Adjusted net income reached $2.695 billion and adjusted ROE improved to 13%, up from 11.8% in Q1 2025.
The Common Equity Tier 1 capital ratio moved to 13.3%, remaining well above regulatory minimums even after a $434 million after‑tax loss on closing the Davivienda transaction this quarter, following last year’s impairment charge when the assets were classified as held for sale.
Earnings rebound after Latin American hit
“2026 is off to a strong start for Scotiabank,” said Scott Thomson, president and CEO.
“The Bank delivered adjusted EPS growth of 16%, adjusted return on equity of 13%, and adjusted positive operating leverage of 4%. We saw earnings growth across all of our business lines this quarter… We are confident that we can deliver on our medium-term objectives in 2027, including a return on equity above 14% – one year ahead of our Investor Day commitments.”
When the Latin American sale was first announced, that impact looked very different. In Q1 2025, earnings fell after Scotiabank booked a $1.36 billion impairment related to the planned divestiture.