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RBC Capital Markets raised its price target on Bank of Nova Scotia (BNS.TO, BNS) to C$129 from C$117.Analyst Darko Mihelic maintained a sector-perform rating on shares of the bank following its quarterly results on Tuesday."Q3/26 results were stronger than our expectations particularly in Global Banking and Markets," Mihelic said in a note to clients."We saw signs that BNS could potentially raise its targets."
Financial stocks were edging higher late Tuesday afternoon, with the NYSE Financial Index up 0.2% and the State Street Financial Select Sector SPDR ETF (XLF) adding 0.1%.The Philadelphia Housing Index increased 0.3%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) advanced 0.1%.Bitcoin (BTC-USD) was shedding 0.3% to $78,919, and the yield for 10-year US Treasuries dropped 7.9 basis points to 4.63%.In economic news, US consumer confidence fell in August amid a decline in the expectations index, with a "more pessimistic" outlook for business conditions and the labor market ahead, the Conference Board said Tuesday. The consumer confidence index fell to 89.4 this month from July's reading of 90.2, which was the consensus in a Bloomberg survey.In corporate news, UBS (UBS) is expanding its efforts to offer customers deposits with Middle East lenders to take advantage of higher regional savings rates, Bloomberg reported. UBS shares rose 1.1%.Apollo Global Management (APO), KKR (KKR) and IFM Investors are the finalists for a majority stake in Associated British Ports, the UK's largest port operator, Bloomberg reported. Apollo shares rose 0.3%, and KKR was up 0.2%.Alphabet's (GOOGL) Google Cloud said Tuesday it has launched a new agentic AI service for financial professionals, with Deutsche Bank (DB) and CME (CME) among those firms granted early access. Deutsche shares rose 1.6%, and CME was down 0.7%.Bank of Nova Scotia (BNS) shares jumped past 7% after it reported better-than-expected Q3 results.
Financial stocks were mixed in Tuesday afternoon trading, with the NYSE Financial Index up 0.1% and the State Street Financial Select Sector SPDR ETF (XLF) fractionally lower.The Philadelphia Housing Index was decreasing 0.3%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) advanced 0.2%.Bitcoin (BTC-USD) was up 0.3% at $78,980, and the yield for 10-year US Treasuries dropped 6.1 basis points to 4.643%.In economic news, US consumer confidence fell in August amid a decline in the expectations index, with a "more pessimistic" outlook for business conditions and the labor market ahead, the Conference Board said Tuesday. The consumer confidence index fell to 89.4 this month from July's reading of 90.2, which was the consensus in a Bloomberg survey.In corporate news, Apollo Global Management (APO), KKR (KKR) and IFM Investors are the finalists for a majority stake in Associated British Ports, the UK's largest port operator, Bloomberg reported. Apollo shares eased 0.1%, and KKR was up 0.2%.Alphabet's (GOOGL) Google Cloud said Tuesday it has launched a new agentic AI service for financial professionals, with Deutsche Bank (DB) and CME (CME) among those firms granted early access. Deutsche shares rose 1%, and CME was down 0.6%.Bank of Nova Scotia (BNS) shares jumped past 6% after the company reported better-than-expected Q3 results.JPMorgan Chase (JPM) is easing a 135-day restriction on lending against shares of newly listed companies as Wall Street targets wealth created by IPO of AI companies, the Financial Times reported. Separately, JPMorgan and Santander (SAN) are leading a financing package of roughly $14 billion to $15 billion for Argentina LNG, Bloomberg reported. JPMorgan shares were down 0.2%, and Santander shed 0.8%.
TD Cowen Upgrades Bank of Nova Scotia to Buy From Hold, CA$141 Price Target
The Nasdaq Composite and S&P 500 Index were up, while the Dow Jones Industrial Average was roughly flat in late-morning trading, as longer-dated Treasury bond yields were down slightly and investors looked ahead to Nvidia's (NVDA) earnings results on Wednesday.Canada will impose counter tariffs of 15%, 25% or 50% on about $20 billion of imports from the US, effective Sept. 8, in response to President Donald Trumps recent announcement of 50% tariffs on roughly $20 billion of Canadian goods, Canadian Finance Minister Francois-Philippe Champagne said Tuesday at a press conference.In company news, Dick's Sporting Goods (DKS) reported fiscal Q2 non-GAAP earnings Tuesday of $3.53 per diluted share, down from $4.38 a year ago and below the FactSet consensus analyst estimate of $3.76. Fiscal Q2 net sales were $5.59 billion, up from $3.65 billion a year ago but below the FactSet consensus of $5.64 billion. For fiscal 2026, the company expects non-GAAP EPS of $11 to $12, down from its prior guidance of $13.50 to $14.50 and below the FactSet consensus of $14.28. Full-year net sales are expected to be between $21.9 billion and $22.2 billion, down from Dick's previous guidance of $22.1 billion to $22.4 billion and below the FactSet consensus of $22.33 billion. Shares of Dick's were down 27.6% around midday.SpaceX (SPCX) plans to launch its first artificial intelligence satellites run by Nvidia chips in Q4 2027, with the network expected to reach significant scale in 2028, Chief Executive Elon Musk said Monday on X. SpaceX shares were up 3.3%.Alphabet's (GOOG, GOOGL) Google Cloud said Tuesday it has launched a new agentic AI service for financial professionals, with Deutsche Bank (DB) and CME Group (CME) among those firms granted early access. Gemini Enterprise for Financial Services includes the Financial Research agent, skills to create shortcuts for repetitive tasks, integrations to FactSet (FDS) and Moody's (MCO), a third-party agent ecosystem and the Gemini Enterprise platform, the company said. Separately, Alphabet's Waymo said Tuesday it plans to establish a fully autonomous ride-hailing network in Munich. Alphabet's Class C and Class A shares were both down 0.5%, while Deutsche Bank and CME Group shares were up 1.0% and down 0.4%, respectively.Bank of Montreal (BMO) reported fiscal Q3 adjusted EPS Tuesday of 3.96 Canadian dollars ($2.86), up from CA$3.23 a year earlier and above the FactSet consensus of CA$3.77. Fiscal Q3 revenue was CA$9.9 billion, up from CA$8.99 billion a year ago and above the FactSet consensus of CA$9.73 billion. The bank said it plans to repurchase for cancellation up to 25 million of its common shares under a normal course issuer bid. The buyback program is expected to start around Sept. 8 and run until Sept. 7, 2027, the company said. Bank of Montrea shares were down 0.3%.Bank of Nova Scotia (BNS) reported fiscal Q3 adjusted EPS Tuesday of CA$2.28, up from CA$1.88 a year earlier and above the FactSet consensus of CA$2.10. Fiscal Q3 revenue was CA$10.54 billion, up from CA$9.49 billion a year ago and above the FactSet consensus of CA$9.98 billion. Scotiabank shares were up 4.9%.Price: $211.22, Change: $+2.74, Percent Change: +1.31%
Financial stocks were rising pre-bell Tuesday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.2%.The Direxion Daily Financial Bull 3X Shares (FAS) was 0.7% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.3%.Bank of Nova Scotia (BNS) stock was up more than 1% after the company reported higher fiscal Q3 adjusted earnings and revenue.Bank of Montreal (BMO) posted higher fiscal Q3 adjusted earnings and revenue, and announced plans to buy back up to 25 million of its common shares for cancellation. Shares of Bank of Montreal were 0.6% lower premarket.Royal Bank of Canada (RY) said it has formally established Global Transaction Banking as a single global business to expand its banking services across markets. Royal Bank of Canada stock was up 0.3% pre-bell.
The broad market exchange-traded fund SPDR S&P 500 ETF Trust (SPY) was up 0.5%, and the actively traded Invesco QQQ Trust (QQQ) was 1% higher in Tuesday's premarket activity as chip stocks recovered from Monday's losses.US stock futures were also higher, with S&P 500 Index futures up 0.5%, Dow Jones Industrial Average futures advancing 0.5%, and Nasdaq futures gaining 1% before the start of regular trading.In premarket activity, bitcoin was up by 0.4%. Among cryptocurrency ETFs, the cryptocurrency fund ProShares Bitcoin Strategy ETF (BITO) was 0.5% higher, Ether ETF (EETH) advanced 0.2%, and Bitcoin & Ether Market Cap Weight ETF (BETH) increased 2.4%.The Philadelphia Federal Reserve Bank's monthly nonmanufacturing activity index fell to negative 10.6 in August from 7.4 in the previous month, compared with a smaller decrease to 3.6 expected in a Bloomberg survey, indicating contraction in the sector.The Case-Shiller National Home Price index rose by 0.4% in June before seasonal adjustment following a 0.7% increase in May.The FHFA's measure of home prices held steady in June after an unrevised 0.3% increase in the previous month, below the 0.2% gain expected in a survey compiled by Bloomberg.Reports slated for a 10 am ET release include the consumer confidence report and Richmond Fed business conditions data for August, and new-home sales for July.Power Play:ConsumerThe State Street Consumer Staples Select Sector SPDR ETF (XLP) was 0.1% lower, the Vanguard Consumer Staples Index Fund ETF Shares (VDC) was up 0.1%, and the iShares US Consumer Staples ETF (IYK) was flat. The State Street Consumer Discretionary Select Sector SPDR ETF (XLY) gained 0.2%. The VanEck Retail ETF (RTH) was down 0.4%, while the State Street SPDR S&P Retail ETF (XRT) was flat.Dick's Sporting Goods (DKS) shares were down more than 17% pre-bell after the company reported lower fiscal Q2 non-GAAP earnings and cut its fiscal 2026 guidance.Winners and Losers:FinancialThe State Street Financial Select Sector SPDR ETF (XLF) advanced 0.3%. Direxion Daily Financial Bull 3X Shares (FAS) was up 0.8%, while its bearish counterpart, Direxion Daily Financial Bear 3X Shares (FAZ), was 0.7% lower.Bank of Nova Scotia (BNS) shares were up 2% in premarket activity after the company reported higher fiscal Q3 adjusted earnings and revenue.Health CareThe State Street Health Care Select Sector SPDR ETF (XLV) retreated 0.1%, the Vanguard Health Care Index Fund (VHT) was up 1%, while the iShares US Healthcare ETF (IYH) advanced 0.5%. The iShares Biotechnology ETF (IBB) was 0.2% higher.Moderna (MRNA) stock was up more than 1% premarket after Wolfe upgraded it to peer perform from underperform.IndustrialThe State Street Industrial Select Sector SPDR ETF (XLI) advanced 0.5%, while the Vanguard Industrials Index Fund (VIS) and the iShares US Industrials ETF (IYJ) were inactive.SpaceX (SPCX) stock was up more than 1% before the opening bell after Elon Musk said in an X post on Monday that the company plans to launch its first AI satellites run by Nvidia (NVDA) chips in Q4 2027, with the network expected to reach significant scale in 2028.TechnologyThe State Street Technology Select Sector SPDR ETF (XLK) advanced 1.1%, the iShares US Technology ETF (IYW) was 1.3% higher, and the iShares Expanded Tech Sector ETF (IGM) was up 0.6%. Among semiconductor ETFs, the State Street SPDR S&P Semiconductor ETF (XSD) increased 2.9% while the iShares Semiconductor ETF (SOXX) rose by 2.4%.Nvidia (NVDA) shares were up more than 1% in premarket activity after Raymond James lifted its price target for the company to $352 from $330.EnergyThe iShares US Energy ETF (IYE) retreated 0.02%, while the State Street Energy Select Sector SPDR ETF (XLE) was down by 1%.Equinor (EQNR) stock was down more than 1% before market open, following a 1.1% loss in the previous session. The company's Executive Vice President Philippe Mathieu said Equinor plans to boost production outside Norway to 950,000 barrels of oil equivalent per day by 2030, while generating $20 billion of free cash flow from 2026 to 2030.CommoditiesFront-month US West Texas Intermediate crude oil retreated by 3.5% to $82.02 per barrel on the New York Mercantile Exchange. Natural gas was down 1.7% at $2.74 per 1 million British Thermal Units. The United States Oil Fund (USO) decreased 2.9%, while the United States Natural Gas Fund (UNG) was 1.4% lower.Gold futures for November were down by 0.1% at $4,692.70 an ounce on the Comex. Silver futures retreated 0.9% to $68.77 an ounce. SPDR Gold Shares (GLD) decreased 0.4%, and the iShares Silver Trust (SLV) was 1.3% lower.
Financial stocks were rising pre-bell Tuesday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.2%.The Direxion Daily Financial Bull 3X Shares (FAS) was 0.7% higher and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was down 0.3%.Bank of Nova Scotia (BNS) stock was up more than 1% after the company reported higher fiscal Q3 adjusted earnings and revenue.
The Bank of Nova Scotia (BNS.TO, BNS) reported Q3 adjusted diluted earnings of C$2.28 per share, up from C$1.88 a year earlier and above the C$2.10 consensus estimate compiled by FactSet.Adjusted net income rose 18% year over year to C$2.97 billion.Revenue for the three months ended July 31 increased to C$10.54 billion from C$9.49 billion. The consensus on FactSet was for C$9.98 billion.The bank also declared a dividend of C$1.14 per common share, unchanged from the previous quarter.Shares closed down C$0.28 at C$120.29 in Toronto on Monday but were up 1% in US premarket trading Tuesday.
Canadian bank shares are over-valuing future growth and potential upside, said Jefferies.Except for Scotiabank (BNS.TO) and EQB (EQB.TO), all Canadian Banks are trading at an NTM P/E valuation above their respective historical peaks since 2005, Jeffries director of research John Aiken wrote.Bank ROEs currently average 14.6%, compared with their historical average of 15.4%. Aiken found that near-to-medium ROE is currently the strongest driver of relative valuations, rather than EPS growth.Consensus estimates are forecasting two-year EPS CAGR of 10%-15%, which is twice as high as the historical average. Even if EPS growth materializes as expected, current valuation suggest that share prices would need to fall over the next 12 months to return to historical levels, he added.According to Aiken, "Assuming that consensus growth estimates materialize and that the second 12-month EPS estimates are unchanged, Canadian Banks share price would fall 10%-30% to return to historical valuation."Price: $247.52, Change: $-5.72, Percent Change: -2.26%
Financial stocks were advancing in late Friday afternoon trading, with the NYSE Financial Index rising 0.3% and the State Street Financial Select Sector SPDR ETF (XLF) ahead 0.8%.The Philadelphia Housing Index added 0.9%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) shed 0.7%.Bitcoin (BTC-USD) was decreasing 0.2% to $73,361, and the yield for 10-year US Treasuries decreased 1 basis point to 4.445%.In economic news, the Institute for Supply Management's Chicago PMI reading jumped to 62.7 in May from 49.2 in April, larger than the expected 50.3 reading in a survey compiled by Bloomberg and the highest reading in over four years.In corporate news, Blackstone (BX) is selling the US Bank Center in Seattle to office landlord Spear Street Capital for about $280 million, 54% less than what it paid for the building seven years ago, Bloomberg reported. Blackstone shares were up 0.8%.Apollo Global Management (APO) has received the European Commission's approval for its funds under Apollo Capital Management to buy Nippon Sheet Glass, according to a statement. Separately, Apollo-backed Shutterfly is marketing about $1.9 billion in loans and bonds, including $1.15 billion in junk notes, to refinance upcoming maturities, Bloomberg reported. Apollo shares rose 1.4%.UBS (UBS) cut several hundred jobs across its Europe, Middle East and Africa operations in its latest round of reductions linked to the 2023 Credit Suisse takeover, Bloomberg reported. The cuts mainly affected support roles, with some client-facing bankers also impacted, the report said, adding that some employees were offered internal redeployment as UBS works to limit redundancies. UBS shares added 0.8%.Bank of Nova Scotia (BNS) said Friday it has agreed to acquire Maple Financial, the parent company of MapleMark Bank, a US commercial bank with operations mainly in Dallas, Texas. Bank of Nova Scotia shares were up 0.1%.
Financial stocks were advancing in Friday afternoon trading, with the NYSE Financial Index rising 0.4% and the State Street Financial Select Sector SPDR ETF (XLF) ahead 0.9%.The Philadelphia Housing Index was climbing 1.1%, and the State Street Real Estate Select Sector SPDR ETF (XLRE) shed 0.8%.Bitcoin (BTC-USD) was increasing 0.7% to $74,012, and the yield for 10-year US Treasuries was decreasing one basis points to 4.45%.In economic news, the Institute for Supply Management's Chicago PMI reading jumped to 62.7 in May from 49.2 in April, larger than the expected 50.3 reading in a survey compiled by Bloomberg and the highest reading in over four years.In corporate news, Apollo Global Management (APO) has received the European Commission's approval for its funds under Apollo Capital Management to buy Nippon Sheet Glass, according to a statement. Separately, Apollo-backed Shutterfly is marketing about $1.9 billion in loans and bonds, including $1.15 billion in junk notes, to refinance upcoming maturities, Bloomberg reported. Apollo shares rose 2.5%.UBS (UBS) cut several hundred jobs across its Europe, Middle East and Africa operations in its latest round of reductions linked to the 2023 Credit Suisse takeover, Bloomberg reported. The cuts mainly affected support roles, with some client-facing bankers also impacted, the report said, adding that some employees were offered internal redeployment as UBS works to limit redundancies. UBS shares added 0.7%.Bank of Nova Scotia (BNS) said Friday it has agreed to acquire Maple Financial, the parent company of MapleMark Bank, a US commercial bank with operations mainly in Dallas, Texas. Bank of Nova Scotia shares were down 0.6%.
Bank of Nova Scotia's (BNS) fiscal Q2 results were broadly in line with expectations and showed sequential net interest margin improvement in Canadian banking, RBC Capital Markets said Thursday in a report.RBC said Canadian banking delivered the strongest performance relative to its estimates.Credit quality in Canada showed modest improvement, and the bank now expects impaired loan losses to settle in the mid-50-basis-point range for the remainder of 2026, slightly elevated versus its initial outlook while still easing from H1, the report said.While Bank of Nova Scotia's valuation appears relatively attractive, its return-on-equity outlook remains below that of other Canadian banks in RBC's coverage, the report said.RBC raised its fiscal 2026 core EPS estimate to 8.35 Canadian dollars ($6.05) from CA$8.09 and increased its fiscal 2027 estimate to CA$9.29 from CA$9.02. It lifted its price target on Bank of Nova Scotia's stock to CA$117 from CA$98 and maintained its sector-perform rating.Price: $79.71, Change: $-0.97, Percent Change: -1.20%
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target price by CAD5 to CAD79, 8.7x our FY 27 (Oct.) EPS view, a discount to the peer average of 14.7x given inconsistent execution. We raise our FY 26 EPS view to CAD8.41 from CAD8.21 and increase FY 27's to CAD9.12 from CAD9.06. Our revenue projections are CAD39.8 billion for 2026 and CAD41.7 billion for 2027. Despite optimistic comments from management regarding balance sheet growth, we continue to be disappointed. In the Apr-Q, loans were flat year-over-year, and we don't believe the recent uptick in commercial balances will be sufficient to bring BNS's growth rate in line with its peers. Deposits are equally concerning, declining 1% year-over-year. Furthermore, despite management's confidence in earnings growth, the bank raised its quarterly dividend by only 3.6% to CAD1.14, a modest increase. On a positive note, BNS has improved its efficiency metrics alongside other Canadian banks, with meaningful gains in both ROE and productivity ratio in recent quarters.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We increase our 12-month target price by USD3 to USD57, 8.7x our FY 27 (Oct.) EPS view of CAD9.12 (USD6.60), a discount to the peer average of 14.7x given inconsistent execution. We raise our FY 26 EPS view to CAD8.41 from CAD8.21 and increase FY 27's to CAD9.12 from CAD9.06. Our revenue projections are CAD39.8 billion for 2026 and CAD41.7 billion for 2027. Despite optimistic comments from management regarding balance sheet growth, we continue to be disappointed. In the Apr-Q, loans were flat year-over-year, and we don't believe the recent uptick in commercial balances will be sufficient to bring BNS's growth rate in line with its peers. Deposits are equally concerning, declining 1% year-over-year. Furthermore, despite management's confidence in its earnings growth, the bank raised its quarterly dividend by only 3.6% to CAD1.14, a modest increase. On a positive note, BNS has improved its efficiency metrics alongside other Canadian banks, with meaningful gains in both ROE and productivity ratio in recent quarters.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:BNS reported a solid Apr-Q earnings beat with operating EPS of CAD2.02 vs CAD1.52 the prior year and CAD0.08 above consensus, while adjusted ROE improved 270 bps to 13.2%, the highest since early 2023. Revenue of CAD9.84B rose 8% due to continued net interest margin expansion to 2.49% (+18 bps) and 13% growth in non-interest income to CAD4.32B. The bank demonstrated effective expense management with the productivity ratio improving significantly to 52.5% from 55.7%, capturing the full benefit of revenue growth while controlling costs at CAD5.19B. However, credit challenges persist as gross impaired loans reached a cyclical high of 0.99% from 0.90%, marking the 14th consecutive quarter of deterioration due to Canadian Banking and International corporate portfolios. The Business segment's performance was broad-based with Canadian Banking leading at CAD935M (+53%), International Banking generating CAD736M (+3%), and strong contributions from Global Wealth Management and Global Banking and Markets.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:BNS reported a solid Apr-Q earnings beat with operating EPS of CAD2.02 vs CAD1.52 the prior year and CAD0.08 above consensus, while adjusted ROE improved 270 bps to 13.2%, the highest since early 2023. Revenue of CAD9.84B rose 8% due to continued net interest margin expansion to 2.49% (+18 bps) and 13% growth in non-interest income to CAD4.32B. The bank demonstrated effective expense management with the productivity ratio improving significantly to 52.5% from 55.7%, capturing the full benefit of revenue growth while controlling costs at CAD5.19B. However, credit challenges persist as gross impaired loans reached a cyclical high of 0.99% from 0.90%, marking the 14th consecutive quarter of deterioration due to Canadian Banking and International corporate portfolios. The Business segment's performance was broad-based with Canadian Banking leading at CAD935M (+53%), International Banking generating CAD736M (+3%), and strong contributions from Global Wealth Management and Global Banking and Markets.
(Adds share price move in second paragraph and includes updates on the performance of different banking units from paragraph eleven)The Bank of Nova Scotia (BNS.TO, BNS) has turned negative in New York premarket trading Wednesday although it kicked off the second-quarter earnings season for Canada's big banks by posting an earnings beat, supported by growth across all of its business lines, with credit losses edging lower and management saying the bank "remains on track to achieve its financial objectives for fiscal 2026", prompting it to increase the dividend.Shares in BNS were last seen down near 0.7% in US premarket trade, having been slightly higher immediately after the release of its result. But the stock did strike 52 week highs on the NYSE yesterday.On a reported basis, the bank posted net income of $2,632 million in Q2, up 29.5% on an annual basis from $2,032 million a year earlier. Diluted earnings per share were $2.00, compared with $1.48 in the prior-year period.On an adjusted basis, net income rose 28% year over year to $2,652 million, from $2,072 million a year ago. Adjusted diluted earnings per share climbed to $2.02, from $1.52 last year, surpassing $1.93 estimates compiled by FactSet.Revenue for the three months ended April 30 increased 8.1% to $9,837 million, from $9,098 million, exceeding the C$9,696.5 million consensus estimate from FactSet.Adjusted return on equity was 13.2% compared to 10.4% a year ago. The bank reported a Common Equity Tier 1 (CET1) capital ratio of 13.3%.Among other highlights, the provision for credit losses was $1,217 million compared to $1,398 million, a decrease of $181 million. The provision for credit losses ratio decreased by nine basis point to 66 basis points. The provision for credit losses on performing loans was $88 million compared to $346 million, a decrease of $258 million.The bank said, the "provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio".The bank also declared a dividend of $1.14 per share, an increase of $0.04 per share on the outstanding common shares This dividend is payable on July 29, 2026, to shareholders of record at the close of business on July 7, 2026."The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage," said Scott Thomson, CEO of Scotiabank."The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective in fiscal 2027. Our focus on evolving our business mix drove strong fee income and wealth management revenues, along with sequential Canadian commercial and small business loan growth," he added.Among units, Canadian Banking delivered earnings of $935 million, up 53% year-over-year, primarily driven by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses. "The business grew day-to-day and savings deposits and delivered another quarter of solid positive operating leverage, in line with its strategic objectives," Scotiabank said.International Banking generated earnings of $701 million, up 4% year-over-year on the back of lower non-interest expenses, lower income taxes and the positive impact of foreign currency translation, the bank said, adding it was "was partly offset by lower net interest income, lower non-interest income and higher provision for credit losses".Global Wealth Management segment delivered adjusted earnings of $474 million, up 19% year-over-year driven by higher mutual fund fees, brokerage revenues and net interest income across the Canadian wealth business. This was partly offset by higher volume-related non-interest expenses, the lender noted.Shares closed up C$0.02 up at C$111.00 in Toronto on Tuesday.
The Bank of Nova Scotia (BNS.TO, BNS) was last seen up 0.01% in New York premarket trading Wednesday after kicking off the first-quarter earnings season for Canada's big banks by posting an earnings beat, supported by growth across all of its business lines, with credit losses edging lower and management saying the bank "remains on track to achieve its financial objectives for fiscal 2026", prompting it to increase the dividend.On a reported basis, the bank posted net income of $2,632 million in Q2, up 29.5% on an annual basis from $2,032 million a year earlier. Diluted earnings per share were $2.00, compared with $1.48 in the prior-year period.On an adjusted basis, net income rose 28% year over year to $2,652 million, from $2,072 million a year ago. Adjusted diluted earnings per share climbed to $2.02, from $1.52 last year, surpassing $1.93 estimates compiled by FactSet.Revenue for the three months ended April 30 increased 8.1% to $9,837 million, from $9,098 million, exceeding the C$9,696.5 million consensus estimate from FactSet.Adjusted return on equity was 13.2% compared to 10.4% a year ago.Among other highlights, the provision for credit losses was $1,217 million compared to $1,398 million, a decrease of $181 million. The provision for credit losses ratio decreased by nine basis point to 66 basis points. The provision for credit losses on performing loans was $88 million compared to $346 million, a decrease of $258 million.The bank said, the "provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio".The bank also declared a dividend of $1.14 per share, an increase of $0.04 per share on the outstanding common shares This dividend is payable on July 29, 2026, to shareholders of record at the close of business on July 7, 2026."The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage," said Scott Thomson, CEO of Scotiabank."The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective in fiscal 2027. Our focus on evolving our business mix drove strong fee income and wealth management revenues, along with sequential Canadian commercial and small business loan growth," he added.Shares closed up C$0.02 up at C$111.0 in Toronto on Tuesday.
Financial stocks were higher pre-bell Friday, with the State Street Financial Select Sector SPDR ETF (XLF) advancing by 0.3%.The Direxion Daily Financial Bull 3X Shares (FAS) gained by 1%, and its bearish counterpart Direxion Daily Financial Bear 3X Shares (FAZ) was 1% lower.Ally Financial (ALLY) shares rose 3.1% premarket after the company reported higher Q1 adjusted earnings and revenue.Scotiabank (BNS) said it expects its stake in KeyCorp to contribute 77 million Canadian dollars ($56.4 million) in net income in Q2. Shares of Scotiabank were up 0.7% higher pre-bell.Fifth Third Bancorp (FITB) shares rose more than 1% before the opening bell after the company posted a surprise Q1 profit on Friday.
