Bank of Nova Scotia (BNS) Soars 8.97% on Strong Q3 Earnings, Hits 2025 High

The Bank of Nova Scotia (BNS) rose to its highest level since August 2025 today, with an intraday gain of 0.48%. The stock has climbed 8.97% over the past four consecutive trading days, extending its winning streak to four sessions.

The bank reported robust third-quarter earnings, with adjusted earnings per share rising 15% year-over-year and revenue increasing by 13.4% to C$9.49 billion, exceeding analyst expectations. Strong performance in global banking and wealth management divisions drove the results, though adjusted return on equity remained below its medium-term target of 12%.

Analysts have upgraded their outlook, citing strong capital returns and strategic initiatives in high-growth markets. Technical indicators, including a MACD Golden Cross and expanding Bollinger Bands, suggest a bullish trend. Institutional activity and a balanced dividend strategy—maintaining a 45% payout ratio—have further reinforced investor confidence.

BNS’s performance is closely tied to Canada’s economic health and global financial trends. Stronger-than-expected GDP growth in Canada could boost lending and fee income, while accommodative monetary policies in emerging markets may enhance international profitability. However, the bank faces challenges, including a return on equity shortfall and a strategic shift toward developed markets, which may temper short-term growth expectations.

Despite these challenges, BNS’s 13.3% CET1 capital ratio provides a buffer against economic uncertainties, supporting its credit rating and long-term stability. The stock’s resilience in volatile markets, coupled with disciplined risk management, positions it as a key player in the financial sector, balancing growth and shareholder returns in a low-interest-rate environment.