Canada's Scotiabank Q1 adjusted net income beats expectations on growth across business lines

Bank of Nova Scotia

24/02/2026 11:25

Overview

Canada bank's Q1 adjusted net income beat analyst expectations

Adjusted EPS for Q1 grew 16% yr/yr

Company reported strong adjusted ROE of 13%

Outlook

Scotiabank aims for ROE above 14% by 2027

Company sees positive operating leverage in Canadian Banking

Scotiabank expects continued earnings growth across business lines

Result Drivers

CANADIAN BANKING - Earnings increased 5% driven by revenue growth and disciplined expense management, partly offset by higher credit loss provisions

INTERNATIONAL BANKING - Earnings rose 7% due to margin expansion and strong positive operating leverage

GLOBAL WEALTH MANAGEMENT - Adjusted earnings increased 18% driven by higher mutual fund fees, brokerage revenues, and net interest income

Company press release: ID:nCNWhkXq5a

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$9.65 bln
Q1 EPS
C$1.73
Q1 Adjusted Net Income
Beat
C$2.70 bln
C$2.42 bln (11 Analysts)
Q1 Net Income
C$2.30 bln
Q1 Net Interest Income
C$5.58 bln
Q1 Adjusted ROE
13.00%
Q1 CET1 Capital Ratio
13.30%
Q1 Provision for credit losses
C$1.18 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 8 "hold" and 2 "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy."

Wall Street's median 12-month price target for Bank of Nova Scotia is C$107.00, about 2.9% above its February 23 closing price of C$104.01

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)