Scotiabank Shares Surge on Record Quarterly Profit, Above-Target Returns

Shares of Bank of Nova Scotia (TSX/NYSE: BNS) rallied sharply on Tuesday, August 25, 2026, jumping as much as 5-7% intraday after the Toronto-based lender posted record fiscal third-quarter results that comfortably beat Wall Street and Bay Street expectations.

Scotiabank reported net income of C$2.95 billion, up from C$2.53 billion a year earlier, with diluted earnings per share of C$2.28 topping consensus estimates. Revenue climbed to roughly C$10.5 billion, also ahead of forecasts, as growth was broad-based across the bank’s major business lines. Return on equity pushed past management’s 14% target, a milestone investors had been watching closely after several quarters of pressure from elevated provisions and macro uncertainty.

The standout performer was Global Banking and Markets, which delivered record results on strong trading and underwriting activity, while Canadian Banking and International Banking also posted solid gains. Management pointed to disciplined expense control and improving credit quality as further tailwinds, helping ease concerns about the drag from tariff-related trade tensions that had weighed on the sector heading into earnings season.

Scotiabank’s beat came alongside similarly upbeat numbers from Bank of Montreal the same morning, lifting the broader, financials-heavy TSX index and prompting several analysts to raise price targets on BNS following the print. Investors, who had been cautious about whether Canadian banks could sustain momentum amid trade-war noise, appeared reassured that credit costs remained contained even as loan growth held up.

By late morning, BNS shares on the NYSE traded near $91, reflecting the strongest single-day gain for the stock in months and outpacing peers in the sector.