Scotiabank lifts Q1 adjusted profit 14% as earnings grow across all business lines

The Bank of Nova Scotia reported on 24 February 2026 adjusted net income of C$2,695 million for its fiscal first quarter ended 31 January 2026, up 14% from C$2,362 million a year earlier. Adjusted diluted earnings per share rose 16% to C$2.05 from C$1.76, and adjusted return on equity was 13.0%, compared with 11.8%.

Reported net income was C$2,299 million, compared with C$993 million a year earlier, when results included an impairment loss of C$1,355 million related to the announced sale of banking operations in Colombia, Costa Rica and Panama. Reported diluted EPS was C$1.73, compared with C$0.66. Total revenue rose to C$9,646 million from C$9,372 million.

SEGMENT EARNINGS

Canadian Banking earned C$960 million, up 5%, with return on equity improving 140 basis points to 18.1%. International Banking earnings rose 7% to C$737 million on margin expansion, with return on equity of 16%. Global Wealth Management's adjusted earnings increased 18% to C$491 million, and assets under management grew 10% to C$436 billion. Global Banking and Markets earned C$544 million, up 5%.

“2026 is off to a strong start for Scotiabank,” said Scott Thomson, president and chief executive. “We are confident that we can deliver on our medium-term objectives in 2027, including a return on equity above 14% – one year ahead of our Investor Day commitments.”

CREDIT AND CAPITAL

The provision for credit losses was C$1,176 million, compared with C$1,162 million a year earlier. The common equity tier 1 capital ratio was 13.3% at 31 January, up about 10 basis points from the prior quarter, helped by earnings net of dividends and the sale of the Colombia, Costa Rica and Panama subsidiaries, net of the bank's investment in Davivienda Group.