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Jan 31
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Scotiabank Q1 2026 Earnings Report
Scotiabank reported strong year-over-year earnings growth in Q1 2026, with higher net income, improved return on equity, and stable credit performance.
Key Takeaways
Scotiabank generated net income of 2299000000 and diluted EPS of 1.73 in Q1 2026, driven by broad-based earnings growth across business segments and improved return on equity, while maintaining strong capital levels.
Net income increased to 2299000000 from 993000000 year-over-year.
Diluted EPS rose to 1.73 from 0.66 last year.
Return on equity improved to 11.1% from 5.5%.
CET1 capital ratio remained strong at 13.3%.
Revenue by Segment
Forward Guidance
Management highlighted confidence in achieving medium-term objectives, including return on equity above 14% by 2027, supported by operating leverage and earnings growth momentum.
Positive Outlook
- Management targets return on equity above 14% by 2027.
- Adjusted positive operating leverage of 4%.
- Earnings growth across all business lines.
- Strong CET1 ratio at 13.3%.
- Sequential margin expansion in Canadian Banking.
Challenges Ahead
- Provision for credit losses increased year-over-year.
- Higher impaired loan formations in Canadian retail and corporate portfolios.
- Leverage ratio declined to 4.4%.
- Exposure to macroeconomic and geopolitical uncertainties.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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