| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 74 | 11.4x | 17.8x | Top tier | |
Growth | 71 | 51.2% | 7.1% | Top tier | |
Quality | 67 | — | — | Top tier | |
Safety | 10 | — | — | Bottom tier | |
Capital Return | 87 | 3.30% | 2.12% | Top tier | |
Momentum | 98 | 39.3% | 2.9% | Top tier | |
Sentiment | 96 | 8 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
The Bank of Nova Scotia, known as Scotiabank and ticker BNS, operates through four main engines: Canadian Banking, Global Wealth Management, Global Banking and Markets, and International Banking. The bank generates income from net interest on loans and deposits, fees from mutual funds, cards, insurance, and brokerage, as well as trading, underwriting, advisory services, and capital markets. In the latest available EDGAR data for quarter 1 of fiscal 2026, revenue was $9.6 billion, net income was $2.3 billion, and earnings per share were $1.73, compared with revenue of $37.7 billion and net income of $7.8 billion in fiscal 2025.
The quarter 3 fiscal 2026 call showed record performance, with quarterly adjusted earnings of $3 billion and diluted earnings per share of $2.28, up 21% year over year and above analysts' estimate of $2.10. Adjusted revenue, excluding the impact of divestitures, grew 16%, with net interest income up 12% and non-interest income up 21%; net interest margin also expanded 18 basis points year over year and remained stable quarter over quarter. Return on equity was 14.2%, while the productivity ratio improved 90 basis points to 52.5%, and the bank delivered positive operating leverage for the tenth consecutive quarter.
The earnings mix was broad-based in quarter 3 of fiscal 2026: Canadian Banking generated $1.1 billion, up 12%; Global Wealth Management generated $515 million, up 23%; Global Banking and Markets generated $647 million, up 37%; and International Banking generated $725 million, up 6%. Global Banking and Markets recorded revenue growth of 32%, while Wealth Management revenue grew 18% and International Banking revenue grew 7% on a constant-currency basis and excluding divested operations. The bank ended the quarter with a CET1 capital ratio of 13.1% after repurchasing 8.6 million shares, while capital returned to shareholders through dividends and repurchases totaled $8.3 billion during the twelve months ended quarter 3 of fiscal 2026.
The average analyst price target is $72.15, within a range of $67 to $75.596, with a consensus rating of Buy. The average is approximately 18% above the 52-week range low of $61.06, but approximately 23% below the high of $93.435; this gap reflects a combination of optimism about improving return on equity and caution regarding the repeatability of the capital markets surge and international credit risks.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Adjusted earnings per share were $2.28 on August 25, 2026, exceeding analysts' estimate of $2.10 and rising 21% year over year. Adjusted revenue grew 16%, net interest income rose 12%, and non-interest income increased 21%. Global Banking and Markets performance was pivotal, with revenue up 32% and earnings rising 37% to $647 million.
Return on equity reached 14.2% in quarter 3 of fiscal 2026, up 170 basis points year over year. The bank thereby exceeded its medium-term target of 14% or higher ahead of management's expected timeline. In Canadian Banking, return on equity reached 19.4% after a quarter-over-quarter improvement of 160 basis points, and management aims to support it through non-mortgage lending, low-cost deposits, fees, and productivity.
Global Wealth Management generated earnings of $515 million in quarter 3 of fiscal 2026, up 23% year over year, while its revenue increased 18%. Net flows were $3 billion, a third-quarter record, and the segment recorded eight consecutive quarters of positive flows. Assets under management also rose 16%, assets under administration increased 13%, and net retail mutual fund sales exceeded $4 billion since the start of fiscal 2026.
Automated analysis for informational purposes only — not investment advice.
Total provisions for credit losses were $1.1 billion, or 56 basis points, in quarter 3 of fiscal 2026, down 10 basis points quarter over quarter. Impaired provisions declined to 52 basis points, but gross impaired loans increased 1 basis point to 100 basis points, and the allowance for credit losses reached $7.6 billion. The bank continued to monitor mortgage delinquencies, while the retail portfolio's average FICO score was 798.
The bank ended quarter 3 of fiscal 2026 with a CET1 ratio of 13.1%, after using capital for organic growth and repurchasing 8.6 million shares. The total returned to shareholders through dividends and share repurchases was $8.3 billion during the twelve months ended that quarter. Management ranks organic growth first, followed by share repurchases and then small tuck-in acquisitions that address a specific need, while expecting CET1 to remain near 13% in quarter 4 of fiscal 2026.
International Banking generated earnings of $725 million in quarter 3 of fiscal 2026, up 6%, but its total loans declined 1% year over year due to a 7% decrease in non-retail loans. The provision for credit losses ratio was 138 basis points, and the quarter included an additional provision of $57 million for a corporate account in Brazil. The transition to the advanced internal ratings-based approach will also reduce capital by approximately 15 basis points in quarter 4 of fiscal 2026, and the Chilean tax change, once enacted, will result in a one-time write-off of a deferred tax asset.
