Scotiabank posts record quarter as capital markets surge lifts profit past estimates

Scotiabank posts record quarter as capital markets surge lifts profit past estimates

Tue, August 25, 2026 at 6:39 PM GMT+3 1 min read

• BNS +5.43%
• BNS +5.43%

Bank of Nova Scotia (TSX:BNS) reported record quarterly earnings, beating analyst estimates as its capital markets unit posted stronger-than-expected results amid elevated market volatility.

Adjusted earnings per share came in at $2.28, ahead of the roughly $2.10 analysts had expected. Net income rose to $2.95 billion from $2.53 billion a year earlier, while revenue of $10.54 billion also beat forecasts. Adjusted return on equity was 14.2%.

The bank cited strength across its Canadian Banking, International Banking and Global Markets divisions. Canadian Banking posted its fifth consecutive quarter of margin expansion.

Shares of Scotiabank (TSX:BNS) jumped 4.7% in Toronto and 5% in New York.

Analysts at Jefferies said the outperformance in capital markets was the standout feature of the quarter, though they cautioned the market's reaction may be overweighting the contribution from trading and advisory activity. The firm noted that International and Domestic banking results were also solid, pointing to progress on management's strategic goals, and said the results could mark the start of a potential re-rating for the stock.

Jefferies raised its price target on Scotiabank (TSX:BNS) by $2 to $119, reflecting an increase to its 2027 earnings estimate, while cautioning that the elevated capital markets revenues seen in the quarter are unlikely to be sustained at the same pace going forward.