Bank of Nova Scotia (BNS) had a good Wednesday. The Canadian lender reported second-quarter fiscal 2026 results that beat analyst expectations, and it rewarded shareholders with a dividend increase.
In U.S. dollar terms, adjusted earnings came in at $1.47 per share, just ahead of the $1.46 consensus estimate. Revenue hit $7.17 billion, comfortably above the $6.77 billion analysts were looking for.
In Canadian dollars, adjusted net income rose to $2.65 billion from $2.07 billion a year ago. Adjusted diluted earnings per share climbed to C$2.02 from C$1.52.
Segment Strength Across the Board
The bank's Canadian Banking division was the standout, with earnings of C$935 million — up 53% from the prior-year quarter. The bank credited strong pre-provision earnings growth, lower provisions for credit losses, and solid deposit growth.
International Banking earnings rose 3% year over year to C$736 million, helped by margin expansion and cost discipline. Global Wealth Management earnings climbed 19% to C$476 million, driven by higher mutual fund fees, brokerage income, and net interest income. Assets under management increased 18% to C$450 billion.
Global Banking and Markets earnings rose 11% to C$457 million, led by stronger capital markets performance.
Credit Quality Improves, Dividend Gets a Boost
The bank ended the quarter with a Common Equity Tier 1 ratio of 13.3%, a solid capital position. Provision for credit losses totaled C$1.217 billion, down from C$1.398 billion a year ago, signaling improving credit quality.
Shareholders got some good news too: the bank raised its quarterly dividend by C$0.04 to C$1.14 per share. The dividend will be paid on July 29, 2026, to shareholders of record as of July 7, 2026.
President and CEO Scott Thomson said the bank remains on track to meet its fiscal 2026 financial objectives and its target of achieving a return on equity above 14% 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,” Thomson said.
Investors liked what they saw. Bank of Nova Scotia shares were up 0.75% at $81.00 at the time of publication, hitting a new 52-week high.
