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Bank of Nova Scotia (NYSE: BNS) details 2026 earnings coverage ratios

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Form Type
6-K

Rhea-AI Filing Summary

Bank of Nova Scotia (BNS) reports strong earnings coverage metrics for the twelve months ended July 31, 2026. Grossed up dividend coverage on outstanding preferred shares and other equity instruments was 19.88x, and interest coverage on subordinated indebtedness was 45.13x. Combined grossed up dividend and interest coverage on preferred shares, other equity instruments and subordinated indebtedness was 14.02x.

Dividend requirements on preferred shares and other equity instruments were $668 million (grossed up using a 24.50% effective income tax rate). Interest requirements on subordinated indebtedness were $301 million, supported by earnings before interest on subordinated indebtedness and income tax of $13,584 million. Consolidated ratios of earnings to fixed charges were 6.14x excluding interest on deposits and 1.39x including interest on deposits.

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Filing Explained

The August 25 report is incorporated into the Bank’s S-8 and F-3 filings, while its coverage ratios are not IFRS-defined or standardized measures.

As a foreign private issuer, The Bank of Nova Scotia furnished this Form 6-K for interim material information; the filing is incorporated by reference into its Form S-8 and Form F-3 registration statements unless later superseded.

The filing states that its coverage ratios are not defined by IFRS, have no standardized meanings under IFRS, and may not be comparable with similar measures reported by other issuers.

Grossed up dividend coverage on preferred shares and other equity instruments 19.88x Twelve months ended July 31, 2026
Interest coverage on subordinated indebtedness 45.13x Twelve months ended July 31, 2026
Grossed up dividend and interest coverage on preferred shares, other equity instruments and subordinated indebtedness 14.02x Twelve months ended July 31, 2026
Dividend requirements on preferred shares and other equity instruments $668 million Twelve months ended July 31, 2026
Interest requirements on subordinated indebtedness $301 million Twelve months ended July 31, 2026
Earnings before interest on subordinated indebtedness and income tax $13,584 million Twelve months ended July 31, 2026, after deducting non-controlling interest
Ratio of earnings to fixed charges (excluding interest on deposits) 6.14x Twelve months ended July 31, 2026
Ratio of earnings to fixed charges (including interest on deposits) 1.39x Twelve months ended July 31, 2026
subordinated indebtedness financial
"Interest coverage on subordinated indebtedness"
Debt that carries lower priority for repayment than other borrowings, meaning holders are paid only after higher‑priority creditors are made whole if the borrower runs into financial trouble; think of it as standing at the back of a queue at a checkout. It matters to investors because it usually carries higher interest to compensate for greater risk, affects how much creditors recover in default, and influences a borrower’s overall credit profile and cost of borrowing.
preferred shares and other equity instruments financial
"Grossed up dividend coverage on outstanding preferred shares and other equity instruments"
earnings coverage financial
"THE BANK OF NOVA SCOTIA EARNINGS COVERAGE"
fixed charges financial
"Consolidated Ratios of Earnings to Fixed Charges"
Fixed charges are regular, contractual payments a company must make regardless of how well its business is doing, such as interest on debt, lease payments, and certain insurance or rental obligations. They matter to investors because these unavoidable payments reduce the cash available for reinvestment, dividends, or absorbing downturns; like a household with a fixed mortgage and car payment, higher fixed charges make a company less flexible and increase financial risk.
International Financial Reporting Standards financial
"prepared in accordance with International Financial Reporting Standards (IFRS)"
International Financial Reporting Standards are a common set of accounting rules used by companies in many countries to prepare and present their financial statements. They matter to investors because they make results easier to compare across borders — like using the same measuring tape — so investors can assess profitability, cash flow and risk more reliably and spot differences that come from business performance rather than differing accounting methods.

FAQ

What earnings coverage ratios did BANK OF NOVA SCOTIA (BNS) report for its preferred shares and other equity instruments?
For the twelve months ended July 31, 2026, Bank of Nova Scotia reported grossed up dividend coverage on outstanding preferred shares and other equity instruments of 19.88x, based on dividend requirements of $668 million and earnings before interest on subordinated indebtedness and income tax of $13,584 million.

What is BANK OF NOVA SCOTIA (BNS) interest coverage on subordinated indebtedness?
For the twelve months ended July 31, 2026, Bank of Nova Scotia’s interest coverage on subordinated indebtedness was 45.13x. This is based on interest requirements on subordinated indebtedness of $301 million and earnings before interest on subordinated indebtedness and income tax of $13,584 million.

What combined coverage does BANK OF NOVA SCOTIA (BNS) show for preferred shares, other equity instruments and subordinated debt?
Bank of Nova Scotia reports grossed up dividend and interest coverage on preferred shares, other equity instruments and subordinated indebtedness of 14.02x for the twelve months ended July 31, 2026, reflecting the relationship between its earnings and total obligations on these instruments.

What are BANK OF NOVA SCOTIA (BNS) ratios of earnings to fixed charges?
For the twelve months ended July 31, 2026, Bank of Nova Scotia’s ratio of earnings to fixed charges was 6.14x excluding interest on deposits and 1.39x including interest on deposits. Fixed charges represent interest and related costs as defined in the disclosure.

How large were BANK OF NOVA SCOTIA (BNS) dividend and interest requirements underlying these coverage ratios?
Over the twelve months ended July 31, 2026, Bank of Nova Scotia’s dividend requirements on preferred shares and other equity instruments were $668 million (grossed up using a 24.50% tax rate). Interest requirements on subordinated indebtedness were $301 million over the same period.

What earnings base did BANK OF NOVA SCOTIA (BNS) use to calculate its coverage ratios?
Bank of Nova Scotia used earnings before interest on subordinated indebtedness and income tax of $13,584 million for the twelve months ended July 31, 2026, after deducting non-controlling interest, to compute its earnings coverage and fixed-charge ratios.

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Form 6-K: How Foreign Companies Report to the SEC →
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

 

Form 6-K

 

 

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16 of

the Securities Exchange Act of 1934

 

For the month of: August, 2026     Commission File Number: 002-09048

 

 

THE BANK OF NOVA SCOTIA

(Name of registrant)

 

 

40 Temperance Street, Toronto, Ontario, M5H 0B4

(Tel.: (416) 866-3672)

(Address of Principal Executive Offices)

 

 

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☐    Form 40-F ☒

This report on Form 6-K shall be deemed to be incorporated by reference in The Bank of Nova Scotia’s registration statements on Form S-8 (File No. 333-199099) and Form F-3 (File No. 333-282565) and to be a part thereof from the date on which this report is filed, to the extent not superseded by documents or reports subsequently filed or furnished.

 

 
 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

    THE BANK OF NOVA SCOTIA
Date: August 25, 2026     By:  

/s/ Gerhardt Samwell

      Name: Gerhardt Samwell
      Title: Senior Vice-President & Chief Accountant

EXHIBIT INDEX

 

Exhibit

   

Description of Exhibit

99.1    2026 Third Quarter Earnings Coverage

Exhibit 99.1

THE BANK OF NOVA SCOTIA

EARNINGS COVERAGE

Earnings Coverage on Subordinated Indebtedness and Preferred Shares and Other Equity Instruments

The consolidated financial ratios for the Bank are set forth in the table below:

 

     Twelve months ended
July 31, 2026(1)		  

Grossed up dividend coverage on outstanding preferred shares and other equity instruments

      19.88  

Interest coverage on subordinated indebtedness

      45.13  

Grossed up dividend and interest coverage on preferred shares, other equity instruments and subordinated indebtedness

      14.02  

The Bank’s dividend requirements on all of its outstanding preferred shares and other equity instruments was $668 million for the 12 months ended July 31, 2026, adjusted to a before-tax equivalent using an effective income tax rate of 24.50% for the 12 months ended July 31, 2026. The Bank’s interest requirements for subordinated indebtedness was $301 million for the 12 months ended July 31, 2026. The Bank’s earnings before interest on subordinated indebtedness and income tax for the 12 months ended July 31, 2026 were $13,584 million after deducting non-controlling interest. In calculating the dividend and interest coverages, foreign currency amounts have been converted to Canadian dollars.

Consolidated Ratios of Earnings to Fixed Charges

The table below sets forth the Bank’s consolidated ratios of earnings to fixed charges:

 

     Twelve months ended
July 31, 2026(1)		  

Excluding interest on deposits

      6.14  

Including interest on deposits

      1.39  

For purposes of computing these ratios:

(a) earnings represent income from continuing operations plus income taxes and fixed charges (excluding capitalized interest and net income from investments in associated corporations);

(b) fixed charges, excluding interest on deposits, represent interest (including capitalized interest), and amortization of debt issuance costs; and

(c) fixed charges, including interest on deposits, represent all interest.

All amounts presented herein are derived from financial information prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). The ratios reported are not defined by IFRS and do not have any standardized meanings under IFRS and thus may not be comparable to similar measures used by other issuers.

 
(1) 

This measure has been disclosed in this document in accordance with section 8.4 of National Instrument 44-102 – Shelf Distributions.

Source: View Original Filing on SEC EDGAR

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