The Bank of Nova Scotia Q3 2026 Earnings Recap

Scotiabank’s Q3 results clearly impressed investors, driving a 7.9% stock gain as revenues and earnings across key segments notably outperformed expectations, supported by solid loan growth, margin expansion, and robust capital deployment.

Key Takeaways

• Reported record earnings per share of $2.28, a 21% year-over-year increase, powered primarily by Canadian Banking’s 160 basis point sequential ROE improvement to 19.4%.
• Achieved positive operating leverage for the tenth consecutive quarter while maintaining a strong CET1 ratio of 13.1%, despite capital returns including $8.3 billion over the last 12 months via buybacks and dividends.
• Commercial loan growth accelerated to 3% sequentially in Canadian Banking, supported by focused investments in mid-market and small business lending; credit card balances also increased 3% quarter-over-quarter with a higher premium acquisition mix.
• International Banking showed improving loan and deposit trends, with retail loans up 5% year-over-year and earnings consistently above $700 million for the third straight quarter.
• Global Banking and Markets posted record quarterly net income amid strong deal flow in capital markets and investment banking, including landmark debt and IPO transactions in Canada.