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Bank Of Nova Scotia
(TSX:BNS)
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Rating:68Neutral
Price Target:
C$140.00
â–²(8.75% Upside)
Action:Reiterated
Date:08/26/26
The score is driven primarily by improved financial performance (strong TTM profitability and cash-flow rebound) tempered by elevated leverage and historical volatility. The latest earnings call adds support via confident guidance, stronger ROE, and sustained operating leverage, while technical indicators flag weaker near-term momentum despite an overall uptrend. Valuation is reasonable with a supportive dividend, but not compelling enough to materially lift the score on its own.
Positive Factors
Broad-based revenue and margin expansion
Growth across interest and fee income improves earnings diversification and supports durable profitability. Expansion in net interest margin and non-interest revenue indicates stronger customer activity and business momentum across multiple banking divisions.
Negative Factors
Elevated leverage limits balance-sheet flexibility
Higher leverage is inherent to banking but still increases sensitivity to credit losses, funding conditions and market stress. Compared with the prior year, the elevated ratio limits flexibility and can constrain the bank's ability to pursue growth during adverse conditions.
Read all positive and negative factors
Positive Factors
Negative Factors
Broad-based revenue and margin expansion
Growth across interest and fee income improves earnings diversification and supports durable profitability. Expansion in net interest margin and non-interest revenue indicates stronger customer activity and business momentum across multiple banking divisions.
Read all positive factors
Bank Of Nova Scotia (BNS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$159.80B
Dividend Yield3.42%
Average Volume (3M)3.23M
Price to Earnings (P/E)16.8
Beta (1Y)0.69
Revenue Growth-3.29%
EPS Growth43.84%
CountryCA
Employees81,734
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)7.72
Shares Outstanding1,232,534,000
10 Day Avg. Volume3,899,959
30 Day Avg. Volume3,231,251
Financial Highlights & Ratios
PEG Ratio-9.36
Price to Book (P/B)1.32
Price to Sales (P/S)1.56
P/FCF Ratio11.28
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$135.40Price Target Upside5.18% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)8.55
Revenue Forecast (FY)C$40.64B
Bank Of Nova Scotia Business Overview & Revenue Model
Company Description
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking...
How the Company Makes Money
BNS primarily earns revenue from (1) net interest income and (2) non-interest income (fees and market-related revenues). Net interest income is generated by taking deposits and other funding (typically at lower rates) and deploying that funding in...
Bank Of Nova Scotia Earnings Call Summary
Earnings Call Date:Aug 25, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Dec 02, 2026
Earnings Call Sentiment Positive
The call highlighted broad-based, multi-segment outperformance with record EPS, strong ROE improvement, robust revenue and capital markets results, positive operating leverage and a healthy capital position while management continues to invest in technology, AI and strategic growth. Headwinds include elevated expenses tied to growth initiatives, pockets of credit stress in international portfolios (notably a specific Brazil account), some mortgage delinquency hot spots, and one-time/timing capital impacts (RWA changes, AIRB migration and a Chile deferred tax adjustment). Overall, positive operational momentum and capital strength materially outweigh the manageable and largely identified risks.Positive Updates
Record Earnings and EPS Growth
Quarterly net income of $3.0 billion and record diluted EPS of $2.28, up 21% year-over-year.
Negative Updates
Expense Growth and Elevated Tech Spend
Total expenses rose 14% year-over-year, driven by higher performance/share-based compensation and elevated technology investment (tech spend +16% YoY to $1.5 billion).
Read all updates
Q3-2026 Updates
Positive
Negative
Record Earnings and EPS Growth
Quarterly net income of $3.0 billion and record diluted EPS of $2.28, up 21% year-over-year.
Read all positive updates
Company Guidance
Management guided that momentum should carry into Q4 and fiscal 2027, highlighting that the bank has already exceeded its 14%+ ROE target (Q3 ROE 14.2%) and does not view 14% as a ceiling, with Canadian Banking ROE at 19.4% (up 160 bps QoQ) expected to continue driving group ROE; CET1 is expected to remain around 13% next quarter after deploying ~23 bps to organic growth and repurchasing 8.6M shares (≈20 bps capital use) while absorbing a ~15 bps hit from certain portfolios moving from standardized to AIRB. They reiterated priorities of deploying capital to organic growth, then buybacks and tuck‑ins (having returned $8.3B over the past 12 months), and forecast continued loan and deposit growth (avg. loans +4% YoY, deposits +5% YoY; Canadian commercial loans +3% QoQ; small business +3% QoQ / +10% YoY; GBM loans +7% QoQ; International retail loans ~+5% YoY), further NII and fee momentum (NII +12% YoY, non‑interest income +21% YoY, NIM +18 bps YoY), sustained positive operating leverage (10th consecutive quarter; YTD operating leverage 3.9%; productivity ratio improved 90 bps to 52.5%), and a moderating credit outlook (all‑bank provisions $1.1B or 56 bps, impaired PCLs 52 bps and expected to trend lower in H2).Bank Of Nova Scotia Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 71.07B | 73.18B | 29.48B | 31.79B | 31.15B | 30.91B |
| Gross Profit | 34.37B | 32.38B | 29.56B | 31.79B | 31.15B | 30.91B |
| EBITDA | 13.64B | 10.56B | 10.56B | 11.49B | 14.20B | 14.00B |
| Net Income | 10.01B | 7.79B | 7.76B | 7.41B | 9.92B | 9.62B |
Balance Sheet | ||||||
| Total Assets | 1.55T | 1.46T | 1.41T | 1.41T | 1.35T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 10.33B | 108.10B | 108.17B | 140.83B | 119.31B | 120.05B |
| Total Debt | 272.46B | 236.69B | 300.67B | 313.81B | 310.86B | 245.66B |
| Total Liabilities | 1.46T | 1.37T | 1.33T | 1.33T | 1.27T | 1.11T |
| Stockholders Equity | 89.15B | 86.87B | 82.37B | 76.93B | 73.22B | 70.80B |
Cash Flow | ||||||
| Free Cash Flow | 22.57B | 10.14B | 15.16B | 31.28B | 16.37B | -13.27B |
| Operating Cash Flow | 23.21B | 10.49B | 15.65B | 11.47B | 16.94B | -12.81B |
| Investing Cash Flow | -132.34B | -19.00B | -7.45B | -30.04B | -11.29B | 14.70B |
| Financing Cash Flow | 107.50B | 9.18B | -8.84B | 16.71B | -4.58B | -2.78B |
Bank Of Nova Scotia Technical Analysis
Positive
128.73
Price Trends
124.17
Positive
116.61
Positive
107.11
Positive
Market Momentum
1.71
Negative
60.30
Neutral
83.53
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:BNS, the sentiment is Positive. The current price of 128.73 is above the 20-day moving average (MA) of 125.95, above the 50-day MA of 124.17, and above the 200-day MA of 107.11, indicating a bullish trend. The MACD of 1.71 indicates Negative momentum. The RSI at 60.30 is Neutral, neither overbought nor oversold. The STOCH value of 83.53 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:BNS.
Bank Of Nova Scotia Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$150.81B | 15.51 | 15.44% | 2.57% | 0.14% | 26.17% | |
70 Outperform | C$404.17B | 18.33 | 16.11% | 2.26% | 4.67% | 19.97% | |
68 Neutral | C$159.80B | 16.79 | 11.41% | 3.46% | -3.29% | 43.84% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$84.39B | 17.99 | 14.36% | 2.29% | 7.97% | 17.60% | |
64 Neutral | C$169.24B | 19.74 | 10.58% | 2.75% | -1.74% | 7.63% | |
61 Neutral | C$284.24B | 17.97 | 12.83% | 2.57% | -10.53% | -20.00% |
* Financial Sector Average
TSE:BNS
Bank Of Nova Scotia
129.65
45.11
53.36%
TSE:BMO
Bank Of Montreal
242.76
73.10
43.09%
TSE:CM
Canadian Bank of Commerce
162.75
58.24
55.73%
TSE:RY
Royal Bank Of Canada
291.48
97.10
49.95%
TSE:TD
Toronto Dominion Bank
168.24
68.28
68.31%
TSE:NA
National Bank of Canada
217.91
76.04
53.60%
Bank Of Nova Scotia Corporate Events
Stock BuybackDividendsFinancial Disclosures
Scotiabank Delivers Record Q3 2026 Earnings and Surpasses ROE Target
Positive
Aug 25, 2026
Scotiabank reported record third quarter 2026 results, with net income rising to $2,953 million from $2,527 million a year earlier and diluted earnings per share increasing to $2.27 from $1.84. Adjusted net income reached $2,973 million and adjust...
Business Operations and StrategyDividends
Scotiabank Declares $1.14 Dividend and Maintains Market-Based Reinvestment Plan
Positive
Aug 25, 2026
Scotiabank has declared a quarterly dividend of $1.14 per common share, payable on October 28, 2026, to shareholders of record as of October 6, 2026, reinforcing its ongoing capital return to investors. The bank continues to offer a dividend reinv...
Business Operations and StrategyExecutive/Board Changes
SPARC AI Announces Resignation of Non-Executive Director Justin Hanka
Negative
Jul 22, 2026
SPARC AI Inc. announced that Justin Hanka has resigned from his role as Non-Executive Director, effective July 16, 2026, marking a change in the company’s board composition. The departure comes as SPARC AI continues to focus on deploying its...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.