The Bank of Nova Scotia (BNS) investor relations material

Executive summary

• Net income for Q2 2026 was $2,632 million, up 30% year-over-year, with adjusted net income at $2,652 million and adjusted EPS of $2.02; diluted EPS was $2.00.

• Return on equity improved to 13.1% (reported) and 13.2% (adjusted), with a CET1 ratio of 13.3% after repurchasing 6.4 million shares.

• Quarterly dividend increased by $0.04 per share to $1.14, reflecting confidence in earnings growth.

• Strong revenue growth, expanding margins, and positive operating leverage contributed to results.

• Over the past 12 months, $7.5 billion was returned to shareholders via buybacks and dividends.

Financial highlights

• Total revenue for Q2 2026 was $9,837 million, up 8% year-over-year; net interest income rose 5–10% and non-interest income up 13–17%.

• Expenses increased 2–7% year-over-year, mainly due to higher personnel, technology, and business development costs.

• Pre-tax, pre-provision profit rose 17–22% year-over-year; productivity ratio improved to 52.5–52.8%.

• Provision for credit losses decreased to $1,217 million from $1,398 million; ratio fell to 66 bps.

• Net income attributable to equity holders was $2,595 million, up from $1,976 million.

Outlook and guidance

• On track to achieve fiscal 2026 financial objectives and targeting 14%+ ROE in fiscal 2027.

• Impaired PCLs expected to settle in the mid-50 bps range for the remainder of 2026, higher than previous guidance.

• Commercial loan growth and higher-quality deposit growth expected to accelerate through year-end.

• International Banking NIM expected to remain elevated (465–470 bps) for the rest of the year.

• Economic outlook anticipates slower, uneven global growth in 2026, with improvement in 2027; inflation and geopolitical risks remain key uncertainties.