Canada’s Big Six banks began releasing third-quarter fiscal 2026 results on August 25, with Bank of Nova Scotia and Bank of Montreal posting strong gains that exceeded analyst expectations.
Bank of Nova Scotia reported adjusted earnings per share of CAD 2.28, up 9.6% above estimates, while revenue rose 12% year-over-year to CAD 10.54 billion. Adjusted net income increased 17% to CAD 2.95 billion, and return on equity reached 14.2%, ahead of its target. The bank’s CET1 capital ratio stood at 13.1%, with provisions for credit losses declining to 52 basis points. Global banking and markets revenue climbed 32%, and global wealth management assets under management grew 16% to CAD 474 billion. Scotiabank repurchased 8.6 million shares for CAD 1 billion and returned a total of CAD 2.4 billion to shareholders, including CAD 1.4 billion in dividends. Shares rose 4.56% to CAD 125.78 following the release.
Bank of Montreal also beat forecasts, posting adjusted EPS of CAD 3.96, 5.9% above estimates, with revenue up 11% to CAD 9.96 billion. Adjusted net income surged 22% to CAD 2.9 billion, while return on equity reached 14.0%. The bank’s CET1 ratio was 13.0%, and capital markets net income jumped 45%–46%. Provisions for credit losses fell to CAD 722 million from CAD 739 million in the prior quarter. BMO announced a new share buyback program of up to 25 million shares starting in September 2026 and raised its quarterly dividend by 5% to CAD 1.71 per share.
The earnings announcements followed the U.S. imposition of a 50% tariff on CAD 20 billion of Canadian goods on August 22, 2026, with Canada planning retaliatory measures. Analysts noted the resilience in Canadian bank profitability despite trade tensions, with Scotiabank’s CEO Scott Thomson stating that the bank does not view 14% ROE as a ceiling.
