Bank Of Nova Scotia (TSE:BNS)
NYSE:BNS
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Bank Of Nova Scotia
(NYSE:BNS)
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Rating:69Neutral
Price Target:
C$126.00
â–²(20.09% Upside)
Action:Reiterated
Date:06/12/26
The score is driven by stable-to-good financial performance (solid profitability and cash generation, tempered by leverage and uneven revenue trends) and constructive technical momentum (price above key moving averages with positive MACD). Earnings-call takeaways are supportive due to strong capital and profitability momentum, but elevated credit provisions and deposit/expense headwinds keep the rating below higher-conviction levels; valuation is reasonable with a solid dividend yield.
Positive Factors
Capital strength & shareholder returns
A CET1 ratio of 13.3% plus active buybacks and a dividend hike indicate a durable capital buffer and disciplined capital allocation. This supports continued shareholder returns while preserving regulatory headroom and funding optionality, strengthening long-term investor confidence.
Negative Factors
Elevated credit provisions
Sustained elevated impaired provisions and a larger allowance reflect real credit stress and concentration risk. Persistently higher PCLs reduce reserve-adjusted earnings power and can consume capital over time, increasing sensitivity to slower macro or sector-specific recoveries.
Read all positive and negative factors
Positive Factors
Negative Factors
Capital strength & shareholder returns
A CET1 ratio of 13.3% plus active buybacks and a dividend hike indicate a durable capital buffer and disciplined capital allocation. This supports continued shareholder returns while preserving regulatory headroom and funding optionality, strengthening long-term investor confidence.
Read all positive factors
Bank Of Nova Scotia (BNS) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$152.19B
Dividend Yield4.32%
Average Volume (3M)3.02M
Price to Earnings (P/E)15.8
Beta (1Y)0.70
Revenue Growth-5.52%
EPS Growth47.19%
CountryCA
Employees85,218
SectorFinancial
Sector Strength70
IndustryBanks - Diversified
Share Statistics
EPS (TTM)7.29
Shares Outstanding1,232,534,000
10 Day Avg. Volume3,217,030
30 Day Avg. Volume3,016,348
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$115.22Price Target Upside9.82% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)8.29
Revenue Forecast (FY)C$39.85B
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
Scotiabank primarily makes money through a mix of net interest income and non-interest (fee-based) income generated across its banking and financial services businesses. (1) Net interest income: A core earnings driver comes from lending activities...
Bank Of Nova Scotia Earnings Call Summary
Earnings Call Date:May 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance: solid earnings, revenue and margin expansion, good capital ratios, sizable shareholder returns and clear strategic momentum across Canadian Banking, Wealth, International (notably Mexico) and Capital Markets, plus deliberate AI and tech investments. However, the positive picture is tempered by elevated credit provisions driven by a concentrated corporate impairment in International Banking, modest pressure on deposits (term contraction) and higher expense/investment levels. Management expects provisions to moderate but at a more gradual pace than previously guided. Overall, the positive business momentum and capital strength outweigh the near-term credit and deposit headwinds.Positive Updates
Strong Profitability and Earnings Growth
Adjusted earnings of $2.7B and diluted EPS of $2.02; pretax pre-provision earnings up 16% year-over-year; return on equity 13.2%, up 270 basis points YoY and on track for 14%+ in FY2027 (one year ahead of target).
Negative Updates
Elevated Credit Provisions and Impaired Loans
All-Bank provisions were $1.2B or 66 basis points (up 5 bps Q/Q); impaired provisions $1.1B (61 bps); allowance increased to $7.3B or 96 bps (up 2 bps Q/Q); gross impaired loans rose 4 bps Q/Q to 99 bps. Management now expects impaired PCLs to settle in the mid-50 bps range for remainder of FY2026 (higher than prior guidance).
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Profitability and Earnings Growth
Adjusted earnings of $2.7B and diluted EPS of $2.02; pretax pre-provision earnings up 16% year-over-year; return on equity 13.2%, up 270 basis points YoY and on track for 14%+ in FY2027 (one year ahead of target).
Read all positive updates
Company Guidance
Management guided that impaired PCLs should settle in the mid‑50 basis point range for the remainder of fiscal 2026 — moderating from H1 but more gradually than previously expected — with non‑retail impaired PCLs expected to meaningfully moderate from Q2 levels; Q2 actuals were All‑Bank provisions $1.2B (66 bps) with impaired PCLs $1.1B (61 bps) and performing provisions ~5 bps (≈$50M), allowance increased by $159M to $7.3B (96 bps) and gross impaired loans were 99 bps. They reiterated capital strength (CET1 13.3% after repurchasing 6.4M shares, 13 bps capital usage; model updates also consumed 13 bps), said they will continue returning capital while prioritizing organic growth, and maintained medium‑term targets (ROE on track for 14%+ in FY2027) alongside operating expectations — overall loan growth low single digits, commercial loans +2% Q/Q with acceleration expected, small business high single digits, spot credit cards mid‑single digits by year‑end, mortgages in line with peers, and international deposits +3% Q/Q (+5% Y/Y).Bank Of Nova Scotia Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
58
Neutral
Cash Flow
72
Positive
| Breakdown | TTM | Oct 2025 | Oct 2024 | Oct 2023 | Oct 2022 | Oct 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 61.04B | 73.18B | 29.48B | 31.79B | 31.15B | 30.91B |
| Gross Profit | 33.58B | 32.38B | 29.56B | 31.79B | 31.15B | 30.91B |
| EBITDA | 13.72B | 10.56B | 10.56B | 11.49B | 14.20B | 14.00B |
| Net Income | 9.55B | 7.79B | 7.76B | 7.41B | 9.92B | 9.62B |
Balance Sheet | ||||||
| Total Assets | 1.52T | 1.46T | 1.41T | 1.41T | 1.35T | 1.18T |
| Cash, Cash Equivalents and Short-Term Investments | 9.10B | 108.10B | 108.17B | 140.83B | 119.31B | 120.05B |
| Total Debt | 286.37B | 236.69B | 300.67B | 313.81B | 310.86B | 245.66B |
| Total Liabilities | 1.43T | 1.37T | 1.33T | 1.33T | 1.27T | 1.11T |
| Stockholders Equity | 87.16B | 86.87B | 82.37B | 76.93B | 73.22B | 70.80B |
Cash Flow | ||||||
| Free Cash Flow | 13.64B | 10.14B | 15.16B | 31.28B | 16.37B | -13.27B |
| Operating Cash Flow | 14.21B | 10.49B | 15.65B | 11.47B | 16.94B | -12.81B |
| Investing Cash Flow | -125.48B | -19.00B | -7.45B | -30.04B | -11.29B | 14.70B |
| Financing Cash Flow | 109.47B | 9.18B | -8.84B | 16.71B | -4.58B | -2.78B |
Bank Of Nova Scotia Technical Analysis
Positive
104.92
Price Trends
110.07
Positive
104.48
Positive
98.87
Positive
Market Momentum
3.95
Negative
72.90
Negative
75.82
Neutral
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 104.92 is below the 20-day moving average (MA) of 116.26, below the 50-day MA of 110.07, and above the 200-day MA of 98.87, indicating a bullish trend. The MACD of 3.95 indicates Negative momentum. The RSI at 72.90 is Negative, neither overbought nor oversold. The STOCH value of 75.82 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | C$175.04B | 18.98 | 11.25% | 3.61% | -4.35% | 21.22% | |
72 Outperform | C$396.75B | 17.94 | 15.95% | 2.58% | 1.99% | 22.50% | |
71 Outperform | C$86.67B | 19.58 | 13.77% | 2.64% | 6.36% | 7.80% | |
70 Outperform | C$150.29B | 15.96 | 15.24% | 3.07% | -3.32% | 27.25% | |
69 Neutral | C$152.19B | 15.85 | 11.06% | 4.32% | -5.52% | 47.19% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
65 Neutral | C$286.08B | 18.78 | 11.85% | 3.34% | -11.69% | -11.99% |
* Financial Sector Average
TSE:BNS
Bank Of Nova Scotia
122.57
51.02
71.30%
TSE:BMO
Bank Of Montreal
247.86
104.36
72.72%
TSE:CM
Canadian Bank of Commerce
162.19
69.34
74.67%
TSE:RY
Royal Bank Of Canada
289.12
116.73
67.72%
TSE:TD
Toronto Dominion Bank
170.90
74.96
78.13%
TSE:NA
National Bank of Canada
223.81
89.16
66.22%
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.