Bank of Nova Scotia posts strong Q2 with EPS up 12 cents and ROE at 13.1%, but stock sees mixed investor reaction.

The Bank of Nova Scotia reported solid second-quarter results, with earnings per share rising by 12 cents and return on equity improving to 13.1%. Growth in non-interest income, especially from wealth management and capital markets, helped offset flat net interest income. The bank also saw a decline in provisions and maintained a strong CET1 ratio of 13.3%. However, concerns arose due to an increase in a single-client impaired loan. Despite a 3.6% dividend increase, the stock trades at high multiples, leading to a hold/neutral recommendation from analysts.