Bank of Nova Scotia (NYSE:BNS) exceeded expectations in its third-quarter results on Tuesday, reporting a 15% year-on-year increase in adjusted earnings per share, fueled by revenue growth and positive operating leverage.
Following the announcement, the bank’s shares rose 0.92% in pre-market trading.
The Canadian financial institution posted adjusted earnings of C$1.88 per share, surpassing analyst estimates of C$1.73. Revenue reached C$9.49 billion, ahead of the consensus forecast of C$9.3 billion and up 13.4% compared to the same period last year.
“I want to thank all Scotiabankers for delivering a very strong quarter as we continue to execute on our strategy,” said Scott Thomson, President and CEO of Scotiabank. “We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year.”
The bank’s adjusted return on equity rose to 12.4% from 11.3% a year ago. Global Wealth Management saw adjusted earnings climb 13% to C$427 million, driven by higher mutual fund fees, brokerage income, and net interest revenue. Global Banking and Markets reported a 29% jump in earnings to C$473 million, supported by strong capital markets activity and increased fee revenue.
International Banking posted adjusted earnings of C$716 million, up 7% year-on-year, benefiting from solid revenue generation and disciplined expense management. Meanwhile, Canadian Banking’s adjusted earnings slightly declined by 2% to C$959 million.
The bank maintained a robust capital position, with a Common Equity Tier 1 (CET1) ratio of 13.3%, up roughly 10 basis points from the previous quarter.
Bank of Nova Scotia stock price
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