Scotiabank Q2 EPS $2.00, Net Income $2.60B and C$122 Price Target
BNS•Scotiabank posted second-quarter net income of $2.60 billion and diluted EPS of $2.00, up from $2.03 billion and $1.48 a year earlier. CIBC maintained a Neutral rating while raising its price target to C$122 and CEO Scott Thomson reaffirmed a fiscal-2027 ROE target above 14%.
1. Strong Second-Quarter Results
Scotiabank reported net income of $2.60 billion for fiscal Q2, up from $2.03 billion a year earlier, while diluted EPS rose to $2.00 from $1.48. Growth across its domestic and international segments underpinned the outperformance against analyst expectations.
2. Credit-Loss Provision Decline
The bank’s credit-loss provision declined notably, reflecting improved asset quality and confidence in borrower repayment ability. Lower provisions boosted overall profitability and underlined a healthier loan portfolio.
3. Analyst Rating and Price Target Hike
CIBC maintained its Neutral rating on Scotiabank shares but increased the 12-month price target from C$116 to C$122. The adjustment reflects the stronger-than-anticipated earnings and improved outlook for core operations.
4. Growth Outlook and ROE Goal
CEO Scott Thomson confirmed the bank is on track to meet its 2026 financial targets and is targeting a return on equity above 14% by fiscal 2027. The strategy emphasizes fee income, wealth management expansion and a recent quarterly dividend increase.
