From Yahoo Finance: 2025-06-14 14:06:00

The Bank of Nova Scotia (BNS) is listed as one of the best Goldman Sachs bank stocks. Fitch Ratings maintained BNS’s long-term and short-term issuer default ratings at ‘AA-‘ and ‘F1+’, with a stable outlook. BNS holds a leading retail banking position in Canada and is executing a five-year growth plan, including exiting operations in Latin America.

Fitch noted that BNS’s significant presence in Mexico poses potential risks from new US tariffs. The bank’s impaired loans rose to 90bps in Q2 2025, mainly due to weaker performance in Canadian retail and commercial lending. Fitch highlighted credit quality challenges for BNS compared to other domestic banks, linked to its international exposure.

BNS’s revenue has improved, but near-term profit pressure persists as the bank realigns operations. To mitigate risks, BNS increased loan-loss provisions and maintains solid capital levels with a CET1 ratio of 13.2%. Fitch does not anticipate a ratings upgrade soon and suggests reducing exposure to emerging markets for a more positive outlook.

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Read more at Yahoo Finance: Fitch Reaffirms The Bank of Nova Scotia (BNS)’s Credit Ratings; Outlook Steady