Bank of Nova Scotia (NYSE:BNS) Issues Quarterly Earnings Results

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) released its quarterly earnings data on Wednesday. The bank reported $1.47 EPS for the quarter, topping analysts’ consensus estimates of $1.42 by $0.05, Zacks reports. The company had revenue of $7.24 billion for the quarter, compared to the consensus estimate of $7.13 billion. Bank of Nova Scotia had a return on equity of 13.22% and a net margin of 13.38%.The company’s quarterly revenue was up 8.3% compared to the same quarter last year. During the same period last year, the business posted $1.52 EPS.

Here are the key takeaways from Bank of Nova Scotia’s conference call:

• Scotiabank delivered adjusted earnings of CAD 2.7 billion and CET1 of 13.3%, while also increasing its quarterly dividend and repurchasing 6.4 million shares, signaling strong capital generation and shareholder returns.
• Canadian Banking showed improving momentum, with pre-tax pre-provision earnings up 13% year over year, a fourth straight quarter of margin expansion, and continued gains in deposits, fee income, and commercial loan growth.
• Global Wealth Management had a standout quarter, with net sales of CAD 4.7 billion, its seventh consecutive quarter of positive net flows, and ROE of 17.9%, helped by stronger referrals from the bank’s other businesses.
• International Banking and Global Banking and Markets both posted solid revenue growth, with strong performance in Mexico and a 25% increase in capital markets revenues, while deposit and loan mix continued to improve across the footprint.
• Credit costs remain elevated: the bank now expects impaired PCLs to settle in the mid-50 bps range for the rest of 2026, driven by macro uncertainty, trade pressures, and a large corporate file in International Banking, though management said the non-retail issue looks episodic rather than systemic.

Bank of Nova Scotia Stock Performance

Bank of Nova Scotia stock opened at $79.82 on Friday. Bank of Nova Scotia has a 52 week low of $52.44 and a 52 week high of $82.22. The company has a current ratio of 1.05, a quick ratio of 1.05 and a debt-to-equity ratio of 0.68. The stock has a market cap of $98.11 billion, a P/E ratio of 15.23, a price-to-earnings-growth ratio of 1.02 and a beta of 1.13. The stock has a 50 day moving average of $74.49 and a 200-day moving average of $73.32.

Key Bank of Nova Scotia News

Here are the key news stories impacting Bank of Nova Scotia this week:

• Positive Sentiment: BNS beat Q2 expectations, reporting EPS of $2.02 versus $1.42 expected, with revenue of $7.24 billion also ahead of estimates. The bank said profit rose on stronger interest income and broad-based growth in Canadian banking and wealth management. Reuters article
• Positive Sentiment: The bank raised its dividend after the quarter, signaling confidence in earnings durability and capital strength. WSJ article
• Positive Sentiment: Royal Bank of Canada lifted its price target on Bank of Nova Scotia to $117 from $98, reflecting stronger earnings expectations and still implying meaningful upside. Benzinga reference
• Positive Sentiment: Q2 details were constructive: ROE improved to 13.1%, non-interest income grew strongly in wealth management and capital markets, provisions fell, and CET1 capital remained healthy at 13.3%. Seeking Alpha article
• Neutral Sentiment: Analysts noted the stock is trading at elevated multiples and technical levels, which could limit near-term upside even after the earnings beat. Seeking Alpha article
• Neutral Sentiment: Management flagged a concentration-risk issue after a single-client impaired loan increase, which is worth watching but does not yet appear to outweigh the stronger quarterly fundamentals. Seeking Alpha article

Wall Street Analysts Forecast Growth

BNS has been the topic of a number of analyst reports. Weiss Ratings reiterated a “buy (b)” rating on shares of Bank of Nova Scotia in a research note on Friday, May 22nd. TD Securities reaffirmed a “hold” rating on shares of Bank of Nova Scotia in a report on Tuesday, March 3rd. Royal Bank Of Canada lifted their price target on shares of Bank of Nova Scotia from $98.00 to $117.00 and gave the stock a “sector perform” rating in a research note on Thursday. Finally, Canaccord Genuity Group lowered shares of Bank of Nova Scotia from a “strong-buy” rating to a “hold” rating in a report on Monday, March 9th. Two analysts have rated the stock with a Buy rating and three have issued a Hold rating to the stock. According to MarketBeat, Bank of Nova Scotia presently has an average rating of “Hold” and an average target price of $117.00.

Institutional Inflows and Outflows

A number of large investors have recently added to or reduced their stakes in BNS. Sivia Capital Partners LLC acquired a new stake in Bank of Nova Scotia during the second quarter valued at approximately $330,000. Smartleaf Asset Management LLC grew its position in shares of Bank of Nova Scotia by 134.0% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,832 shares of the bank’s stock worth $136,000 after acquiring an additional 1,049 shares in the last quarter. Fiduciary Group LLC acquired a new position in shares of Bank of Nova Scotia in the 4th quarter worth approximately $210,000. Colonial Trust Co SC bought a new stake in shares of Bank of Nova Scotia in the 4th quarter valued at approximately $147,000. Finally, PharVision Advisers LLC bought a new stake in shares of Bank of Nova Scotia in the 3rd quarter valued at approximately $210,000. 49.13% of the stock is currently owned by institutional investors.

Bank of Nova Scotia Company Profile

Bank of Nova Scotia, commonly known as Scotiabank, is a Canadian multinational banking and financial services company founded in 1832 and headquartered in Toronto, Ontario. It is one of Canada’s largest banks and provides a broad range of financial services to retail, commercial, corporate and institutional clients. The bank combines a domestic Canadian franchise with an extensive international presence to serve customers across multiple markets.

Scotiabank’s core activities include personal and commercial banking, wealth management, corporate and investment banking, capital markets, and global transaction banking.