The Bank of Nova Scotia (BNS) Q2 2026 earnings summary

Executive summary

• Net income for Q2 2026 was $2,632 million, up 30% year-over-year, with adjusted net income of $2,652 million and diluted EPS of $2.00 (adjusted EPS $2.02), reflecting strong revenue growth, expanding margins, and positive operating leverage.

• Return on equity improved to 13.1% (reported) and 13.2% (adjusted), compared to 10.1% and 10.4% last year.

• CET1 capital ratio was 13.3%, unchanged sequentially, with a quarterly dividend increase of $0.04 per share to $1.14.

• Canadian Banking earnings rose 53% year-over-year; International Banking up 3–4%; Global Wealth Management up 19%; Global Banking and Markets up 11%.

• Over the past 12 months, $7.5 billion was returned to shareholders via buybacks and dividends, with a focus on organic growth and selective acquisitions.

Financial highlights

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

• Pre-tax, pre-provision profit rose 17–20% year-over-year; productivity ratio improved to 52.5–52.8%, down 290–350 bps year-over-year.

• Provision for credit losses decreased to $1,217 million from $1,398 million; PCL ratio at 66 bps, down 9 bps year-over-year.

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

• 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, one year ahead of target.

• Expect to maintain strong capital ratios while continuing share buybacks and dividend growth.

• Loan growth momentum expected to accelerate in Canadian commercial and International Banking segments.

• Impaired PCLs expected to settle in the mid-50 basis point range for the remainder of 2026, moderating gradually from first half levels.

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