How to invest Scotiabank Stock in Canada [2025]

Key Takeaways

• Bank of Nova Scotia (BNS) is a top Canadian bank with strong Q3 2025 results: net profit rose 32.17% YoY to $2.53B on $9.49B in revenue.

• Stock trades at USD 67.27 with a P/E of 18.08 and a 4.58% dividend yield, appealing to income-focused investors.

• Analyst price targets average $63.15, signaling modest downside, though dividend stability remains attractive.

• Investable via TFSA, RRSP, and brokerage platforms; alternatives include ETFs, options, and similar bank stocks.

• Risks include macroeconomic factors and global interest rate shifts; monitor credit losses and market trends.

Bank of Nova Scotia (BNS.US), commonly known as Scotiabank, is one of Canada’s Big Five banks and a global financial services leader. Founded in 1832 and headquartered in Toronto, Scotiabank earns its revenue primarily through Canadian and international banking, global wealth management, and capital markets operations. Its diverse business model, strong presence in Latin America, and emphasis on digital transformation and client acquisition offer a robust growth outlook in today’s competitive banking landscape.

Source: Moomoo, data as of 25-11-17

Is Bank of Nova Scotia stock overvalued or undervalued?

Evaluating whether Bank of Nova Scotia (BNS) stock is overvalued or undervalued requires careful consideration of various financial metrics, stock price performance, and macroeconomic factors influencing the banking sector. For Canadian investors tracking Bank of Nova Scotia's market potential, understanding its relative valuation today is crucial, especially as the company’s performance has shown recent resilience despite a complex global interest rate environment.

Recent momentum in the Bank of Nova Scotia stock price reflects moderate confidence from analysts and investors alike. While the company operates in the highly regulated and competitive banking space, its diversified operations across Canadian and international markets provide stability and long-term growth drivers. Furthermore, the strength in dividend yield relative to peers often positions BNS as a compelling choice for income-driven portfolios in Canada.

To explore valuation further, let’s examine the firm’s core financial metrics to better gauge where the stock stands on the value spectrum under current market dynamics.

Key financial metrics for Bank of Nova Scotia

Source: moomoo, data as of 25-11-17.

Bank of Nova Scotia price forecast

When forecasting the Bank of Nova Scotia stock price, analysts balance fundamentals like earnings growth, dividend sustainability, and credit performance with broader macroeconomic variables. Currently, nine Wall Street analysts have issued target prices ranging from $57.73 to $67.00, with an average price target of $63.15. This suggests a modest downside potential from the latest closing price, although the stock's stable dividend yield continues to attract long-term investors seeking income stability.

The most recent quarterly performance showed an EPS of $1.84 CAD, beating consensus estimates of $1.73 CAD. The bank delivers consistent revenue growth across core segments—Canadian banking, international operations, and global wealth management—underscoring its well-diversified earnings base despite currency and regional economic fluctuations.

While the stock's PE ratio slightly exceeds the sector median, strong free cash flow generation and capital ratios provide a safety net. The risk-reward outlook will hinge on interest rate adjustments by the Bank of Canada and global central banks, which can impact loan growth and net interest margins. It’s advisable for Canadian investors to track valuation against earnings trends and sector benchmarks before making any entry into BNS stock via platforms like moomoo.

Bank of Nova Scotia earnings 2025Q3 analysis

Source: Bank of Nova Scotia earnings report, data as of 2025-08-26

The Bank of Nova Scotia (BNS) delivered strong results for its fiscal third quarter of 2025, with net profit jumping 32.17% year-over-year to $2.53 billion. Revenue reached $9.49 billion, reflecting a robust 13.41% growth fueled by gains across core business lines. On a per-share basis, earnings came in at $1.84, representing a healthy 30.50% year-over-year increase. If you're tracking the Bank of Nova Scotia earnings date or evaluating catalysts from the latest Bank of Nova Scotia earnings call, these numbers offer a solid performance snapshot.

During the most recent Bank of Nova Scotia earnings call, management emphasized operational momentum, highlighting strong earnings contributions from Canadian Banking ($959 million) and International Banking ($716 million). Global Wealth Management also impressed, contributing $427 million. Think of it like tuning up a multi-engine airplane: each engine has to run smoothly, and in this case, all segments are propelling growth simultaneously. Despite macroeconomic uncertainties and credit loss provisions at $1 billion, the bank maintained a stable CET1 capital ratio of 13.3% and achieved positive operating leverage. This resilience suggests BNS is navigating economic headwinds better than many peers. Investors in Canada watching this large-cap bank stock are sure to find confidence in these operational improvements.

Bank of Nova Scotia stock split analysis

Investors interested in the Bank of Nova Scotia stock split history should be aware that BNS has undergone only one stock split in the past. This split occurred on April 29, 2004, when the bank implemented a 2-for-1 stock split, effectively doubling the number of shares outstanding while halving its share price. Stock splits like this are typically enacted to improve liquidity and make shares more affordable for individual investors. Although the company has not initiated another Bank of Nova Scotia stock split since then, understanding this corporate action is useful when evaluating historical price movements and share performance. The table below outlines the BNS stock split history for reference.

Source: moomoo, data as of 25-11-17.

Bank of Nova Scotia dividends analysis

As one of Canada's "Big Five" financial institutions, the Bank of Nova Scotia (BNS) has long been recognized for its stable earnings and reliable shareholder returns. For investors focused on dividend income, BNS stock remains a flagship choice in both Canadian and international portfolios due to its consistent dividend payouts over nearly two centuries of operations. The bank has shown a strong capital position with a Common Equity Tier 1 (CET1) ratio of 13.3% as of Q3 2025, which supports its ability to maintain and grow distributions even during periods of financial volatility.

In its recent quarterly report, BNS increased its dividend to CAD 1.10 per share in Q2 2025, up from CAD 1.06 in prior quarters, signaling confidence in its forward earnings. With a dividend yield typically above 5% depending on current market price, BNS offers a compelling option for Canadian investors seeking steady income while gaining exposure to both domestic and international banking operations.

Dividend summary of Bank of Nova Scotia

Source: Bank of Nova Scotia financial report announcements, data as of 2025-11-17.

Can I Invest Bank of Nova Scotia stock with a TFSA or RRSP?

Canadian investors looking to invest in Bank of Nova Scotia (BNS.US), which is traded on the NYSE, can absolutely take advantage of registered accounts like the Tax-Free Savings Account (TFSA) or the Registered Retirement Savings Plan (RRSP). When buying U.S.-listed stocks such as BNS through a TFSA, it’s important to note that dividends are subject to a 15% withholding tax per U.S.–Canada tax treaty. However, if you buy stocks with RRSP, U.S. dividend withholding tax does not apply due to the tax-deferral structure of the account. Depending on your investment objectives—whether tax-sheltered growth or long-term retirement accumulation—choosing the right account can maximize the benefits of holding foreign securities like BNS in your Canadian portfolio.

How to invest Bank of Nova Scotia stock in Canada?

If you're living in Canada and want to invest in Bank of Nova Scotia (BNS) stock listed on the U.S. exchange, you’re not alone. Whether you're new to stock investing or a busy professional with limited research time, here’s a simplified, step-by-step guide tailored for Canadian investors.

Step 1: Pick a stock trading platform

Start by choosing an online brokerage that gives you access to U.S. stock markets. Key factors to consider for Canadians include:

• USD account support: To avoid currency conversion fees on each trade.

• Commission structure: Look for low fees or commission-free trading for U.S. stocks.

• Ease of use: A mobile app or web platform with intuitive design can save you time.

• Real-time market data: Especially useful for tracking Bank of Nova Scotia’s performance across segments like Canadian and International Banking or Wealth Management.

Step 2: Choose the right account type and open an account

Below are four account types Canadian residents can use to invest in U.S. stocks like Bank of Nova Scotia:

• TFSA (Tax-Free Savings Account): Allows tax-free growth and withdrawals but U.S. dividends are subject to withholding tax.

• RRSP or SRRSP (Registered Retirement Savings Plan): Contributions are tax-deductible and U.S. dividends are not subject to withholding tax under the Canada-U.S. tax treaty.

• Margin Account: Lets you borrow money to invest, adding risk and potential return. Useful for active traders.

• Cash Account: Basic account where you can only invest funds you’ve deposited, great for beginners.

To open a brokerage account in Canada, you’ll typically need your SIN number, government-issued ID, proof of address, and banking info.

Step 3: Fund your account

Most Canadian brokerages offer funding via Interac e-Transfer, direct bank link, or wire transfer. If you’re planning to use USD, look into foreign exchange tools or services that offer competitive rates for currency conversion.

Step 4: Research Bank of Nova Scotia's fundamentals

Before investing, explore Scotiabank’s key financial metrics. As of Q3 2025, the bank posted revenue of $9.49 billion CAD and net income of $2.35 billion, driven largely by segments like Canadian Banking and International Banking. Analysts maintain a “Buy” rating for BNS stock, and the firm boasts a stable dividend yield of over 4.5%, making it attractive for long-term investors.

Step 5: Set a budget for your Bank of Nova Scotia stock purchase

Decide how much you’re willing to invest based on your overall financial situation and risk tolerance:

• Portfolio allocation: Limit exposure to a single stock based on your diversification goals.

• Emergency fund: Ensure you’ve built a 3–6 months reserve for essentials before investing.

• Fractional shares: If you can't afford to buy a full BNS share trading around USD 67.45, fractional shares let you invest with smaller amounts.

Step 6: Place your Bank of Nova Scotia’s order

Once your account is funded, search for “BNS” under U.S. exchanges. Choose an order type such as “market” for immediate execution or “limit” to set a maximum price. Confirm the order quantity and submit your trade.

Step 7: Monitor and manage your investment

Track your BNS holdings regularly. Evaluate performance through earnings reports, dividend updates, and business unit growth in key markets like Canada, Mexico, and Latin America. Consider dividend reinvestment if your brokerage offers DRIP, and adjust your portfolio as markets or your financial goals evolve.

Alternative ways to invest in Bank of Nova Scotia?

Canadian investors looking for diversified exposure or strategic flexibility beyond owning individual shares of Bank of Nova Scotia (BNS.US) have several alternatives. These options can offer either broader financial sector exposure or unique strategies like income generation and hedging.

Bank of Nova Scotia ETFs

Investing in exchange-traded funds (ETFs) can offer Canadian investors diversification, lower risk, and convenient access to a basket of financial sector stocks including Bank of Nova Scotia. ETFs are traded on exchanges like individual stocks, allowing for intraday liquidity and simple portfolio integration.

• BMO Covered Call Canadian Banks ETF (ZWB): This ETF holds a basket of Canadian bank stocks, including Bank of Nova Scotia, and employs a covered call strategy to enhance income generation through premiums.

• iShares S&P/TSX Capped Financials Index ETF (XFN): Offers broad exposure to the Canadian financial sector. Bank of Nova Scotia is one of the top holdings along with other major banks and insurers.

• Horizons Equal Weight Canadian Banks Index ETF (HEWB): Provides exposure to an equally weighted portfolio of the six largest Canadian banks, aiming to reduce concentration risk while including BNS.

Bank of Nova Scotia options

Canadian investors with access to U.S. markets may consider options trading on Bank of Nova Scotia through the BNS.US ticker. Options trading allows for the use of strategies like calls and puts, which can be used for income enhancement, risk management, or short-term speculation. As of November 14, 2025, implied volatility for BNS options sits at 21.54%, which may influence strategy selection depending on market outlook and risk appetite.

Stocks similar to Bank of Nova Scotia

If you’re looking for stocks with similar profiles to Bank of Nova Scotia, there are several major Canadian financial institutions that operate in comparable markets and offer similar dividend characteristics and business models.

• Royal Bank of Canada (RY.TO): Canada's largest bank by market capitalization with diversified business lines in retail banking, insurance, and capital markets.

• Toronto-Dominion Bank (TD.TO): A major player in North American retail banking with strong operations in both Canada and the U.S.

• Canadian Imperial Bank of Commerce (CM.TO): Known for its retail banking and wealth management services primarily focused in Canada and parts of the U.S.

• National Bank of Canada (NA.TO): Primarily focused on the province of Quebec but expanding nationally with strong capital market services.

Is it a good time to invest Bank of Nova Scotia (BNS) stock?

For Canadian investors evaluating Bank of Nova Scotia (NYSE: BNS), market signals as of mid-November 2025 present a nuanced picture. The stock closed at USD 67.45 on November 14, recording its highest value in nearly a month. Over the past four weeks, BNS has climbed from USD 63.75 (October 17 low) to a recent high of USD 67.83, reflecting steady momentum supported by improving fundamentals.

Bank of Nova Scotia’s Q3 2025 earnings reported CAD 2.53 billion in net profit—a 32% year-over-year increase—on revenue of CAD 9.49 billion, exceeding analyst expectations. Return on equity rose to 12.2%, up from 9.8% last year, indicating enhanced profitability. However, the bank maintains a cautious stance, with a stable provision for credit losses at CAD 1.0 billion.

From a valuation standpoint, BNS is trading at a trailing P/E of 18.08 and a price-to-book ratio of 1.56. Its dividend yield stands at 4.58%, making it appealing for income-oriented investors. Technically, the stock shows robust RSI levels and positive MACD indicators, supporting upward price momentum.

Nevertheless, short-term volatility, global economic headwinds, and ongoing restructuring in international operations remain potential risk factors. Canadian investors should consider both valuation metrics and macro trends before making allocation decisions.

Source: moomoo, data as of 25-11-14.