Bank of Nova Scotia Sees Commercial Growth as Digital, Fee Strategy Gains Traction

Bank of Nova Scotia (Scotiabank) is witnessing commercial banking momentum, with a strong deal pipeline, 10% year-over-year growth in small-business lending, and five consecutive quarters of declining commercial credit-loss provisions. The bank is expanding in defense, energy, oil and gas, and regional markets across Canada. Revenue diversification is improving returns, with fee revenue rising more than 20% over the past two quarters and net interest margin expanding for five consecutive quarters.

Digital and relationship-banking initiatives are gaining traction, with 40% of third-quarter sales coming from digital channels. Scotiabank is also deploying AI to improve underwriting and productivity, leading to nearly 70% time savings in mortgage verification. Group Head of Canadian Banking Aris Bogdaneris stated that the bank's commercial clients are resilient despite tariff and trade-policy uncertainty.

The bank has committed CAD 100 billion to Canadian industry and is active in oil and gas, defense, and Western Canada. Small-business lending is growing 10% year-over-year, and commercial provisions for credit losses have declined for five consecutive quarters. The bank expects opportunities related to defense, energy, and oil and gas to support commercial banking growth.