Scotiabank has outperformed analyst expectations for the first quarter, posting robust profits across all its business segments. The Bank of Nova Scotia announced these results on Tuesday, highlighting a period of significant financial strength and operational efficiency.
Financial Performance Highlights
In the three months ending January 26, 2026, Scotiabank's net income reached almost $2.3 billion, a substantial increase from $993 million in the same period a year earlier. Net earnings per share were reported at $1.73, reflecting the bank's solid profitability.
When adjusted for one-time or unusual items, the net income was approximately $2.7 billion, compared to $2.36 billion a year ago. Adjusted earnings per share stood at $2.05, surpassing analyst expectations of about $1.95 per share and exceeding the previous year's figure of $1.76.
Segment-Wise Growth Breakdown
Scotiabank's global wealth management segment demonstrated impressive performance, with adjusted earnings of $488 million, marking an 18 per cent year-over-year increase. Meanwhile, the global banking and markets segment grew by five per cent to $545 million.
The international banking segment saw earnings rise by 10 per cent to $717 million. In Canadian banking, earnings reached $960 million, up five per cent from the previous year. This growth was driven by revenue expansion and effective expense management, though it was partially offset by higher provisions for credit losses.
Key Metrics and Strategic Actions
Provisions for credit losses, which banks set aside to cover potential loan defaults, increased by $14 million to $1.18 billion in the first quarter, compared to $1.16 billion a year ago. Despite this, the bank maintained strong overall performance.
During the quarter, Scotiabank repurchased 4.9 million shares as part of its 20-million share normal course issuer bid, signaling confidence in its financial health and commitment to shareholder value.
Leadership Insights and Industry Context
Chief Executive Scott Thomson emphasized the bank's broad-based success in a release, stating, "We saw earnings growth across all of our business lines this quarter, including in Canadian Banking, where we delivered another quarter of sequential margin expansion, accelerating fee income growth and positive operating leverage."
Scotiabank is the first among Canada's Big Six banks to report quarterly earnings this week. Bank of Montreal and National Bank of Canada are scheduled to release their results on Wednesday, followed by Canadian Imperial Bank of Commerce, Royal Bank of Canada, and Toronto-Dominion Bank on Thursday.
This strong start to the earnings season underscores Scotiabank's resilience and strategic execution in a competitive banking landscape.
