Scotiabank posts record quarter as capital markets surge lifts profit past estimates

Finance Financial Services Written by: Angela Harmantas 11:39 Tue 25 Aug 2026 --> Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government. She earned a Bachelor of... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Bank of Nova Scotia ( TSX:BNS ) View Price & Profile Scotiabank posts record quarter as capital markets surge lifts profit past estimates Published: 11:39 25 Aug 2026 EDT Bank of Nova Scotia (TSX:BNS) reported record quarterly earnings, beating analyst estimates as its capital markets unit posted stronger-than-expected results amid elevated market volatility. Adjusted earnings per share came in at $2.28, ahead of the roughly $2.10 analysts had expected. Net income rose to $2.95 billion from $2.53 billion a year earlier, while revenue of $10.54 billion also beat forecasts. Adjusted return on equity was 14.2%. The bank cited strength across its Canadian Banking, International Banking and Global Markets divisions. Canadian Banking posted its fifth consecutive quarter of margin expansion. Shares of Scotiabank (TSX:BNS) jumped 4.7% in Toronto and 5% in New York. Analysts at Jefferies said the outperformance in capital markets was the standout feature of the quarter, though they cautioned the market's reaction may be overweighting the contribution from trading and advisory activity. The firm noted that International and Domestic banking results were also solid, pointing to progress on management's strategic goals, and said the results could mark the start of a potential re-rating for the stock. Jefferies raised its price target on Scotiabank (TSX:BNS) by $2 to $119, reflecting an increase to its 2027 earnings estimate, while cautioning that the elevated capital markets revenues seen in the quarter are unlikely to be sustained at the same pace going forward. Continue reading