05:58 AM EDT, 05/27/2026 (MT Newswires) -- The Bank of Nova Scotia ( BNS ) was last seen up 0.01% in New York premarket trading Wednesday after kicking off the first-quarter earnings season for Canada's big banks by posting an earnings beat, supported by growth across all of its business lines, with credit losses edging lower and management saying the bank "remains on track to achieve its financial objectives for fiscal 2026", prompting it to increase the dividend.

On a reported basis, the bank posted net income of $2,632 million in Q2, up 29.5% on an annual basis from $2,032 million a year earlier. Diluted earnings per share were $2.00, compared with $1.48 in the prior-year period.

On an adjusted basis, net income rose 28% year over year to $2,652 million, from $2,072 million a year ago. Adjusted diluted earnings per share climbed to $2.02, from $1.52 last year, surpassing $1.93 estimates compiled by FactSet.

Revenue for the three months ended April 30 increased 8.1% to $9,837 million, from $9,098 million, exceeding the C$9,696.5 million consensus estimate from FactSet.

Adjusted return on equity was 13.2% compared to 10.4% a year ago.

Among other highlights, the provision for credit losses was $1,217 million compared to $1,398 million, a decrease of $181 million. The provision for credit losses ratio decreased by nine basis point to 66 basis points. The provision for credit losses on performing loans was $88 million compared to $346 million, a decrease of $258 million.

The bank said, the "provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio".

The bank also declared a dividend of $1.14 per share, an increase of $0.04 per share on the outstanding common shares This dividend is payable on July 29, 2026, to shareholders of record at the close of business on July 7, 2026.

"The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage," said Scott Thomson, CEO of Scotiabank.

"The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective 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," he added.

Shares closed up C$0.02 up at C$111.0 in Toronto on Tuesday.