$BNS.TO

Scotiabank Plans to Fully Buy Scotia Group Jamaica Ltd. For C$500 Million

Scotiabank (BNS.TO, BNS) on Friday said it plans to buy out the minority shareholders of Scotia Group Jamaica Limited (SGJL) for $500 million.The proposed deal is part of the company's strategy to "optimize capital and operational efficiency across its existing footprint," it said. SGJL, based on the unanimous recommendation of a committee of independent directors of the board of directors of SGJL, entered into a definitive arrangement agreement with its majority shareholder, Scotiabank Caribbean Holding Limited (SCHL), whereby all of the issued and outstanding shares of SGJL that SCHL does not currently own will be bought back, subject to approval of SGJL's minority shareholders.The total cash consideration being offered to minority shareholders is about C$0.5 billion and the CET1 ratio impact at closing is estimated to be about 5-basis points. The proposed transaction will be undertaken by way of a court-approved Scheme of Arrangement under the Companies Act 2004 in Jamaica, it said.If the proposed deal is approved at the meeting, to be held by SGJL in the coming months, by the minority shareholders, it is expected to close by year end, subject to certain conditions, it said. The SGJL shares are expected to be de-listed from the Jamaica Stock Exchange, following completion of the proposed deal.Shares of the company were last seen up $1.66 to $116.93 on the Toronto Stock Exchange.Price: $116.94, Change: $+1.67, Percent Change: +1.45%

TSX Closer: The Index Closes Higher For The First Time Since Monday's Record Close

The Toronto Stock Exchange closed higher on Thursday, its first winning session since Monday's record close, with the resource-heavy index buoyed by improved commodity prices, a continuing belief among investors that equity market fundamentals are strong, bullish comments from Canada Prime Minister Mark Carney in New York and cautious positivity on the economy from the Bank of Canada.The S&P/TSX Composite Index closeds up 105.65, or 0.3%, to 34,517.70, having lost more than 400 points over the prior two days. Sectors were mixed, with Info Tech up near 2.6% and Base Metals up 2.3%, helped by a higher gold price. In contrast the Battery Metals Index was down 1.15%, Energy eased near 0.5% despite a modest rise in the oil price, and Financial lost 0.8% even as The Canadian Press reported the 'Big Six' banks see reasons for optimism while navigating a 'period of volatility'.Sluggish trade negotiations between Canada and the United States are finally showing faint signs of life as a milestone looms for renewal of their three-way trade deal with Mexico, CBC News reported on Thursday. The minister responsible for Canada-U.S. trade, Dominic LeBlanc, is planning to travel to Washington, D.C., for trade talks, although his spokespeople haven't confirmed a date, the report noted. Although the Canada-U.S.-Mexico Agreement (CUSMA) is due for its first-ever joint review on July 1, LeBlanc has held just one day of in-person talks over the past seven months with his Trump administration counterpart, U.S. Trade Representative Jamieson Greer, he also noted.That report came out as Prime Minister Mark Carney prepared to pitch Canada as an investment hub at New York's Economic Club at lunchtime today.Employing U.S. President Donald Trump's marquee slogan, PM Carney told a New York City business crowd "Canada strong will help make America great again", reported CTV News. It noted the P.M. detailed his economic diversification strategy, and his plans to recalibrate Canada's relationships and reputation. "We're focused on what we can control, and that means weaving a dense web of international partnerships abroad. That's making us a much stronger, more resilient, more independent country," Carney told the business crowd.Meanwhile, the Bank of Canada on Thursday said Canada's financial system has functioned well through a challenging year as households and businesses remain in stable financial condition, and banks have strengthened their capacity to absorb shocks.However, vulnerabilities have increased in some parts of the system, noted the central bank in its annual Financial Stability Report (FSR). Stock and corporate debt valuations have risen and are high relative to historical norms, the central bank said, adding this makes markets more vulnerable to a sharp correction.The Canadian Press is reporting that Canada's major banks say they're cautiously optimistic as their latest earnings beat expectations, with executives confident they're well equipped to handle potential risks in the Canadian economy. The Big Six grew their profits in the second quarter compared with the same three-month period a year ago, while also posting results above analysts' forecasts, the report noted. Five of those; Toronto-Dominion Bank (TD.TO), Royal Bank of Canada (RY.TO), Bank of Nova Scotia (BNS.TO), Bank of Montreal (BMO.TO) and National Bank of Canada (NA.TO) each hiked their quarterly dividend, it also noted.And while executives expressed confidence in their ability to withstand economic challenges ahead, they also acknowledged macroeconomic concerns that could shift their outlooks, according to the report. Those include the U.S.-Iran war that continues to drag on, pushing international oil prices and inflation higher. High unemployment in Canada and ongoing uncertainty over trade with the United States also cloud the outlook, they said.Of commodities, West Texas Intermediate crude oil closed with a small gain, but fell off early highs following reports the U.S. and Iran agreed to extend their ceasefire even as they earlier traded strikes. WTI crude oil for July delivery closed up US$0.22 to settle at $US$88.90 per barrel after earlier touching US$92.52. July Brent oil was down US$0.64 to US$93.65.Gold was higher midafternoon Thursday, rising off its early lows as the dollar and yields fell after reports the United States and Iran have agreed to extend a ceasefire for 60 days, lowering oil prices and easing inflation worries even a key U.S. inflation measure rose in April. Gold for July delivery was up US$52.50 to US$4,4,534.00 per ounce, after earlier touching US$4,395.60.

Bank of Nova Scotia Price Target Raised to $117 at RBC

RBC Capital Markets raised its price target on Bank of Nova Scotia (BNS.TO) to $117 from $98 on Thursday.Analyst Darko Mihelic maintained a Sector Perform rating on shares of the Canadian bank following its quarterly results."We view Q2/26 results as relatively in line with consensus but above our expectations excluding the 'noise,'" Mihelic said in a note to clients."Canadian Banking results were the most positive versus our estimates and included sequential NIM improvement (asset spread pickup from loan growth & higher-priced term deposit run off)," the analyst said."BNS expects PCLs to moderate from H1/26 levels more gradually than previously anticipated, and guided to an impaired PCL ratio in the mid-50s for the remainder of 2026, slightly elevated versus its initial outlook."(covers equity, commodity and economic research from major banks and research firms in North America, Asia and Europe. Research providers may contact us here: https://www..com/contact-us)

TSX Closer: The Index Falls for a Second Day After Monday's Record Close Amid Rise In Canadian Credit Stress

The Toronto Stock Exchange closed lower on Wednesday, falling for a second session following Monday's record close, on more profit taking and weak commodity prices, while one analyst said Bank of Nova Scotia's (BNS.TO) credit outlook "becomes more cautious" after it reported fiscal second-quarter earnings and a pair of economists noted credit stress is "rising, not breaking" in Canada.The resources-heavy S&P/TSX Composite Index closed down 241.82 points, or 0.7%, to 34,412.05, adding to the near 170 points lost Tuesday. Most sectors were lower, led by Energy, down 2.35% on lower oil. Base Metals eased about 0.2%, not helped by a drop in the gold price. Among gainers, both Industrials and Telecom rose by about 0.7%, respectively.The Financial sector lost near 0.3% on a day when the trio of Scotiabank, Bank of Montreal (BMO.TO) and National Bank (NA.TO) each reported their respective fiscal Q2 results. Canadian Imperial Bank of Commerce (CM.TO), Royal Bank of Canada (RY.TO) and Toronto-Dominion Bank (TD.TO) will each report theirs Thursday.On Scotiabank, National Bank noted it reported Q2 core cash EPS of $2.02 versus a National Bank estimate of $1.87 and consensus of $1.93. Among key takeaways, National Bank said although Scotiabank beat its, and consensus, expectations, it has a "mixed view" of the quarter. On the positive side, National Bank said the Canadian P&C business delivered its best quarter in a long time, an important "deliverable" vis-a-vis Scotiabank's double-digit EPS growth target for the year. But on the negative side, National Bank said Capital Markets results missed consensus expectations and the bank's guidance range. More importantly, it added, credit losses were higher than expected, which resulted in the adoption of more conservative second half credit performance guidance. National Bank has kept a sector-perform rating and C$106 target on Scotiabank's shares.Still on credit stress in Canada, the National Bank Economics and Strategy Group noted total debt in insolvency reached its highest level since the 2009 financial crisis in the first quarter, according to data from Equifax. Economists Daren King and Matthieu Arseneau said this increase may seem alarming and raises concerns about the financial health of Canadian households. But, they asked, is the situation really as concerning as it seems?To gain a clearer picture, the National Bank duo analyzed data from the Office of the Superintendent of Bankruptcy, which tracks the total number of insolvency filings (bankruptcies and consumer proposals) across the country. They noted this data also shows that the number of insolvencies reached its highest level since the financial crisis in the first quarter. However, King and Arseneau said, two adjustments are necessary to correctly interpret the trend in insolvencies. The first concerns seasonality, since the first half of the year is historically associated with a higher volume of insolvencies. The second involves accounting for the strong population growth observed since 2009, as the Canadian population has increased by approximately 25% over this period.According to the pair, once the data is seasonally adjusted and expressed on a per capita basis, the insolvency rate remains well below the peak reached in the wake of the financial crisis and is even below its pre-pandemic level of 2019. They said the upward trend observed since 2022 therefore reflects a normalization from an exceptionally low pandemic trough rather than a widespread breakdown in household credit. This does not mean, however, that the situation should be downplayed, they added."The rise in the insolvency rate over the past year reflects a more fragile labour market, high interest rates, and a still-high cost of living, particularly for housing, food, and energy, which continue to put pressure on many households. However, the data does not support the narrative of systemic credit risk suggested by some media headlines. The most accurate interpretation remains more nuanced: financial strains are increasing, but their magnitude remains moderate by historical standards for now," King and Arseneau said.Of commodities, West Texas Intermediate crude oil plunged 5.6% on expectations the United States and Iran are nearing a deal to reopen the Strait of Hormuz and end the largest-ever energy supply shock. WTI crude oil for July delivery closed down US$5.21 to settle at US$88.68 per barrel, the lowest since April 20, while July Brent oil was down US$5.30 to US$94.28.Also, gold fell to a two-month low, even as the dollar dipped and oil prices weakened ahead of an expected peace deal to end the war on Iran, easing inflation worries. Gold for July delivery was down US$52.60 to US$4,482.40 per ounce, the lowest since March 26.

Also On the Negative Side, Scotia's Credit Losses Were Higher Than Expected, Resulting In Adoption of More Conservative Second Half Credit Performance Guidance, adds National Bk

Also On the Negative Side, Scotia's Credit Losses Were Higher Than Expected, Resulting In Adoption of More Conservative Second Half Credit Performance Guidance, adds National Bk

On the Negative Side, Scotia's Capital Markets Results Missed Consensus Expectations and the Bank's Guidance Range, says National Bk

On the Negative Side, Scotia's Capital Markets Results Missed Consensus Expectations and the Bank's Guidance Range, says National Bk

On the Positive Side, Scotiabank's Canadian P&C Business Delivered Its Best Quarter In a Long Time, notes National Bank

On the Positive Side, Scotiabank's Canadian P&C Business Delivered Its Best Quarter In a Long Time, notes National Bank

Scotiabank Keeps a Sector Perform and C$106 Target at National Bank Which Notes Scotia's "Credit Outlook Becomes More Cautious" After Today's Q2

Scotiabank Keeps a Sector Perform and C$106 Target at National Bank Which Notes Scotia's "Credit Outlook Becomes More Cautious" After Today's Q2

National Bank In Q2 First Look At Scotiabank Notes Impaired PCL Ratio Above High End of Guidance Range, Due Mainly To Higher Losses In International

National Bank In Q2 First Look At Scotiabank Notes Investment Gains Offset Higher Credit Losses; National Bk Has Sector Perform, Target $106 on BNS

Bank of Nova Scotia "Absence of Balance Sheet Growth Remains an Issue," TD Says

TD Securities maintained a Hold rating and $112 price target on Bank of Nova Scotia after it reported Q2 results before market open on Wednesday.TD analyst Mario Mendonca said the impact is positive for BNS."Came away feeling slightly better about near-term earnings momentum, but absence of balance sheet growth remains an issue," Mendonca said in a note to clients."BNS beat EPS estimates in CAD Banking (NIM and operating leverage) and International (NIM)," the analyst said. "Capital markets were slightly softer than expected, although still up 11% y/y.""Capital generation was good and the bank continues to buy back stock," Mendonca said. "Growth remains a challenge for the bank, particularly in International commercial. Pivot to growth expected later in '26."

Update: Scotiabank Turns Negative Premarket Despite Q2 Earnings Beat; Highlights Include Dividend Hike; Lower Credit Losses

(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.

Scotiabank Edges Higher Premarket After Q2 Earnings Beat; Highlights Include Dividend Hike; Lower Credit Losses

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.

Correction: -- Bank of Nova Scotia Q2 Return on Equity of 13.2%, Compared to 10.4% Is On An Adjusted Basis

Bank of Nova Scotia Q2 EPS Diluted of $2.02, compared to $1.52 Is On An Adjusted Basis

Earnings Flash (BNS.TO) Scotiabank Posts Q2 Adjusted EPS C$2.02 per Share, vs. FactSet Est of C$1.93

Earnings Flash (BNS.TO) Scotiabank) Reports Q2 Revenue C$9.84B, vs. FactSet Est of C$9.70B

Bank of Nova Scotia Provision For Credit Losses $1,217M Compared to $1,398M, a decrease of $181M

Bank of Nova Scotia Increases Dividend On Outstanding Common Shares; $1.14 per share, an increase of $0.04 per share

Bank of Nova Scotia Q2 Return on Equity of 13.2%, Compared to 10.4%