Scotiabank Earnings Lifted by Record Result in Wealth Management, Global Markets Operations

By 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)