Scotiabank Posts Record Q3 Earnings, Exceeds Return on Equity Target

Scotiabank has reported record earnings for its third quarter of 2026, exceeding all of its medium-term objectives and delivering a strong return on equity.

In a conference call to discuss the bank's results, Scotiabank President and Chief Executive Officer Scott Thomson highlighted the bank's ability to hit its 14%+ return on equity target sooner than expected, aided by strong markets but also driven by strategic repositioning and improved capital allocation. The Canadian Banking segment was particularly strong, with a return on equity of 19.4%, up 160 basis points sequentially.

The bank reported record earnings per share (EPS) of CAD 2.28, up 21% year-over-year, while also delivering all-bank positive operating leverage for the tenth consecutive quarter. The Common Equity Tier 1 (CET1) ratio ended the quarter at 13.1%, after deploying 23 basis points to organic growth and repurchasing an additional 8.6 million shares in the quarter.

Over the past 12 months, Scotiabank has returned CAD 8.3 billion in capital to its shareholders through share buybacks and dividends, with a focus on deploying accumulated capital in support of Canada's economy. The bank is focused on supporting clients and maintaining strong capital ratios, despite evolving trade relationships.

The Canadian Banking segment saw significant growth, with commercial loans up 3% sequentially and credit card balances up 3% quarter-over-quarter. Loan growth improved in higher returning portfolios, while the premium mix of new card acquisitions increased to 45% versus 35% last year. On the deposit side, Scotiabank was able to retain over 90% of retail GIC maturities year-to-date.

The International Banking segment also saw improving business mix, with retail loans up approximately 5% year-over-year. The bank is continuing to optimize its allocation of capital to focus on primary relationships and has a strong capital position, with a CET1 ratio of 13.1%.

Scotiabank's Q3 results demonstrate the bank's ability to deliver strong earnings while maintaining a focus on strategic priorities and supporting clients through evolving market conditions.