The Bank of Nova Scotia (BNS) Q1 2026 earnings summary

Executive summary

• Adjusted Q1 2026 net income was CAD 2.7 billion, or CAD 2.05 per share, up 16% year-over-year, with all business lines reporting earnings growth and strong capital position; reported net income was $2,299 million, up 131% year-over-year, and diluted EPS was $1.73.

• ROE was 13% (adjusted), up 120 basis points year-over-year, tracking ahead of medium-term targets, with expectations to surpass 14% ROE a year ahead of plan.

• 82% of Q1 2026 earnings derived from North America, with strategic focus on organic growth, technology and AI investments, and disciplined capital deployment including share buybacks.

Financial highlights

• Total revenue was $9,646 million, up from $9,372 million year-over-year; adjusted revenue up 11% year-over-year, with net interest income up 13% and non-interest income up 10%.

• Expenses increased 7% year-over-year (adjusted), mainly due to higher personnel and technology costs, but positive operating leverage of 4.2% was achieved; non-interest expenses were $5,299 million, down 18% reported.

• CET1 capital ratio stood at 13.3%, up 10 basis points quarter-over-quarter, after repurchasing 4.9 million shares.

• Pre-tax, pre-provision profit rose 16% year-over-year, partly offset by $1.1 billion in provisions for credit losses (PCLs), which increased slightly to $1,176 million.

Outlook and guidance

• ROE expected to expand across all business units, with Canadian Banking targeted for the largest increase; management confident in achieving ROE above 14% by 2027, one year ahead of plan.

• Impaired PCLs anticipated to remain elevated in the first half of the year, trending lower in the latter half as macro conditions improve.

• Deposit margin expansion and business mix improvements are key drivers for 2026 and 2027 performance.