Bank of Nova Scotia (NYSE:BNS – Get Free Report) (TSE:BNS) issued its quarterly earnings data on Wednesday. The bank reported $1.47 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.42 by $0.05, Zacks reports. Bank of Nova Scotia had a return on equity of 13.22% and a net margin of 13.38%.The business had revenue of $7.24 billion during the quarter, compared to analyst estimates of $7.13 billion. During the same period in the previous year, the firm earned $1.52 EPS. Bank of Nova Scotia’s quarterly revenue was up 8.3% compared to the same quarter last year.
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 Price Performance
Shares of BNS opened at $79.82 on Friday. The stock has a market capitalization of $98.11 billion, a P/E ratio of 15.23, a P/E/G ratio of 1.02 and a beta of 1.13. Bank of Nova Scotia has a twelve month low of $52.44 and a twelve month high of $82.22. The company has a 50 day moving average of $74.49 and a 200-day moving average of $73.32. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.68.
Hedge Funds Weigh In On Bank of Nova Scotia
Analysts Set New Price Targets
Several equities analysts recently issued reports on BNS shares. Royal Bank Of Canada boosted their price objective on Bank of Nova Scotia from $98.00 to $117.00 and gave the company a “sector perform” rating in a research report on Thursday. TD Securities reiterated a “hold” rating on shares of Bank of Nova Scotia in a research report on Tuesday, March 3rd. Weiss Ratings reiterated a “buy (b)” rating on shares of Bank of Nova Scotia in a research report on Friday, May 22nd. Finally, Canaccord Genuity Group lowered Bank of Nova Scotia from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 9th. Two research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, Bank of Nova Scotia presently has a consensus rating of “Hold” and an average price target of $117.00.
Check Out Our Latest Stock Analysis on BNS
Key Stories Impacting Bank of Nova Scotia
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
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.
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