Scotiabank Q1 Net Income Rises 8% to CAD2.9 B; Revenue CAD10.3 B Beats Estimates
Scotiabank posted Q1 FY2026 net income of CAD2.9 billion, up 8% year-over-year, on revenue of CAD10.3 billion, a 6% increase, with adjusted EPS of CAD2.25 beating estimates by CAD0.05. Provisions for credit losses fell 12% to CAD350 million and the board maintained the CAD0.95 quarterly dividend.
1. Strong Q1 Earnings Beat
Scotiabank reported net income of CAD2.9 billion for Q1 FY2026, an 8% rise from a year earlier, and delivered adjusted EPS of CAD2.25 per share, outpacing consensus by CAD0.05. This marks the bank’s fourth consecutive quarter of earnings beats, driven by diversified business lines.
2. Revenue Growth Drivers
Total revenue climbed 6% to CAD10.3 billion, led by robust contributions from wealth management, capital markets trading and strong loan growth in Canadian and Latin American operations. Fee-based businesses contributed 15% of revenue, up from 13% last year.
3. Improved Asset Quality and Provisions
Provision for credit losses declined 12% to CAD350 million, reflecting lower impairments in the energy and consumer portfolios and improved repayment trends. The net impaired loans ratio fell to 0.35%, its lowest level since Q3 FY2024.
4. Capital Position and Dividend
Scotiabank maintained a strong capital base with a common equity Tier 1 ratio of 12.6%, unchanged quarter-on-quarter. The board declared a quarterly dividend of CAD0.95 per share, signalling confidence in cash flow stability and capital generation.