Scotiabank Earnings Lifted by Record Result in Wealth Management, Global Markets Operations
Dow Jones2026/08/25 10:38By Robb M. Stewart
Bank of Nova Scotia notched a rise in earnings in its latest quarter, driven by strong results across its business lines that included a record result from its global wealth management and global banking and markets operations.
The big Canadian bank's third-quarter net income rose to 2.95 billion Canadian dollars (US$2.13 billion), or C$2.27 a share, from C$2.53 billion, or C$2, a year earlier. On an adjusted basis that strips out certain items, Scotiabank reported earnings of C$2.28 a share, above the C$2.10 mean forecast of analysts polled by FactSet.
Overall revenue increased 11% to C$10.54 billion for the three months through July 31, where analysts had expected C$9.98 billion.
Net interest income was 6.8% higher at C$5.87 billion, while noninterest revenue rose 17% to C$4.67 billion.
The bank, one of the largest in North America by assets, during the quarter exceeded its 14% return on equity target. The measure widened to 14.1% from 13.1% a quarter earlier and 12.2% in the same period last year.
Provisions for credit losses, money set aside to cover the risk of soured loans, totaled C$1.08 billion. That was down from C$1.22 billion the quarter before and below the C$1.12 billion analysts had anticipated, though elevated compared with last year's C$1.04 billion.
Scotiabank's common equity tier capital 1 ratio narrowed modestly to 13.1% from 13.3% at the end of the prior quarter, though remained well above the at least 11% of risk-weighted assets that the country's banking regulator requires Canada's largest lenders.
Trade and geopolitical tensions continue to weigh on the global economic outlook, with global economic growth is expected to soften through 2027, Scotiabank said in a letter to shareholders.
Uncertainty in Canada remains high after the Trump administration introduced a fresh round of tariffs aimed at select imports from Canada. Scotiabank said the tariffs, if maintained, will have a negative impact on Canada's real gross domestic product but that is likely to be largely offset by recent additional evidence of strong domestic conditions and increased fiscal support.
Scotiabank, which in late 2024 finalized a $2.8 billion investment in KeyCorp that gave it an almost 15% stake in the U.S. regional lender, has moved to tighten its focus on its core North American operations. Last year, it sold businesses in Colombia, Costa Rica and Panama to Banco Davivienda in exchange for a 20% stake in the enlarged Colombian lender.
The bank in late May extended its reach in the U.S. with an agreement to buy Texas-based Maple Financial, the parent of MapleMark Bank. In June, Scotiabank moved to take full control of its Jamaican arm with a proposal to buy shares not already owned of Scotia Group Jamaica for about C$500 million.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
August 25, 2026 06:38 ET (10:38 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Bank of Canada signals further interest rate hikes! Meeting minutes: High oil prices increase inflation risk, economic uncertainty will not hinder policy actions
The minutes of the Bank of Canada's October meeting reveal that, despite persistently high international oil prices and significant uncertainties in Canada's economic outlook caused by trade disputes with the United States, policymakers believe these risks do not mean the central bank must pause its actions.
Federal Reserve officials intensively deliver hawkish remarks! Waller calls for a 50 basis point rate hike in December, Bowman warns that AI investment returns may fall short of expectations, potentially triggering a sharp correction in US stocks
Several Federal Reserve officials issued consecutive hawkish signals on Tuesday, stating that inflationary pressures in the United States remain persistent and that monetary policy still needs to be further tightened.
Overnight US Stocks | Fed Rate Hike Expectations Rise, Major Indexes Fall, Nvidia (NVDA.US) Continues to Drop 5.4%
At the close, the Dow Jones Index fell by 156.67 points, down 0.30%, to 52,233.08 points; the S&P 500 Index dropped 28.99 points, down 0.38%, to 7,520.95 points; and the Nasdaq Composite Index declined 187.26 points, down 0.74%, to 25,065.87 points.
CoreWeave (CRWV.US) Q3 revenue surged 168% year-on-year, raised full-year revenue guidance, surged about 5% after hours
Benefiting from the continued growth in demand for AI computing power, CoreWeave's third-quarter revenue increased by 168% year-on-year, surpassing Wall Street expectations, and the company has raised its full-year revenue guidance.
Crypto prices
More
