Q1 2026 Bank of Nova Scotia Earnings Call Transcript
Key Points
- Bank of Nova Scotia (BNS) reported strong adjusted earnings of $2.7 billion or $2.05 per share, marking a 16% increase in earnings per share year-over-year.
- The bank's CET1 ratio was robust at 13.3%, even after repurchasing 4.9 million shares, indicating strong capital management.
- Return on equity improved to 13%, up 120 basis points year-over-year, with expectations to achieve a 14%-plus medium-term target ahead of schedule.
- Global Wealth Management delivered strong performance with net sales of $1.8 billion and a return on equity of 17.9%, up 180 basis points year-over-year.
- International Banking earnings increased by 10% year-over-year, with a return on equity of 16%, driven by solid execution and strong expense management.
- Impaired loan loss provisions remain elevated due to macroeconomic uncertainty, with a total of approximately $1.2 billion in provisions.
- The bank's PCL ratio was 49 basis points, reflecting increased net write-offs in unsecured lending, particularly in Canadian Banking retail.
- International Banking's PCL ratio was 131 basis points, with continued weakness in Chile Consumer Finance impacting performance.
- The effective tax rate increased to 25.7% from 23.8%, primarily due to lower income in lower tax jurisdictions and higher withholding taxes.
- The bank faces challenges in the Canadian mortgage portfolio, particularly with COVID-era vintages, which are concentrated in Ontario and the GTA.
Ladies and gentlemen, this conference is being recorded.
Good morning, and welcome to Scotiabank's Q1 2026 results presentation. My name is Meny Grauman, and I'm Head of Investor Relations. Presenting to you this morning are Scott Thomson, Scotiabank's President and Chief Executive Officer; Raj Viswanathan, our Chief Financial Officer; and Shannon McGinnis, our Chief Risk Officer. Following our comments, we'll be glad to take your questions.
Also present to take questions are the following Scotiabank executives: Aris Bogdaneris from Canadian Banking; Jacqui Allard from Global Wealth Management; Francisco Aristeguieta from International Banking; and Travis Machen from Global Banking and Markets.
Before we start, and on behalf of those speaking today, I will refer you to slide 2 of our presentation which contains Scotiabank's caution regarding forward-looking statements. All remarks today will be on an adjusted basis.
With that, I will now turn the
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