- BNS
- BNS
Key Points
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Record Q3 performance: Scotiabank reported C$3 billion in net income and diluted EPS of C$2.28, up 21% year over year. Adjusted return on equity reached 14.2%, surpassing its medium-term target ahead of schedule.
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Broad-based business growth: Revenue increased 16%, while Canadian Banking, Global Wealth Management and Global Banking and Markets posted strong earnings growth. Canadian Banking’s return on equity rose to 19.4%, and wealth-management net sales reached a record C$3 billion for the third quarter.
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Improving credit trends and continued shareholder returns: Provisions for credit losses declined to C$1.1 billion, or 56 basis points, as retail and international credit performance improved. The bank maintained a 13.1% CET1 ratio, repurchased 8.6 million shares and returned C$8.3 billion to shareholders over the past year.
Bank of Nova Scotia (NYSE:BNS) reported record third-quarter results for fiscal 2026, with management citing broad-based earnings strength, improving returns in Canadian Banking and continued growth in wealth management and capital markets.
The bank posted quarterly net income of C$3 billion and diluted earnings per share of C$2.28, up 21% from a year earlier. Adjusted return on equity reached 14.2%, exceeding the bank’s medium-term target of more than 14% earlier than management had anticipated.
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“Q3 was a record quarter for the bank,” President and Chief Executive Officer Scott Thomson said, adding that the result reflected favorable markets as well as strategic repositioning, improved capital allocation and gains in business mix.
Revenue growth and capital deployment
Revenue increased 16% year over year, supported by 12% growth in net interest income and a 21% increase in non-interest income. The bank said higher banking and wealth-management revenue, underwriting and advisory fees, commissions and income from associated corporations contributed to the gains.
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Net interest margin rose 18 basis points from a year earlier, although it was unchanged sequentially. Margin gains in Canadian Banking and Global Banking and Markets were offset by lower margins in International Banking, where the prior quarter included seasonal benefits.
Expenses rose 14%, reflecting higher performance-based and share-based compensation, as well as greater technology spending. Technology investment increased 16% to C$1.5 billion during the quarter. Still, the bank delivered positive operating leverage for the 10th consecutive quarter, with its productivity ratio improving 90 basis points year over year to 52.5%.
