Scotiabank Beats Q3 2026 Profit Estimates As ROE Clears 14% Target

Scotiabank (TSX: BNS) posted Q3 2026 net income of $2.95 billion, up from $2.53 billion a year earlier, translating to diluted earnings per share of $2.27 from $1.84 last year.

On an adjusted basis, net income reached $2.97 billion, up from $2.52 billion last year. Adjusted diluted EPS was $2.28, compared with $1.88 a year earlier, beating the $2.10 analyst estimate cited by Reuters.

Revenue rose to $10.54 billion from $9.49 billion last year. Net interest income climbed to $5.87 billion, while non-interest income reached $4.67 billion.

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Canadian Banking net income rose to $1.07 billion from $958.0 million last year while Global Wealth Management reached $515.0 million from $417.0 million and Global Banking and Markets jumped to $647.0 million from $473.0 million. The bank’s adjusted productivity ratio improved to 52.5% from 53.7% last year.

International Banking attributable earnings increased to $725.0 million from $670.0 million reported last year. On a constant-dollar basis, however, last year’s comparable was $733.0 million, meaning earnings fell as lower revenue outweighed lower expenses, taxes, and credit provisions.

Provision for credit losses increased to $1.08 billion from $1.04 billion last year but fell from $1.22 billion in Q2. Gross impaired loans increased to $7.80 billion from $7.61 billion last quarter, while total credit-loss allowances rose to $7.55 billion from $7.34 billion.

Operating activities used $16.81 billion of cash during the quarter, compared with generating $4.38 billion a year earlier, largely reflecting changes in securities financing, loans, and deposits.

The CET1 ratio fell to 13.1% from 13.3% in Q2 as business growth, a securitization recall, and share repurchases offset earnings net of dividends. Scotiabank repurchased 8.6 million shares during the quarter and has returned $6,300.0 million through dividends and buybacks year to date.

CEO Scott Thomson said the quarter pushed adjusted ROE to 14.2%, above the bank’s 14% medium-term objective.

Scotiabank maintained its quarterly dividend at $1.14 per share.

Scotiabank last traded at $120.29 on the TSX.

Information for this briefing was found via the sources and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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