Bank of Nova Scotia (TSX:BNS), known as Scotiabank, is one of Canada's largest banks, offering a wide range of financial services. On May 28, 2026, analyst firm CIBC (TSX:CM) updated its stock rating for BNS, maintaining a "Neutral" grade with a "hold" action. The stock was priced at $79.16 at that time.
The CIBC update also featured a price target increase for Scotiabank, raising it to C$122.00 from C$116.00. This follows a strong second quarter where Scotiabank, along with competitors like BMO Financial Group (TSX:BMO), topped analyst expectations, as highlighted by Proactive Investors. This performance led the bank to increase its quarterly dividend.
Scotiabank reported a significant rise in its fiscal second-quarter net income to over $2.60 billion, up from $2.03 billion in the same period last year. Consequently, its diluted earnings per share (EPS), which represents the profit allocated to each share of stock, grew to $2.00 from $1.48 a year ago.
The bank’s improved earnings come from growth across its business segments and a lower credit-loss provision. This provision is money set aside for potential bad loans, so a smaller amount indicates the bank is more confident in its borrowers' ability to repay.
CEO Scott Thomson stated the bank is on track to meet its 2026 financial goals and is targeting a return on equity of over 14% for fiscal 2027. He credits this to a strategy focusing on fee income and wealth management revenues. The stock currently trades on the NYSE with a market capitalization of approximately $97.64 billion.
