The Bank of Nova Scotia (BNS) Q3 2026 earnings summary

Executive summary

• Achieved record quarterly net income of $2,953 million, up 17% year-over-year, with all business lines reporting strong results and exceeding medium-term objectives; adjusted net income was $2,973 million, up 18% year-over-year.

• Diluted EPS rose to $2.27 from $1.84, and adjusted EPS reached $2.28, up from $1.88 last year; EPS growth was 23% year-over-year, adjusted EPS up 21%.

• Return on equity improved to 14.1% (reported) and 14.2% (adjusted), up from 12.2% (reported) and 12.4% (adjusted) last year, surpassing the 14% target.

• Strategic repositioning, improved capital allocation, and investments in technology and AI drove sustainable improvements and digital innovation.

• Returned $6.3 billion to shareholders year-to-date and CAD 8.3 billion over 12 months via buybacks and dividends; 8.6 million shares repurchased in the quarter.

Financial highlights

• Total revenue for Q3 2026 was $10,535 million, up 11% year-over-year; adjusted revenue up 16% ex. divestitures.

• Net interest income was $5,866 million, up 7% year-over-year; non-interest income up 17% year-over-year.

• Provision for credit losses was $1,079 million, up $38 million year-over-year; ratio increased to 56 bps, down 10 bps sequentially.

• Non-interest expenses were $5,556 million, up 9% year-over-year; adjusted non-interest expenses up 9%.

• Productivity ratio improved to 52.7% (adjusted 52.5%), up to 120 bps year-over-year.

Outlook and guidance

• Management expects continued ROE improvement above 14% through business mix, fee income growth, and productivity gains.

• Ongoing loan and deposit growth anticipated, especially in commercial, mid-market, and small business lending.

• International Banking targets 6%-8% revenue growth and double-digit earnings by 2027.

• Economic outlook remains cautious due to geopolitical tensions, trade uncertainty, and inflationary pressures; Canadian GDP growth forecast to slow to 0.9% in 2026.

• Capital deployment priorities remain organic growth, share buybacks, and strategic tuck-in acquisitions.