Bank of Nova Scotia Posts Solid Q2 as Canadian Banking Leads, RBC Says

MT Newswires Live
05/29

Bank of Nova Scotia's (BNS) fiscal Q2 results were broadly in line with expectations and showed sequential net interest margin improvement in Canadian banking, RBC Capital Markets said Thursday in a report.

RBC said Canadian banking delivered the strongest performance relative to its estimates.

Credit quality in Canada showed modest improvement, and the bank now expects impaired loan losses to settle in the mid-50-basis-point range for the remainder of 2026, slightly elevated versus its initial outlook while still easing from H1, the report said.

While Bank of Nova Scotia's valuation appears relatively attractive, its return-on-equity outlook remains below that of other Canadian banks in RBC's coverage, the report said.

RBC raised its fiscal 2026 core EPS estimate to 8.35 Canadian dollars ($6.05) from CA$8.09 and increased its fiscal 2027 estimate to CA$9.29 from CA$9.02. It lifted its price target on Bank of Nova Scotia's stock to CA$117 from CA$98 and maintained its sector-perform rating.

Price: 79.71, Change: -0.97, Percent Change: -1.20

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