Scotiabank (TSX:BNS) reported strong fiscal third-quarter earnings for 2024, leading the pack among major Canadian banks that have reported so far.
The bank's Q3 earnings per share (EPS) came in at C$1.63, slightly above the previous quarter’s C$1.58, bringing the fiscal year-to-date EPS to C$4.90.
Scotiabank (TSX:BNS)’s solid performance was partly driven by a lower-than-expected tax rate, analysts at Jefferies noted while lauding the bank's ongoing progress toward its strategic goals of improving efficiency and profitability.
Scotiabank (TSX:BNS)'s management has maintained a relatively optimistic outlook on credit conditions, a stance that sets it apart from its peers, according to Jefferies.
Analysts at Jefferies are supportive of Scotiabank's strategy, acknowledging the steady progress made despite industry challenges. They noted that while the path to achieving the bank's long-term goals may be gradual, consistent quarterly execution is bringing these objectives into clearer focus.
As a result of this progress, Jefferies has raised its valuation multiple for Scotiabank, increasing the target price from C$65 to C$69.
Scotiabank shares added around 1.8% in Toronto on Tuesday.