Scotiabank earnings
Scotiabank's next results are expected on December 2, 2026. Watch whether the expected capital-ratio reduction of approximately 15 basis points reflects a changed capital requirement rather than new losses.
What has Scotiabank guided for fiscal 2026?
Management’s fiscal 2028 promises are a 14.0% return on equity and 7.0% annual compounded earnings-per-share growth from fiscal 2023. Return on equity measures profit earned on shareholders’ money. Common Equity Tier 1, or CET1, measures the common capital supporting risk-weighted assets, so it is a safety and growth measure rather than a profitability measure. Scotia’s medium-term CET1 target is 12.0%.
For the year ending October 2026, management expects strong earnings and revenue growth, wider margins, more fee revenue, lower expected loan losses, and modest expense growth excluding divestitures. Canadian Banking and Global Wealth Management should grow strongly, while International Banking excluding divestitures, Global Banking and Markets, and Tangerine should grow more modestly. Those differences matter because the group-wide result may conceal businesses still absorbing investment.
| Period covered | Low | High | Date given | |
|---|---|---|---|---|
| CET1 ratio target | Medium term | 12.0% | 2026-08-25 | |
| EPS growth | FY2023–FY2028 CAGR | 7.0% | 2026-08-25 | |
| Return on equity | FY2028 | 14.0% | 2026-08-25 | |
| Operating leverage | Medium term | 2026-08-25 | ||
| strong earnings growth | Year to Oct 2026 | 2025-12-02 | ||
| Strong revenue growth, excluding the impact of divestitures | Year to Oct 2026 | 2025-12-02 |
Has Scotiabank kept its return-on-equity promise?
Thomson also made a concrete promise: in December 2024, he reaffirmed a return-on-equity target of at least 14%. Return on equity measures profit against common shareholders’ capital. In the quarter ended July 31, 2026, adjusted return on equity reached 14.2%, while reported return on equity was 14.1%. Strong markets helped, Thomson acknowledged. One quarter shows progress; it does not prove that the result will survive weaker conditions.
What has Scotiabank's revenue and profit trend looked like?
Revenue rose 11.1% year over year, and diluted EPS rose 23.4%. Net interest income increased 6.8%. Canadian lending, cards, insurance, mutual funds, underwriting and advisory work all contributed, so the improvement was broader than simple loan growth.
The latest quarter was cleaner, but credit-loss charges remained above the level of a year earlier. Impaired loans continued to rise, and CET1 declined from April. The evidence supports better operations across several quarters, not an assumption that the loss cycle has ended.
| Jul 2026 | Apr 2026 | Jan 2026 | Oct 2025 | Jul 2025 | Apr 2025 | Jan 2025 | Oct 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 10,535 | 9,837 | 9,646 | 9,803 | 9,486 | 9,080 | 9,372 | 8,526 |
| Net interest income | 5,866 | 5,521 | 5,582 | 5,586 | 5,493 | 5,270 | 5,173 | 4,923 |
| Net income | 2,908 | 2,595 | 2,287 | 2,219 | 2,447 | 1,976 | 1,147 | 1,642 |
| EPS, diluted | 2.27 | 2.00 | 1.73 | 1.65 | 1.84 | 1.48 | 0.66 | 1.22 |
| Net interest margin | 2.5% | 2.5% | 2.5% | 2.4% | 2.4% | 2.3% | 2.2% | 2.2% |
| CET1 capital ratio | 13.1% | 13.3% | 13.3% | 13.2% | 13.3% | 13.2% | 12.9% | 13.1% |
What should investors watch in Scotiabank's next release?
| Jul 2026 | Apr 2026 | Jan 2026 | Oct 2025 | Jul 2025 | Apr 2025 | Jan 2025 | Oct 2024 | |
|---|---|---|---|---|---|---|---|---|
| CET1 capital ratio | 13.1% | 13.3% | 13.3% | 13.2% | 13.3% | 13.2% | 12.9% | 13.1% |
| Leverage ratio | 4.3% | 4.3% | 4.4% | 4.5% | 4.5% | 4.5% | 4.4% | 4.4% |
| Liquidity coverage ratio | 126.0% | 124.0% | 122.0% | 128.0% | 126.0% | 131.0% | 128.0% | 131.0% |