The Bank’s businesses are grouped into four business lines: Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets. The Bank’s other smaller business segments and corporate adjustments are included in the Other segment. The accounting policies used in these segments are generally consistent with those followed in the preparation of the consolidated financial statements as disclosed in Note 3.
The Bank analyzes revenue on a taxable equivalent basis (TEB) for business lines. This methodology grosses up
income earned on certain securities reported in either net interest income or
income to an equivalent before tax basis. It also grosses up net income from associated corporations to normalize the effective tax rate in the business lines. Corresponding increases are made to the income tax expense; hence, there is no impact on the segment’s net income. The elimination of the TEB
gross-up
is recorded in the Other segment; hence, there is no impact on the consolidated results.
Effective January 1, 2024, in line with the provisions of Bill C-59, the Bank no longer claims the dividend received deduction on Canadian shares that are mark-to-market property, which resulted in a lower TEB gross-up.
Changes in business line allocation methodology
Effective the first quarter of 2025, the Bank made voluntary changes to its allocation methodology impacting business segment presentation. The new methodology includes updates related to the Bank’s funds transfer pricing, head office expense allocations, and allocations between business segments. Prior period results for each segment have been revised to conform with the current period’s methodology. Further details on the changes are as follows:
| 1. | Funds transfer pricing methodology was updated, primarily related to the allocation of substantially all liquidity costs to the business lines, reflecting the Bank’s strategic objective to maintain higher liquidity ratios. |
| 2. | Periodically, the Bank updates its allocation methodologies. This includes a comprehensive update to the allocation of head office expenses across countries within International Banking, updates to the allocation of clients and associated revenue, expenses, and balances between International Banking, Global Banking and Markets, and Global Wealth Management to align with the strategy, as well as updates to the allocation of head office expenses and income taxes from the Other segment to the business segments. |
| 3. | To be consistent with the reporting of Scotiabank’s recent minority investment in KeyCorp, the Bank has also made changes to the reporting of certain minority investments in International Banking (Bank of Xi’an) and Global Wealth Management (Bank of Beijing Scotia Asset Management) which are now reported in the Other segment. |
Scotiabank’s results, and average assets and liabilities, allocated by these operating segments, are as follows:
| Taxable equivalent basis ($ millions) | Canadian Banking | International Banking | Global Wealth Management | Global Banking and Markets | Other(1) | Total |
|---|
| Net interest income(2) | $10,484 | $8,866 | $1,025 | $1,400 | $(253) | $21,522 |
|---|
| Non-interest income(3)(4) | 2,941 | 3,177 | 5,403 | 4,766 | (68) | 16,219 |
|---|
| Total revenues | 13,425 | 12,043 | 6,428 | 6,166 | (321) | 37,741 |
|---|
| Provision for credit losses | 2,293 | 2,309 | 14 | 97 | 1 | 4,714 |
|---|
| Depreciation and amortization | 552 | 483 | 189 | 259 | 121 | 1,604 |
|---|
| Other non-interest expenses | 5,853 | 5,681 | 3,955 | 3,304 | 2,121 | 20,914 |
|---|
| Income tax expense | 1,302 | 781 | 590 | 585 | (507) | 2,751 |
|---|
| Net income | $3,425 | $2,789 | $1,680 | $1,921 | $(2,057) | $7,758 |
|---|
| Net income attributable to non-controlling interests in subsidiaries | – | 158 | 10 | (1) | (198) | (31) |
|---|
| Net income attributable to equity holders of the Bank | $3,425 | $2,631 | $1,670 | $1,922 | $(1,859) | $7,789 |
|---|
| Average assets ($ billions) | 463 | 227 | 38 | 509 | 228 | 1,465 |
|---|
| Average liabilities ($ billions) | 382 | 175 | 48 | 520 | 254 | 1,379 |
|---|
| (1) | Includes all other smaller operating segments and corporate adjustments. |
| (2) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
| (3) | Card revenues and Banking services fees are mainly earned in Canadian and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
| (4) | Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $19; International Banking – $152; Global Banking and Markets – $1; and Other – $436. |
|
| Taxable equivalent basis ($ millions) | CanadianBanking(1) | InternationalBanking(1) | Global WealthManagement(1) | Global Bankingand Markets(1) | Other(1)(2) | Total |
|---|
| Net interest income(3) | $10,185 | $8,867 | $786 | $1,102 | $(1,688) | $19,252 |
|---|
| Non-interest income(4)(5) | 2,848 | 2,999 | 4,803 | 3,959 | (191) | 14,418 |
|---|
| Total revenues | 13,033 | 11,866 | 5,589 | 5,061 | (1,879) | 33,670 |
|---|
| Provision for credit losses | 1,691 | 2,285 | 27 | 47 | 1 | 4,051 |
|---|
| Depreciation and amortization(6) | 568 | 568 | 187 | 258 | 179 | 1,760 |
|---|
| Other non-interest expenses | 5,557 | 5,602 | 3,468 | 2,864 | 444 | 17,935 |
|---|
| Income tax expense | 1,440 | 705 | 479 | 414 | (1,006) | 2,032 |
|---|
| Net income | $3,777 | $2,706 | $1,428 | $1,478 | $(1,497) | $7,892 |
|---|
| Net income attributable to non-controlling interests in subsidiaries | – | 125 | 10 | – | (1) | 134 |
|---|
| Net income attributable to equity holders of the Bank | $3,777 | $2,581 | $1,418 | $1,478 | $(1,496) | $7,758 |
|---|
| Average assets ($ billions) | 449 | 231 | 35 | 495 | 209 | 1,419 |
|---|
| Average liabilities ($ billions) | 389 | 179 | 41 | 475 | 254 | 1,338 |
|---|
| (1) | Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period’s methodology. |
| (2) | Includes all other smaller operating segments and corporate adjustments, such as the elimination of the tax-exempt income gross-up reported in net interest income and non-interest income and provision for income taxes for the year ended October 31, 2024 amounting to $55 to arrive at the amounts reported in the Consolidated Statement of Income, differences in the actual amount of costs incurred and charged to the operating segments. |
| (3) | Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure. |
| (4) | Card revenues and Banking services fees are mainly earned in Canadian and International Banking. Mutual fund, Brokerage fees and Investment management and trust fees are primarily earned in Global Wealth Management. Underwriting and other advisory fees are predominantly earned in Global Banking and Markets. |
| (5) | Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $(9); International Banking – $130; and Other – $77. |
| (6) | Includes impairment charge on software and other intangible assets in the Other segment. |
Geographical segmentation
The following table summarizes the Bank’s financial results by geographic region.
| For the year ended October 31, 2025 ($ millions) | Canada | United States | Mexico | Peru | Chile | Colombia | Caribbean and Central America | Other International | Total |
|---|
| Net interest income | $11,378 | $799 | $2,405 | $1,334 | $1,993 | $717 | $1,931 | $965 | $21,522 |
|---|
| Non-interest income(1) | 9,352 | 2,165 | 1,014 | 588 | 571 | 479 | 1,295 | 755 | 16,219 |
|---|
| Total revenues(2) | 20,730 | 2,964 | 3,419 | 1,922 | 2,564 | 1,196 | 3,226 | 1,720 | 37,741 |
|---|
| Provision for credit losses | 2,338 | 67 | 552 | 368 | 748 | 378 | 196 | 67 | 4,714 |
|---|
| Non-interest expenses | 13,660 | 1,591 | 1,822 | 885 | 1,168 | 750 | 1,508 | 1,134 | 22,518 |
|---|
| Income tax expense | 1,532 | 189 | 264 | 126 | 79 | 38 | 450 | 73 | 2,751 |
|---|
| Net income | 3,200 | 1,117 | 781 | 543 | 569 | 30 | 1,072 | 446 | 7,758 |
|---|
| Net income attributable to non-controlling interests in subsidiaries | (200) | – | 23 | 7 | 7 | 9 | 123 | – | (31) |
|---|
| Net income attributable to equity holders of the Bank | $3,400 | $1,117 | $758 | $536 | $562 | $21 | $949 | $446 | $7,789 |
|---|
| Total average assets ($ billions) | $899 | $237 | $60 | $29 | $55 | $14 | $38 | $133 | $1,465 |
|---|
| Total average liabilities ($billions) | $889 | $187 | $55 | $22 | $50 | $14 | $35 | $127 | $1,379 |
|---|
| (1) | Includes net income from investments in associated corporations for Canada – $(12), United States – $362, Mexico – $9, Peru – $4, Chile – $7, Caribbean and Central America – $132, and Other International – $106. |
| (2) | Revenues are attributed to countries based on where services are performed or assets are recorded. |
|
| For the year ended October 31, 2024(1) ($ millions) | Canada | United States | Mexico | Peru | Chile | Colombia | Caribbean and Central America | Other International | Total |
|---|
| Net interest income | $9,207 | $664 | $2,397 | $1,422 | $2,020 | $690 | $1,842 | $1,010 | $19,252 |
|---|
| Non-interest income(2) | 8,535 | 1,578 | 1,032 | 546 | 455 | 486 | 1,180 | 606 | 14,418 |
|---|
| Total revenues(3) | 17,742 | 2,242 | 3,429 | 1,968 | 2,475 | 1,176 | 3,022 | 1,616 | 33,670 |
|---|
| Provision for credit losses | 1,701 | 28 | 380 | 501 | 626 | 561 | 150 | 104 | 4,051 |
|---|
| Non-interest expenses | 11,207 | 1,309 | 1,867 | 869 | 1,143 | 794 | 1,454 | 1,052 | 19,695 |
|---|
| Income tax expense | 1,002 | 146 | 280 | 140 | 119 | (49) | 303 | 91 | 2,032 |
|---|
| Net income | 3,832 | 759 | 902 | 458 | 587 | (130) | 1,115 | 369 | 7,892 |
|---|
| Net income attributable to non-controlling interests in subsidiaries | – | – | 24 | 3 | 42 | (50) | 115 | – | 134 |
|---|
| Net income attributable to equity holders of the Bank | $3,832 | $759 | $878 | $455 | $545 | $(80) | $1,000 | $369 | $7,758 |
|---|
| Total average assets ($ billions) | $874 | $218 | $64 | $27 | $56 | $14 | $35 | $131 | $1,419 |
|---|
| Total average liabilities ($billions) | $854 | $189 | $59 | $21 | $53 | $14 | $32 | $116 | $1,338 |
|---|
| (1) | Effective Q1 2025, changes were made to the methodology used to allocate certain income, expenses and balance sheet items between business segments. Prior period results for each segment have been reclassified to conform with the current period’s methodology. |
| (2) | Includes net income from investments in associated corporations for Canada – $(68), Mexico – $11, Peru – $4, Chile – $6, Caribbean and Central America – $109, and Other International – $136. |
| (3) | Revenues are attributed to countries based on where services are performed or assets are recorded. |
