Bank of Nova Scotia ( BNS ) reported second-quarter fiscal 2026 results on Wednesday, with earnings and revenue topping analyst expectations.

In U.S. dollar terms, the bank posted adjusted earnings of $1.47 per share, slightly ahead of the $1.46 consensus estimate. Revenue came in at $7.17 billion, exceeding analyst expectations of $6.77 billion.

Earnings Rise Across Key Segments

In Canadian dollar terms, adjusted net income rose to $2.65 billion from $2.07 billion a year ago quarter.

Adjusted diluted earnings per share rose to 2.02 Canadian dollars from 1.52 Canadian dollars a year earlier.

The bank's Canadian Banking division reported earnings of 935 million Canadian dollars, up 53% from the prior-year quarter, supported by strong pre-provision earnings growth, lower provisions for credit losses, and solid deposit growth.

International Banking earnings rose 3% year over year to 736 million Canadian dollars, helped by margin expansion and cost discipline.

Global Wealth Management earnings climbed 19% to 476 million Canadian dollars, driven by higher mutual fund fees, brokerage income, and net interest income. Assets under management increased 18% year over year to 450 billion Canadian dollars.

Global Banking and Markets earnings rose 11% to 457 million Canadian dollars, led by stronger capital markets performance.

Credit Quality Improves, Dividend Increased

The bank ended the quarter with a Common Equity Tier 1 ratio of 13.3%.

Provision for credit losses totaled 1.217 billion Canadian dollars, compared with 1.398 billion Canadian dollars in the year-ago quarter.

The company also raised its quarterly dividend by 0.04 Canadian dollars to 1.14 Canadian dollars per share. The dividend will be paid on July 29, 2026, to shareholders of record as of July 7, 2026.

President and CEO Scott Thomson said the bank remains on track to meet its fiscal 2026 financial objectives and its target of achieving a return on equity above 14% in fiscal 2027.

"Our focus on evolving our business mix drove strong fee income and wealth management revenues, along with sequential Canadian commercial and small business loan growth," Thomson said.

BNS Price Action: Bank of Nova Scotia ( BNS ) shares were up 0.75% at $81.00 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.