Bank of Nova Scotia (NYSE:BNS) Announces Earnings Results, Beats Expectations By $0.05 EPS

Bank of Nova Scotia (NYSE:BNS) (TSE:BNS) issued its quarterly earnings data on Wednesday. The bank reported $1.47 earnings per share (EPS) for the quarter, topping the consensus estimate 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 net margin of 13.38% and a return on equity of 13.22%. Bank of Nova Scotia’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period last year, the firm 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 Down 1.1%

BNS opened at $79.82 on Friday. The company has a debt-to-equity ratio of 0.68, a quick ratio of 1.05 and a current ratio of 1.05. The company has a market cap of $98.11 billion, a price-to-earnings ratio of 15.23, a PEG ratio of 1.02 and a beta of 1.13. Bank of Nova Scotia has a one year low of $52.44 and a one year high of $82.22. The business’s fifty day moving average is $74.49 and its two-hundred day moving average is $73.32.

Analysts Set New Price Targets

A number of brokerages have recently commented on BNS. Royal Bank Of Canada upped their target price on shares of Bank of Nova Scotia from $98.00 to $117.00 and gave the company a “sector perform” rating in a report on Thursday. Canaccord Genuity Group cut Bank of Nova Scotia from a “strong-buy” rating to a “hold” rating in a research report on Monday, March 9th. Weiss Ratings reaffirmed a “buy (b)” rating on shares of Bank of Nova Scotia in a research note on Friday, May 22nd. Finally, TD Securities reiterated a “hold” rating on shares of Bank of Nova Scotia in a research note on Tuesday, March 3rd. Two investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, Bank of Nova Scotia currently has an average rating of “Hold” and an average target price of $117.00.

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

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the company. Compound Planning Inc. grew its position in shares of Bank of Nova Scotia by 31.6% in the fourth quarter. Compound Planning Inc. now owns 17,740 shares of the bank’s stock valued at $1,307,000 after purchasing an additional 4,264 shares during the last quarter. Strive Financial Group LLC acquired a new position in shares of Bank of Nova Scotia during the 4th quarter worth approximately $102,000. Mercer Global Advisors Inc. ADV raised its position in shares of Bank of Nova Scotia by 3.6% during the 4th quarter. Mercer Global Advisors Inc. ADV now owns 9,611 shares of the bank’s stock worth $708,000 after purchasing an additional 334 shares during the last quarter. Vident Advisory LLC lifted its stake in Bank of Nova Scotia by 28.7% in the 4th quarter. Vident Advisory LLC now owns 15,734 shares of the bank’s stock valued at $1,160,000 after buying an additional 3,510 shares in the last quarter. Finally, XTX Topco Ltd lifted its stake in Bank of Nova Scotia by 28.9% in the 4th quarter. XTX Topco Ltd now owns 37,662 shares of the bank’s stock valued at $2,775,000 after buying an additional 8,439 shares in the last quarter. Institutional investors and hedge funds own 49.13% of the company’s stock.

About Bank of Nova Scotia

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.