RegulatoryMay 27, 2026, 07:32 AM
Bank of Nova Scotia: Subordinated Debt Interest Coverage 39.97x
AI Summary
The Bank of Nova Scotia reported its earnings coverage ratios for the twelve months ended April 30, 2026, in accordance with regulatory requirements. The interest coverage on subordinated indebtedness was a robust 39.97 times, while the grossed-up dividend coverage on preferred shares and other equity instruments stood at 18.85 times. The combined grossed-up dividend and interest coverage was 13.03 times, indicating strong financial health. Additionally, the bank's consolidated ratios of earnings to fixed charges were 6.22 (excluding interest on deposits) and 1.37 (including interest on deposits).
Key Highlights
- Interest coverage on subordinated indebtedness was 39.97 times for the 12 months ended April 30, 2026.
- Grossed up dividend coverage on preferred shares and other equity instruments was 18.85 times.
- Combined grossed up dividend and interest coverage on preferred shares and subordinated indebtedness was 13.03 times.
- The ratio of earnings to fixed charges, excluding interest on deposits, was 6.22 times.
- The ratio of earnings to fixed charges, including interest on deposits, was 1.37 times.
- Dividend requirements for preferred shares and other equity instruments totaled $674 million.
- Interest requirements for subordinated indebtedness amounted to $326 million.
- Earnings before interest on subordinated indebtedness and income tax were $13,030 million.
Price Impact
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