TORONTO, ON — February 24, 2026 — Leads & Copy — Scotiabank (TSX: BNS) (NYSE: BNS) reported strong first-quarter results with net income of $2,299 million, up from $993 million in the same period last year.
Diluted earnings per share (EPS) were $1.73, compared to $0.66 a year ago. Adjusted net income for the quarter was $2,695 million, with diluted EPS at $2.05, an increase from $1.76 last year. The adjusted return on equity (ROE) was 13%, compared to 11.8% a year ago.
According to Scott Thomson, President and CEO, Scotiabank is off to a strong start in 2026, delivering adjusted EPS growth of 16%, an adjusted return on equity of 13%, and adjusted positive operating leverage of 4%. Earnings growth was reported across all business lines, including Canadian Banking, which saw sequential margin expansion, accelerated fee income growth, and positive operating leverage. The company is confident in delivering its medium-term objectives in 2027, including a return on equity above 14%, one year ahead of Investor Day commitments.
Canadian Banking reported earnings of $960 million, up 5% year-over-year, driven by strong revenue growth and disciplined expense management, offset by higher provision for credit losses. This resulted in solid positive operating leverage and a year-over-year improvement in ROE of 140 basis points to 18.1%.
International Banking generated earnings of $737 million, up 7% year-over-year, driven by margin expansion and strong positive operating leverage. Profitability improved, with ROE rising to 16% from 14.2% last year.
Global Wealth Management delivered adjusted earnings of $491 million, up 18% year-over-year, driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income across Canadian and International wealth businesses. Adjusted ROE improved to 17.9%, while assets under management grew 10% year-over-year to $436 billion.
Global Banking and Markets reported a strong start to the year, achieving earnings of $544 million, a 5% increase year-over-year. This performance was driven by strong fee-based revenue growth and robust capital markets activity, partly offset by increased provisions for credit losses and continued investments to support long-term business growth.
The Bank reported a Common Equity Tier 1 (CET1) capital ratio of 13.3%.
Canadian Banking’s net income attributable to equity holders increased by 5% year-over-year to $960 million, driven primarily by higher net interest income and non-interest income, partially offset by higher provision for credit losses. Compared to the previous quarter, net income attributable to equity holders rose by 2%, driven primarily by higher net interest income and non-interest income, partly offset by higher provision for credit losses.
International Banking saw a 10% increase in net income attributable to equity holders, reaching $717 million, driven primarily by lower non-interest expenses and provision for credit losses, as well as the positive impact of foreign currency translation. This was partly offset by higher income taxes, and lower non-interest income and net interest income. Compared to the previous quarter, net income attributable to equity holders increased by 13% due to lower non-interest expenses and provision for credit losses, as well as higher non-interest income and the positive impact of foreign currency translation, offset by lower net interest income and higher income taxes.
Global Wealth Management reported net income attributable to equity holders of $481 million, with adjusted net income attributable to equity holders at $488 million, representing an 18% increase year-over-year. The increase was primarily due to higher mutual fund fees, brokerage revenues, and net interest income across the Canadian and International wealth businesses, partly offset by higher volume-related non-interest expenses. Compared to the previous quarter, adjusted net income attributable to equity holders increased by 8%, driven primarily by higher mutual fund fees, brokerage revenues, and net interest income, partly offset by higher volume-related non-interest expenses.
Global Banking and Markets saw a 5% increase in net income attributable to equity holders, amounting to $545 million, driven primarily by higher non-interest income and net interest income, partly offset by higher non-interest expenses and higher provision for credit losses. Compared to the previous quarter, net income attributable to equity holders also increased by 5% due to higher non-interest income and net interest income, partly offset by higher non-interest expenses and higher provision for credit losses.
Other segment net loss attributable to equity holders was $416 million compared to $1,341 million last year. Included in Q1 2026 non-interest income is a loss of $423 million upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Included in Q1 2025 non-interest expenses is an impairment loss of $1,362 million related to the announced sale of these operations. Adjusted net loss attributable to equity holders was $41 million compared to $177 million last year. The lower loss was driven primarily by higher revenue, partly offset by higher non-interest expenses and taxes. The increase in revenues was driven mainly by higher net interest income related to lower funding costs, and higher revenue from associated corporations primarily related to the KeyCorp investment.
The provision for credit losses was $1,176 million compared to $1,162 million, an increase of $14 million. The provision for credit losses ratio increased by one basis point to 61 basis points.
The Bank’s CET1 capital ratio was 13.3% as at January 31, 2026, an increase of approximately 10 basis points from the prior quarter.
The Bank’s Tier 1 capital and Total capital ratio were 15.4% and 17.0%, respectively, as at January 31, 2026.
The Leverage ratio was 4.4% as at January 31, 2026.
As at January 31, 2026, the CET1, Tier 1, Total capital, and Leverage ratios were well above OSFI’s minimum capital ratios.
The TLAC and TLAC Leverage ratios were 28.6% and 8.3%, respectively, well above OSFI’s minimum requirements.
All amounts are in Canadian dollars unless otherwise noted.
Source: Scotiabank
