Scotiabank’s Canadian Banking business delivered another quarter of margin expansion in the fiscal third quarter of 2026, lifting segment return on equity to 19.4% and contributing to what management described as a record quarter for the bank.
Canadian Banking earnings increased 12% year-over-year to C$1.071 billion. The business generated record revenue, supported by a fifth consecutive quarter of margin expansion and strong fee-income growth.
The segment also delivered its fourth consecutive quarter of positive operating leverage, while return on equity increased to 19.4%. The performance was partially offset by higher provisions for credit losses.
The strength was broad-based across Scotiabank. International Banking earnings increased 8% to C$766 million, Global Wealth Management delivered record earnings of C$518 million, up 23%, and Global Banking and Markets net income attributable to equity holders rose 37% year-over-year to C$647 million.
Companywide reported net income increased to C$2.953 billion from C$2.527 billion, while diluted EPS increased to C$2.27 from C$1.84. Adjusted net income reached C$2.973 billion and adjusted ROE reached 14.2%, exceeding management’s 14% medium-term return target.
Provision for credit losses was C$1.079 billion compared with C$1.041 billion a year earlier, but declined C$138 million sequentially from the second quarter.
KEY QUOTES:
“Q3 was a record quarter for the Bank, as all business lines reported strong results and we exceeded our medium-term objectives in the period.”
Scott Thomson, President and CEO of Scotiabank
