Bank of Nova Scotia (NYSE:BNS) reported second-quarter adjusted earnings on Wednesday that exceeded analyst forecasts, supported by solid revenue growth and lower credit-loss provisions.
The Canadian lender posted adjusted earnings per share of Cdn$2.02, ahead of market expectations of Cdn$1.93.
Scotiabank shares rose 0.62% in premarket trading following the earnings release.
Quarterly revenue increased to Cdn$9.84 billion, topping analyst consensus estimates of Cdn$9.65 billion and marking an 8% rise from Cdn$9.08 billion in the same period last year.
Adjusted net income climbed to Cdn$2.65 billion compared with Cdn$2.07 billion a year earlier, driven by stronger revenues and an improvement in credit performance.
The bank’s provision for credit losses declined to Cdn$1.22 billion from Cdn$1.40 billion in the prior-year quarter, reflecting stronger credit quality across its lending portfolios. Adjusted return on equity improved to 13.2%, up from 10.4% in the same quarter last year.
“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, President and CEO of Scotiabank. “The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective in fiscal 2027.”
Scotiabank’s Canadian Banking division generated earnings of Cdn$935 million, representing a 53% increase year-over-year, supported by double-digit growth in pre-tax, pre-provision income and lower credit losses.
International Banking posted earnings of Cdn$736 million, up 3% from the prior year, with continued expansion in profit margins.
Global Wealth Management recorded earnings of Cdn$476 million, an increase of 19% year-over-year, helped by stronger mutual fund fees and brokerage revenues.
The bank also announced a quarterly dividend of Cdn$1.14 per share, reflecting a 4% increase. Its Common Equity Tier 1 capital ratio remained unchanged at 13.3% compared with the previous quarter.