Bank Of Nova Scotia (the) Stock Earnings Reports

Scotiabank reported adjusted Q2 FY26 earnings of $2.7 billion ($2.02 per share) with pretax pre-provision earnings up 16% year-over-year and ROE of 13.2%. CET1 remained strong at 13.3 after repurchasing 6.4 million shares. Management raised the quarterly dividend by $0.04 and reiterated a capital deployment priority of: organic growth, buybacks, then small tuck-in M&A. Canadian Banking showed continued margin expansion, fee growth (cards, wealth, insurance), improved productivity and sequential commercial loan growth; management expects commercial and card growth to accelerate into year-end. International Banking delivered revenue and profit growth (notably Mexico), with NIM expansion aided by lower funding costs; management expects non-mortgage retail growth and improving commercial pipelines. Global Wealth Management posted strong net sales and flow momentum, while Global Banking & Markets saw a 25% YoY capital markets lift and an improving deal pipeline. The bank launched enterprise AI initiatives (Scotia Intelligence, Scotia Navigator) to scale secure, governed AI across operations. Credit: All-Bank provisions were $1.2 billion (66 bps) with impaired PCLs at 61 bps, driven mainly by one large corporate in International Banking; allowance for credit losses rose to $7.3 billion (96 bps). Management now expects impaired PCLs to settle in the mid-50 bps range for the remainder of 2026 (a more gradual decline than previously guided), but remains comfortable with reserve levels and portfolio quality. Financial targets: management expects to reach 14%+ ROE in fiscal 2027 (one year ahead of previous target) and plans continued capital returns while investing in growth and technology.