BNS EPS of $1.88 beat estimates of $1.73; revenue of $9.48B beat estimates of $9.31B. Scotiabank's better-than-expected 3Q results, including lower provisions than cautioned, put it on track to reach a 5-7% 2025 EPS goal. The bank expects growth in 2026, linked to efficiency progress. It signaled the potential return of operating leverage next year, yet economic caution leaves investors reserved on revenue growth, with consensus implying flat operating leverage. The Canadian unit shows improvement with efficiency potential, as international business made transition progress. Canadian net interest margin could improve slightly. Wealth and Capital Markets are robust, but could be variable ahead. The bank could have better-than-expected 2H impaired provisions at or over 2Q's 57 bps, as it delivered a 3Q ratio decline. It is cautious on provision levels as macro trends remain uncertain. All-in, this was one of the best quarters from BNS in some time.
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