Scotiabank Q1 EPS Jumps 16% and RBC Lifts Target to C$106
RBC raised its price objective on Bank of Nova Scotia to C$106 from C$97 after first-quarter adjusted EPS climbed to C$2.05 from C$1.76 and revenue grew 3% to C$9.65 billion. Analysts cited stronger Canadian credit performance and now expect lower provisions for credit losses in the second half of 2026.
1. RBC Raises Target and Improves Credit Outlook
RBC lifted its price objective on Bank of Nova Scotia shares to C$106 from C$97 and maintained a Sector Perform rating. The upgrade reflects stronger-than-expected credit performance in the Canadian Banking segment and an outlook for lower credit loss provisions in late 2026.
2. Strong First-Quarter Financial Results
For the quarter ended January 31, Scotiabank reported adjusted EPS of C$2.05, up from C$1.76 a year earlier, and total revenue of C$9.65 billion, a 3% increase. Management attributed the gains to broad-based earnings growth across all business lines and positive operating leverage.
3. Segment Performance Highlights
The Canadian Banking division posted C$960 million in earnings, a 5% rise backed by margin expansion and fee income growth. International Banking earnings climbed 7% to C$737 million, while Global Wealth Management delivered an 18% jump to C$491 million, driven by higher mutual fund fees and stronger brokerage revenue.