On August 25, Bank of Nova Scotia rose 4.92% in regular trading, trading at $91.29/share, with turnover of $138 million. The surge was driven by the bank's fiscal third-quarter results that substantially exceeded analyst forecasts.

Bank of Nova Scotia reported adjusted earnings of CA$2.28 per diluted share for the quarter ended July 31, well above the FactSet consensus estimate of CA$2.10. Revenue, expressed as the sum of net interest income and total non-interest income, reached CA$10.54 billion, representing an 11.1% year-over-year increase and exceeding expectations by CA$610 million. The adjusted return on equity improved to 14.2% from 12.4% in the prior period, signaling meaningful efficiency gains.

The capital markets segment emerged as the primary driver of the earnings beat. CEO commentary highlighted that the U.S. business growth priority is centered on capital markets, while expressing optimism on Canadian fundamentals. TD Cowen analyst Mario Mendonca noted the results provide a positive signal for near-term momentum. Despite a modest decline in net interest income within international banking, overall balance sheet expansion outpaced expectations. The bank maintained its quarterly dividend at CA$1.14 per share, with CET1 ratio remaining at elevated levels, underpinning a stable capital return framework.

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