$BNS

The TSX Composite Index fell 0.3% to 36,514 on Friday after Canadian jobs data missed expectations, showing a 41,700 decline. US payrolls surged, boosting Fed rate hike expectations. Major banks, miners, and tech stocks were mixed, with TD Bank and Scotiabank down, while Celestica rose.

Scotiabank reported record quarterly earnings of CDN$2.95B, up 17% YoY. Caribbean mortgage impairments rose to CDN$34M, up from CDN$31M sequentially, though down YoY. Caribbean revenue was CDN$740M, up from CDN$700M YoY. The bank plans to fully acquire its Jamaican subsidiary for CDN$506M, expected to close in Q4 2026.

Scotiabank (BNS) reported Q3 results with ROE at 14.2%, adjusted net income of $2.97B, and EPS up 21% YoY. All divisions grew, with Canadian Banking up 12%, Global Banking & Markets at a record $647M, and Wealth Management up 23%. Expenses rose 14% YoY due to pay and tech spending. Some credit risks were noted, including mortgage delinquencies and a provision for a Brazilian account.

Canada’s Big 6 banks all beat Q3 earnings estimates, with EPS surprises ranging from +5.9% to +13.1%. Despite the beats, three banks saw stock declines, while Scotiabank surged. Analysts have raised EPS estimates, and tailwinds include stabilizing margins and strong capital markets. Forward growth estimates range from +7.7% to +12.4%.

Scotiabank's stock has gained over 15% in the past three months, outperforming its peers and the S&P/TSX Composite Index. Its valuation is lower than other Big Six banks, with a P/E ratio of 15.3 and a dividend yield of 3.5%. The bank's Q3 results showed improved profitability, with ROE rising to 14.2%. CEO Scott Thomson's strategic priorities are driving these improvements.

Scotiabank reported Q3 adjusted earnings of $2.28 per share, up from $1.88, with revenue at $10.54B. BMO's profit fell to $1.75B due to a one-time charge, but adjusted earnings rose to $3.96 per share. EQB posted a $127.3M loss but saw revenue increase to $391.3M. National Bank's profit grew 20% to $1.31B, with adjusted earnings at $3.39 per share.

Bank of Nova Scotia (BNS) reported Q3 adjusted net income of C$2.97B, EPS of C$2.28, and ROE of 14.2%, exceeding its 14%+ target. IFRS net income was C$2.95B with ROE of 14.1%. Shares rose 7.2% post-earnings. Earnings growth was seen across Canadian Banking, Global Wealth Management, and Global Banking and Markets. Credit provisions increased, and the CET1 ratio declined slightly.

Canada's major banks reported Q3 earnings, with all six beating analysts' expectations. Scotiabank (BNS) saw a 17% profit increase, BMO (BMO) reported a 25% decline but beat estimates, and RBC (RY) posted an 11% rise. National Bank (NA), CIBC (CM), and TD Bank (TD) also reported higher profits. Canadian bank stocks have risen 24% this year.

Scotiabank (BNS) reported Q3 earnings of Cdn$2.28 per share, beating estimates. Revenue rose 11% to Cdn$10.54B. Adjusted net income increased to Cdn$2.97B. Shares fell 0.81% post-announcement. Wealth and capital markets divisions set records, with earnings up 23% and 37% respectively. Return on equity reached 14.2%, exceeding the bank's target.

National Bank of Canada upgraded Bank of Nova Scotia (BNS) to Outperform, citing strong capital markets and Canadian banking metrics. BNS offers a 3.43% dividend yield with a 56% payout ratio, but is 52.5% overvalued per GF Value™. Its GF Score™ is 67/100, with strong momentum but weak financial strength. Five gurus hold BNS, with mixed recent activity. The bank reported improved credit quality and core operations.