The Globe and Mail reports in its Friday edition that while Bank of Nova Scotia's second quarter results were "mixed," RBC Dominion Securities analyst Darko Mihelic sees reasons for optimism. The Globe's David Leeder writes in the Eye On Equities column that Mr. Mihelic says in a note: "We view Q2/26 results as relatively in line with consensus but above our expectations excluding the 'noise.' Canadian Banking results were the most positive versus our estimates and included sequential NIM [net interest margin] improvement (asset spread pickup from loan growth & higher-priced term deposit run off). Scotiabank expects PCLs [provisions for credit losses] to moderate from H1/26 levels more gradually than previously anticipated, and guided to an impaired PCL ratio in the mid-50s for the remainder of 2026, slightly elevated versus its initial outlook." On Wednesday Scotiabank reported core cash earnings per share of $2.02, exceeding both Mr. Mihelic's $1.87 estimate and the Street's projection of $1.93. However, total PCLs of $1.21-billion topped his $1.19-billion estimate. Mr. Mihelic has reiterated his "sector perform" call, while hiking his share target to $117 from $98. Analysts on average target the shares at $110.01.