Bank of Nova Scotia is set to release its fiscal third-quarter earnings before the bell on Tuesday, following a four-quarter streak of topping analyst expectations.
Analysts project earnings per share of C$2.08 on revenue of $9.97 billion, up from C$2.02 EPS and $9.84 billion revenue in the prior quarter. The stock, which closed at $87.57 on Friday, trades at a forward price-to-earnings ratio of 14.36 and remains roughly 19% higher year-to-date.
Scotiabank’s earnings estimates have gradually increased over the past two months, with revenue projections rising 0.59% and EPS estimates climbing 0.36%. In the most recent week, EPS estimates ticked up another 0.45%, though the stock pulled back alongside peers ahead of the report.
The bank’s streak of surpassing expectations began in May, when it posted C$2.02 EPS against a consensus estimate of C$1.93, a 4.66% beat. However, the gap between actual results and forecasts has been narrowing, raising questions about the sustainability of the streak.
Scotiabank has flagged elevated credit loss provisions in its international banking operations, particularly in Mexico and Chile, as a potential headwind. The bank has also emphasized AI investments and expansion in Pacific Alliance countries as key drivers of future profitability.
The earnings release will be closely watched for updates on credit quality trends and the impact of its strategic initiatives on margins and growth.
