its international footprint. The productivity ratio improved to 51% in Q2 2025, supporting a medium-term run-rate savings commitment of CAD 800 million.

Investment banking and capital markets underwriting

Global Banking and Markets (GBM) is a capital-light business that delivered strong results, especially in Q4 2025. This segment's activities include corporate and investment banking, underwriting, and capital markets trading. In Q4 2025, GBM earnings reached $519 million, a 50% increase year-over-year, driven by strong capital markets performance. To give you a sense of the fee-based strength, underwriting and advisory fees in Q2 2025 had grown a strong 26% year-over-year. The bank is focused on generating better results with less capital in this area.

Wealth management and advisory services (AUM of $407 billion)

Global Wealth Management is a significant earnings driver, focusing on advice-driven client relationships. As of Q2 2025, Assets Under Management (AUM) stood at $407 billion, and Assets Under Administration (AUA) grew to over $750 billion by the end of fiscal 2025. This segment saw adjusted earnings of $450 million in Q4 2025, marking a 17% year-over-year increase, supported by higher mutual fund fees and brokerage revenues. The bank also launched four new private asset funds in fiscal 2025, tailoring solutions for wealth and institutional investors.

Here's a look at the segment financial performance for the fiscal year ended October 31, 2025, which helps frame these activities:

The overall adjusted net income for the full fiscal year 2025 was $9,510 million, up from $8,627 million the previous year. Finance: draft 13-week cash view by Friday.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Key Resources

You're looking at the core assets that power The Bank of Nova Scotia's operations as of late 2025. These aren't just line items; they are the engines driving the strategy to be the client's most trusted financial partner. Honestly, the sheer scale of capital and network is what sets BNS apart in the Big Five.

Strong capital base with 13.2% CET1 ratio

The Bank of Nova Scotia maintains a very solid capital buffer, which is crucial for weathering any near-term economic bumps. As of the end of fiscal 2025, the Common Equity Tier 1 (CET1) capital ratio stood at 13.2%. This figure was achieved after allocating capital to share repurchases of approximately 12 basis points in the quarter, showing a commitment to both balance sheet strength and shareholder return. The Tier 1 capital ratio was 15.2% and the Total capital ratio was 16.9% as at July 31, 2025.

Extensive branch network across Canada and International Banking footprint

The physical and digital reach remains a massive resource. While the bank is simplifying its Canadian operations, the network is still substantial. In Canada alone, there were 895 Scotiabank locations as of August 22, 2025. Globally, the bank served customers through a network of 2,139 branches and offices as of October 31, 2024, supporting its International Banking footprint across 15+ countries.

Proprietary technology platforms and digital assets (e.g., Tangerine)

The investment in technology is a clear resource, evidenced by the fact that expenses grew in fiscal 2025 due to higher technology costs. The digital offering is anchored by Tangerine Bank, which provides a self-directed digital banking solution to millions of clients within Canadian Banking. The bank is planning to further build out its global transaction banking platform and enhance technology platforms, including AI investments, in 2026.

C$1.4 trillion in total assets (as of July 2025)

The balance sheet size reflects its status as a major North American lender. As of April 30, 2025, The Bank of Nova Scotia reported total assets of approximately $1,415 Billion. This scale underpins its ability to execute large-scale lending and investment banking activities across its priority markets in Canada, the U.S., and Mexico.

Highly skilled financial and technology talent

The people are the ultimate resource, especially as the bank focuses on value over volume. As of April 30, 2025, The Bank of Nova Scotia had 86,746 employees on a full-time equivalent basis. The bank is actively freeing up capacity to invest in revenue-generating sales staff, indicating a strategic focus on deploying this talent effectively.

Here's a quick look at some of the key financial and operational metrics supporting these resources:

The bank also saw its Global Wealth Management business administer over $700 Billion in assets as of October 31, 2024, a testament to the depth of its advisory talent.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Value Propositions

Full-service banking for retail, commercial, and corporate clients

• Canadian Banking provides a full suite of financial advice and banking solutions to over 11 million customers.
• Retail deposits and investments have grown at a 6% compound annual growth rate over the last two years.
• The Mortgage+ program saw 30% of new clients open a Scotiabank credit card.
• 95% of new Mortgage+ clients retained their day-to-day accounts after one year.

North American trade and payment corridor expertise

• Half of Global Banking & Markets earnings now come from the United States in fiscal 2025.
• A new cash-management platform brought in 15,000 corporate clients in 2025.

Specialized wealth management and private banking advice

• Global Wealth Management earnings increased 17% for the full fiscal year 2025.
• Assets under management grew 16% to $430 billion for the full year 2025.
• Assets under administration rose 13% to almost $800 billion for the full year 2025.
• In Q3 2025, assets under management climbed to $407 billion, a 12% year-over-year increase.

Digital-first, low-cost banking through Tangerine

• Tangerine Bank ranks highest among midsize banks for customer satisfaction in the JD Power 2025 Canada Retail Banking Satisfaction Study.
• Tangerine's Loan-to-Deposit Ratio (LDR) decreased to 21% in FY2023.

Global Banking and Markets access for large-scale projects

The performance of the Global Banking and Markets segment in fiscal 2025 shows significant growth, particularly in the fourth quarter.

• The revenue increase was thanks to a 43% jump in trading and advisory fees.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Customer Relationships

You're looking at how The Bank of Nova Scotia (BNS) connects with its clients as of late 2025, focusing on deep engagement over sheer numbers.

Dedicated Relationship Managers for commercial and wealth clients

Global Wealth Management (GWM) is explicitly growing the number of relationship managers across its Private Bank and ScotiaMcLeod operations to build deeper, more advice-driven client relationships. This segment serves over 2 million investment fund and advisory clients across 12 countries. GWM saw strong momentum, with adjusted earnings up 17% year-over-year in the second quarter of 2025, and assets under management (AUM) growing 16% year-over-year to $430 billion by the end of the fourth quarter of 2025. In the first quarter of 2025, GWM adjusted earnings were up 22% year-over-year, with AUM at $396 billion.

Self-service digital platforms and mobile apps

The Bank of Nova Scotia is executing a strategy to be a 'digitally forward bank' that blends its branch network with mobile service capabilities. Industry-wide, 72% of global banking customers prefer using mobile apps for core banking services as of 2025. In the United States, approximately 83% of adults used digital banking services by late 2025. The bank's Tangerine Bank is its established digital-only offering, and the broader bank is focused on delivering innovative digital client experiences.

• Mobile apps are the main entry point for all banking services for forward-thinking banks in 2025.
• The most valued mobile banking feature to users is the ability to lock a lost or stolen card, with 83% considering it critical or important.
• The digital banking market size in the US is projected to reach nearly 216.8 million users by 2025.

Focus on earning primary client relationships (value over volume)

The Bank of Nova Scotia is explicitly prioritizing 'value over volume' in its business mix shift. Since its Q4 2023 Investor Day, the bank has added 400,000 new primary clients. Total closed referrals across the entire bank (retail, commercial, and wealth) reached CAD 15 billion for the year, marking an 18% increase over the prior year. This shows a clear metric for deepening relationships, as the bank gets better at converting new clients into actual investors.

Advisory-led model for complex financial needs

The advisory focus is evident in the cross-segment referrals, which are a direct result of clients engaging for complex needs. Global Banking and Markets saw earnings increase by 30% for the full year 2025, supported by a 28% year-to-date growth in underwriting advisory fees. The bank's vision is to be its clients' most trusted financial partner, which is supported by the fact that 78% of first-time homebuyers say a lender's reputation and trustworthiness are critical when choosing a mortgage. Also, 72% of first-time homebuyers believe having all banking products in one place is important.

Automated, personalized digital outreach

The strategy includes building out data and personalization capabilities to accelerate client acquisition. Industry trends for 2025 point to banks introducing AI assistants that serve personalized financial insights and advice through web and mobile apps. Furthermore, 59% of people want digital banking to offer simple tools and resources for learning how to manage money, which aligns with the bank's stated purpose, 'for every future,' translating societal commitment into measurable business drivers.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Channels

You're looking at how The Bank of Nova Scotia (BNS) gets its products and services to its 25 million+ clients worldwide as of late 2025.

The strategy clearly emphasizes the North American corridor-Canada, the US, and Mexico-while maintaining a presence in key international spots, though with increased scrutiny on less profitable Latin American markets.

Physical branch network in Canada and key international markets

The physical footprint in Canada remains substantial, though the bank is clearly prioritizing digital and its North American focus areas.

The Bank of Nova Scotia operates in 20+ countries across the globe. Within Canada, the bank operates in all provinces and territories except Nunavut.

The Global Wealth Management segment delivers solutions across 13 countries worldwide.

Digital and mobile banking applications

Digital channels are a core component, evidenced by the growth in user metrics, even if the latest figures are from earlier in 2025 or late 2024.

• Active mobile users reached 4.3 million, showing a 10% year-over-year increase (data as of Q2 2024).
• The digital adoption rate in Canada was 64.5% (data as of Q2 2024).
• The bank offers a self-directed banking solution through its digital-only subsidiary, Tangerine Bank.
• The bank is investing in digital capabilities to grow deposits, funds, cards, and insurance.

Automated Teller Machines (ATMs)

The Bank of Nova Scotia leverages a significant proprietary and alliance-based ATM network for convenient cash access.

The Bank of Nova Scotia is introducing Intelligent Deposit Machines (IDMs) in 2025 to allow for no-envelope cash and cheque deposits with immediate credit.

Contact centers and specialized advisory teams

Service delivery mixes centralized support with specialized, high-value advice.

• International Banking utilizes a robust network of contact centres.
• Global Wealth Management has industry-leading investment expertise, with its investment teams recognized with 24 awards (latest metric found).
• The bank aims to lead with tailored financial plans and follow with the right products, emphasizing advice over just transactions.

Third-party broker-dealers and financial advisors

Distribution extends beyond direct employees through established networks.

• The bank mentions a 'powerful advisory and distribution network across Canada and Latin America'.
• This network includes channels like Full-Service Brokerage and partnerships related to capital markets activities.
• The bank notes risks associated with the failure of third parties to comply with their obligations.

Finance: draft 13-week cash view by Friday.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Customer Segments

You're looking at the core groups The Bank of Nova Scotia serves across its global footprint as of late 2025. It's a mix, from everyday banking clients to massive institutional players.

Mass-market retail customers (including Tangerine clients)

The Bank of Nova Scotia focuses on building primary client relationships, having added 400,000 new primary clients since launching its new strategy. The Canadian Banking unit, which includes these retail clients, generated adjusted earnings of $3.4 billion for the full year 2025, a decrease of 9%.

• Retail day-to-day and savings deposits grew approximately 6% year-over-year in 2025.
• The Mortgage+ program saw 30% of new clients open a Scotiabank credit card.
• 95% of new Mortgage+ clients retained their day-to-day accounts after one year.
• The bank is acquiring clients in the Small Business segment at approximately twice the market rate.

Small and medium-sized enterprises (SME) and commercial businesses

The commercial side is deeply integrated with the retail segment, evidenced by $15 billion in combined referrals between Retail, Commercial, and Wealth in 2025, an increase of 18% year-over-year.

The overall Canadian Banking segment saw its Q2 2025 adjusted earnings drop to $613 million, down 31% year-over-year, largely due to higher provision for credit losses. Still, the bank is focused on value over volume in these relationships.

High-net-worth individuals and families (Global Wealth Management)

This segment showed strong growth in 2025, with full-year earnings increasing 17% to $1.7 billion. International Wealth specifically saw earnings jump 30% year-over-year in Q4 2025.

You can see the asset scale here:

The Q1 2025 adjusted earnings for Global Wealth Management were $416 million, up 22% year-over-year.

Large corporations and institutional investors (Global Banking and Markets)

This business line had a standout year for revenue generation. Full-year earnings were up 30%. The Q4 2025 earnings hit $519 million, a 50% increase compared to the prior year.

Key performance drivers for this segment in fiscal 2025 included:

• Underwriting and advisory fee income: up 37% versus fiscal 2024.
• Trading income: increased 21%.
• Capital markets revenues (Q4 2025): up 43%.

Customers in the North American corridor (Canada, US, Mexico)

The strategic focus on the North American corridor, encompassing Canada, the US, and Mexico, is a key driver for deposit growth. The Canadian Banking unit represents about 40% of The Bank of Nova Scotia's income.

Credit quality in the corridor shows some pressure points, reflected in the overall fiscal 2025 impaired Provision for Credit Losses (PCL) ratio of 54 basis points, which is attributed partly to pressure in parts of Mexico.

The bank also supported 49,700+ women entrepreneurs through its Scotiabank Women Initiative® programs across Canada, Chile, Jamaica, Mexico, Costa Rica, and Peru in 2025.

Finance: draft 13-week cash view by Friday.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Cost Structure

You're looking at the major outflows for The Bank of Nova Scotia (BNS) in its 2025 fiscal year, which is where the rubber meets the road for profitability. The cost structure is dominated by operational expenses and provisions set aside for potential loan defaults.

High non-interest expenses represent a significant drag, totaling C$22.52 billion in 2025. This figure reflects the scale of running a multinational bank across multiple complex jurisdictions.

The cost base is heavily influenced by ongoing strategic spending. You see significant technology and digital investment costs baked into the operating expenses. In the fourth quarter of 2025, overall expenses grew 11% year-over-year, with personnel costs and technology spending explicitly cited as key drivers for that increase.

Personnel costs are a major component, and management signaled a push for efficiency with a C$373 million restructuring charge taken in the fourth quarter of 2025. This charge was tied directly to layoffs across the Canadian banking business and within Global Banking and Markets operations in Asia, showing a clear move to streamline the workforce.

Risk management costs are substantial. The Provision for Credit Losses (PCL) for the full year 2025 reached C$4.71 billion. This was driven by higher impaired PCLs, with the fiscal 2025 impaired PCL ratio landing at 54 basis points of average loans. Management is cautiously optimistic, projecting PCLs to normalize into the high-40s to mid-50s basis-point range for 2026.

The physical footprint remains a cost factor, though less detailed in the latest reports. You still have the baseline costs associated with branch network maintenance and real estate expenses across the Canadian and international footprints, which contribute to the overall non-interest expense base.

Here's a quick look at the key cost line items from the 2025 results:

The bank achieved positive operating leverage for the full year, which is a key metric showing revenue growth outpaced expense growth:

• Full Year Revenue Growth: 12% year-over-year.
• Full Year Expense Growth: 9% year-over-year.
• Resulting Positive Operating Leverage: 3% for the year.

The focus on efficiency is clear, especially when you look at the segment performance driving the expense management narrative. The Global Banking & Markets segment delivered an ROE between 11.3% and 14.1% across the four quarters of 2025, which is considered above a normalized return level, suggesting high-cost, high-return activities are currently carrying the load.

You should track the impact of the Q4 restructuring charge on the upcoming quarters, as that C$373 million is a one-time hit meant to lower the recurring expense base going forward. Finance: draft 13-week cash view by Friday.

The Bank of Nova Scotia (BNS) - Canvas Business Model: Revenue Streams

You're looking at how The Bank of Nova Scotia (BNS) actually brings in the money across its global operations as of late 2025. It's a mix of traditional lending income and fees from advisory and trading services. Honestly, the story this year is how much the capital markets and wealth arms are contributing alongside the core lending business.

The two largest components of revenue for The Bank of Nova Scotia for the full fiscal year 2025 were Net Interest Income and Non-interest income. Total revenue for the full year 2025 reached $\text{C}\$37.74 \text{ billion}$, a solid increase from $\text{C}\$33.67 \text{ billion}$ the prior year.

Here's a quick look at the main revenue drivers for the full year 2025:

That Net Interest Income (NII) is the difference between what The Bank of Nova Scotia earns on its assets, like loans and mortgages, and what it pays out on its liabilities, like deposits. For the fourth quarter ending October 31, 2025, NII was $\text{C}\$5.59 \text{ billion}$, which was up from $\text{C}\$4.92 \text{ billion}$ in the same quarter last year. The full-year Net Interest Margin expanded to $\text{2.33\%}$ from $\text{2.16\%}$.

Non-interest income is where you see the fee-based services really shine. For the full year 2025, this category was $\text{C}\$16.22 \text{ billion}$, marking a $\text{12\%}$ increase year-over-year. This stream is fed by several key areas, showing where The Bank of Nova Scotia is focusing its growth efforts:

• Wealth management fees (mutual fund and brokerage revenues)
• Investment banking and underwriting fees (Global Banking and Markets)
• Foreign exchange and cross-border transaction fees

You can see the strength in the fee-based segments when you look at the segment results. For instance, in the first quarter of 2025, Global Wealth Management adjusted earnings were $\text{C}\$416 \text{ million}$, up $\text{22\%}$ year-over-year, directly citing growth from higher mutual fund fees and brokerage revenues.

The Global Banking and Markets division was a major revenue generator from fees in 2025. The bank reported a record year in underwriting and advisory fee income, which was up $\text{37\%}$ compared with fiscal 2024. Trading income also saw a lift, increasing $\text{21\%}$ in fiscal 2025. This robust performance meant the Global Banking and Markets segment earnings grew by $\text{50\%}$ year-over-year in the fourth quarter.

When you check the Q4 2025 numbers, non-interest income hit $\text{C}\$4.22 \text{ billion}$. The increase in that quarter was attributed mainly to higher income from associated corporations, like the KeyCorp investment, plus those higher wealth management revenues and underwriting/advisory fees. It definitely shows you that the non-lending side of the business is becoming a more significant part of the overall revenue picture for The Bank of Nova Scotia.

Finance: draft 13-week cash view by Friday.