Scotiabank Boosts Dividend Payout as Earnings Climb in 2Q

By Robb M. Stewart

Bank of Nova Scotia bumped up its dividend as it logged a lift in quarterly profit on the back of a lower credit-loss provision and growth across its segments, including a jump in Canadian banking earnings and strength in global wealth management.

The lender's fiscal second-quarter net income increased to 2.63 billion Canadian dollars (US$1.91 billion), or C$2 a share, from C$2.03 billion, or C$1.48 a share, a year earlier. On an adjusted basis that strips out certain items, the Canadian bank reported earnings of C$2.02 a share, beating the C$1.93 mean forecast of analysts polled by FactSet.

Overall revenue increased 8.3% to C$9.84 billion for the for the three months to April 30, whereas analysts expected C$9.7 billion.

Net interest income was 4.8% higher at C$5.52 billion, while noninterest revenue grew 13% to C$4.32 billion.

Provisions in the second quarter for credit losses, money set aside to cover the risk of soured loans, totaled C$1.22 billion, down from C$1.4 billion a year earlier but up C$41 million from the prior quarter and ahead of the C$1.12 billion that was expected.

The bank, one of the largest in North America by assets, will lift its quarterly dividend by C$0.04 to C$1.14 a share.

Its common equity tier capital 1 ratio stood at 13.3% at the end of the quarter. The country's big banks are sitting on sizable capital buffers, comfortably above the CET1 ratio of at least 11.5% of risk-weighted assets required by the country's banking regulator.

Scotiabank said it expects to hit its financial targets for the fiscal year and that it is on track for a return on equity of 14%-plus the following year.

Write to Robb M. Stewart at robb.stewart@wsj.com

Corrections & Amplifications

This was corrected at 12:37 p.m. ET because the original version incorrectly stated the Bank of Nova Scotia second-quarter provisions as the fourth quarter.

(END) Dow Jones Newswires

May 27, 2026 06:43 ET (10:43 GMT)