How Bank of Nova Scotia’s July 2025 Debt Offerings Will Impact Investors (TSX:BNS)

• In July 2025, Bank of Nova Scotia announced and completed several fixed-income offerings, including zero coupon, fixed, and floating rate notes with maturities extending to 2035, raising a combined principal amount exceeding US$45 million.
• This wave of debt issuances with varied terms and structures may reflect the bank’s active approach to managing its capital position and meeting investor demand for its securities in international markets.
• We'll examine how Bank of Nova Scotia's recent debt offerings could influence its capital strategy and future earnings outlook.

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Bank of Nova Scotia Investment Narrative Recap

Shareholders in Bank of Nova Scotia typically believe in the bank’s global diversification and its ability to grow through redeploying capital to higher-potential markets. The bank’s recent fixed-income offerings, while substantial, are unlikely to materially affect the most important short-term catalyst, improvement in core deposit growth, nor do they change the biggest risk: elevated provisions for credit losses due to macroeconomic pressures. Among the latest developments, the completion of US$15 million in zero coupon notes due 2030 stands out for extending the bank’s funding base at a time when earnings have shown some pressure and credit quality concerns remain. Though this move can broaden flexibility, the main catalysts for Bank of Nova Scotia continue to be tied to deposit growth and international expansion, while risks from heightened credit losses linger. However, with rising provisions for credit losses still front of mind, investors should be aware that...

Read the full narrative on Bank of Nova Scotia (it's free!)

Bank of Nova Scotia's outlook anticipates CA$39.7 billion in revenue and CA$10.0 billion in earnings by 2028. This implies an annual revenue growth rate of 11.2% and an earnings increase of CA$3.8 billion from the current CA$6.2 billion.

Uncover how Bank of Nova Scotia's forecasts yield a CA$77.53 fair value, in line with its current price.

Exploring Other Perspectives

Simply Wall St Community users placed Bank of Nova Scotia’s fair value between CA$69.51 and CA$128.83, across 12 unique perspectives. While expectations for strengthening net interest income remain, many participants see room for very different outcomes depending on credit quality and economic trends.

Explore 12 other fair value estimates on Bank of Nova Scotia - why the stock might be worth 9% less than the current price!

Build Your Own Bank of Nova Scotia Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Bank of Nova Scotia research is our analysis highlighting 3 key rewards that could impact your investment decision.
• Our free Bank of Nova Scotia research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Bank of Nova Scotia's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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