Canada's Scotiabank beat Q2 profit estimates on higher fee income, raises dividend

Bank of Nova Scotia

27/05/2026 10:40

Overview
Canada banking group's fiscal Q2 adjusted net income and EPS beat analyst expectations
Revenue for the quarter rose yr/yr, driven by strong fee income and wealth management
Bank raised quarterly dividend by 4%

Outlook
Scotiabank says it remains on track to achieve fiscal 2026 financial objectives
Company maintains 14%+ ROE target for fiscal 2027
Scotiabank cites strong revenue growth and expanding margins in current market conditions

Result Drivers
CANADIAN BANKING - Higher revenues and lower provision for credit losses drove 53% yr/yr earnings growth, partly offset by higher expenses
WEALTH MANAGEMENT - Higher mutual fund fees, brokerage revenues and net interest income boosted earnings 19% yr/yr
CREDIT LOSSES - Overall provision for credit losses fell yr/yr, mainly due to a lower provision on performing loans, though impaired loan provisions increased

Company press release: ID:nCNWLymjqa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
 
C$9.84 bln
 
Q2 Adjusted EPS
Beat
C$2.02
C$1.94 (13 Analysts)
Q2 EPS
 
C$2
 
Q2 Adjusted Net Income
Beat
C$2.65 bln
C$2.38 bln (10 Analysts)
Q2 Net Income
 
C$2.63 bln
 
Q2 Net Interest Income
 
C$5.52 bln
 
Q2 Adjusted ROE
 
13.20%
 
Q2 CET1 Capital Ratio
 
13.30%
 
Q2 Provision for credit losses
 
C$1.22 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 10 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the banks peer group is "buy."
Wall Street's median 12-month price target for Bank of Nova Scotia is C$108.50, about 2.3% below its May 26 closing price of C$111.00
The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)