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Operating Segments

12 Months Ended

Oct. 31, 2025

28	Operating Segments

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

tax-exempt

income earned on certain securities reported in either net interest income or

non-interest

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.

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.

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:


For the year ended October 31, 2025
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.

(

)

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.


For the year ended October 31, 2024
Taxable equivalent basis ($ millions)	Canadian Banking (1)		International Banking (1)		Global Wealth Management (1)		Global Banking and 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.

(

)

Interest income is reported net of interest expense as management relies primarily on net interest income as a performance measure.

(

)

(

)

Includes net income (on a taxable equivalent basis) from investments in associated corporations for Canadian Banking – $(9); International Banking – $130; and Other – $77.

(

)

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.