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The Bank of Nova Scotia (BNS:CA) Scotiabank's 27th Annual Financials Summit September 9, 2026 9:00 AM EDT

Company Participants

Travis MacHen - CEO and Group Head of Global Banking & Markets Business
Mehmed Rizvanovic - MD & Insurance Analyst
L. Thomson - President, CEO & Director

Presentation

Travis MacHen
CEO and Group Head of Global Banking & Markets Business

All right. Perfect. Well, let's get started. I'm going to start with a little quote: "A resilient financial system is one of the cornerstones of prosperity." Those words from Mark Carney capture why gatherings like this matter the most. The banking system is simply not part of the economy. It's one of the foundations upon which economic growth, investments, innovation and opportunity are built.

Good morning, everyone. Welcome to the 27th Annual Scotiabank Financial Summit. I'm Travis Machen, CEO and Group Head of Global Banking and Markets. On behalf of our entire team, I want to thank you for joining us today, and thank you for your continued partnership and trust. We are meeting at a critical moment for our industry. AI is transforming the way we work, how we serve our clients and how we create value. At the same time, businesses and investors are navigating a very complex market volatility, geopolitical uncertainty and rapid technological change. But through all of this, 3 things continue to matter the most: trust, resilience, and innovation.

Despite the challenges, there is real reason for optimism. Canada's financial system remains very strong, and our banking sector continues to demonstrate resilience and momentum. Investor confidence reflects that strength with Canadian banks outperforming many of their global peers this year. Over the next 2 days, you'll hear from many of the industry's leading CEOs and executives. I hope these conversations challenge perspectives, generate new ideas and provide valuable insights into the opportunities ahead. Thank you for being

All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended July 31, 2026 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise noted. Our complete Third Quarter 2026 Report to Shareholders, including our unaudited interim financial statements for the period ended July 31, 2026, can also be found on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov. Supplementary Financial Information is also available, together with the Third Quarter 2026 Report to Shareholders on the Investor Relations page at www.scotiabank.com.

Third Quarter 2026 Highlights on a Reported Basis
(versus Q3 2025)

Third Quarter 2026 Highlights on an Adjusted Basis(1)
(versus Q3 2025)

Net income of $2,953 million, compared to $2,527 million    Earnings per share (diluted) of $2.27, compared to $1.84 Return on equity(2) (ROE) of 14.1%, compared to 12.2% Net income of $2,973 million, compared to $2,518 million Earnings per share (diluted) of $2.28, compared to $1.88 Return on equity of 14.2%, compared to 12.4% , /CNW/ -- The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) reported third quarter net income of $2,953 million compared to $2,527 million in the same period last year. Diluted earnings per share (EPS) were $2.27, compared to $1.84 in the same period a year ago.

Adjusted net income(1) for the third quarter was $2,973 million and adjusted diluted EPS(1) was $2.28, up from $1.88 last year. Adjusted return on equity(1) was 14.2% compared to 12.4% a year ago.

"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," said Scott Thomson, President and CEO of Scotiabank. "In particular, we exceeded our 14% return on equity target this quarter, highlighting the improvements that we have made across the bank to increase margins and fee income. I am proud of our team of Scotiabankers for their many contributions this quarter, and for their continued focus on execution to deliver on our strategy."

Canadian Banking generated earnings of $1,071 million, up 12% from the prior year, reflecting record revenue supported by a fifth consecutive quarter of margin expansion and strong fee income growth, combined with disciplined expense management, partly offset by higher provision for credit losses. The business delivered its fourth consecutive quarter of positive operating leverage and ROE improved to 19.4%.

International Banking generated earnings of $766 million, up 8% year-over-year, driven by margin expansion and improved credit quality, with positive operating leverage.

Global Wealth Management delivered a record quarter as earnings reached $518 million, up 23% year-over-year, driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income. The business also continued to generate strong retail mutual fund sales through our branches, while assets under management(2) increased 16% year-over-year to $474 billion.

Global Banking and Markets reported record earnings of $647 million, up 37% year-over-year. Results were driven by strong revenue performance in our capital markets business and record underwriting and advisory fees.

The Bank reported a Common Equity Tier 1 (CET1) capital ratio(3) of 13.1% while repurchasing 8.6 million shares in the quarter. For the year to date we have returned $6.3 billion of capital to shareholders through a combination of buybacks and dividends. 

_____________________________________________

(1)

Refer to Non-GAAP Measures section starting on page 5.

(2)

Refer to page 56 of the Management's Discussion & Analysis in the Bank's Third Quarter 2026 Report to Shareholders, available on www.sedarplus.ca, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(3)

The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline - Capital Adequacy Requirements.

Financial Highlights

Reported Results

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

(Unaudited) ($ millions)

2026

2026

2025

2026

2025

Operating results

Net interest income

$

5,866

$

5,521

$

5,493

$

16,969

$

15,936

Non-interest income

4,669

4,316

3,993

13,049

12,002

Total revenue

$

10,535

$

9,837

$

9,486

$

30,018

$

27,938

Provision for credit losses

1,079

1,217

1,041

3,472

3,601

Non-interest expenses

5,556

5,189

5,089

16,044

16,690

Income tax expense

947

799

829

2,618

2,095

Net income

$

2,953

$

2,632

$

2,527

$

7,884

$

5,552

Net income attributable to non-controlling interests in subsidiaries   

45

37

80

94

(18)

Net income attributable to equity holders of the Bank

$

2,908

$

2,595

$

2,447

$

7,790

$

5,570

Preferred shareholders and other equity instrument holders

130

127

134

389

391

Common shareholders

$

2,778

$

2,468

$

2,313

$

7,401

$

5,179

Earnings per common share (in dollars)

Basic

$

2.27

$

2.01

$

1.84

$

6.02

$

4.14

Diluted

$

2.27

$

2.00

$

1.84

$

6.00

$

4.02

Business Segment Review

Canadian Banking

Q3 2026 vs Q3 2025
Net income attributable to equity holders was $1,071 million compared to $958 million, an increase of $113 million or 12%. The increase was driven primarily by higher revenues, partly offset by higher non-interest expenses and provision for credit losses.

Q3 2026 vs Q2 2026
Net income attributable to equity holders was $1,071 million compared to $935 million, an increase of $136 million or 14%. The increase was driven primarily by higher revenues and lower provision for credit losses, partly offset by higher non-interest expenses. The increase was also due to the impact of three more days in the quarter.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net income attributable to equity holders was $2,966 million compared to $2,484 million, an increase of $482 million or 19%. The increase was driven primarily by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses.

International Banking

Q3 2026 vs Q3 2025
Net income attributable to equity holders was $725 million compared to $670 million, an increase of $55 million or 8%. The increase was driven primarily by the positive impact of foreign currency translation, lower non-interest expenses, lower provision for credit losses and lower income taxes. This was partly offset by lower revenues.

Q3 2026 vs Q2 2026
Net income attributable to equity holders was $725 million compared to $701 million, an increase of $24 million or 3%. The increase was driven primarily by higher net interest income, lower provision for credit losses and the positive impact of foreign currency translation. This was partly offset by higher non-interest expenses and higher income taxes.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net income attributable to equity holders was $2,143 million compared to $1,997 million, an increase of $146 million or 7%. The increase was driven primarily by lower non-interest expenses, lower provision for credit losses and the positive impact of foreign currency translation. This was partly offset by lower revenues and higher income taxes.

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 5). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis.

Q3 2026 vs Q3 2025
Net income attributable to equity holders was $725 million compared to $733 million, a decrease of $8 million or 1%. The decrease was driven primarily by lower revenues. This was partly offset by lower non-interest expenses, lower provision for credit losses and lower income taxes.

Q3 2026 vs Q2 2026
Net income attributable to equity holders was $725 million compared to $718 million, an increase of $7 million or 1%. The increase was driven primarily by lower provision for credit losses and higher net-interest income. This was partly offset by higher non-interest expenses, higher income taxes and lower non-interest income.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net income attributable to equity holders was $2,143 million compared to $2,101 million, an increase of $42 million or 2%. The increase was driven primarily by lower non-interest expenses and lower provision for credit losses. This was partly offset by lower revenues.

Global Wealth Management

Q3 2026 vs Q3 2025
Net income attributable to equity holders was $515 million compared to $417 million, an increase of $98 million or 23%. The increase was driven primarily by higher mutual fund fees, brokerage revenues and net interest income across the Canadian wealth business. This was partly offset by higher volume-related non-interest expenses.

Q3 2026 vs Q2 2026
Net income attributable to equity holders was $515 million compared to $474 million, an increase of $41 million or 9%. The increase was driven primarily by higher mutual fund fees, brokerage revenues and the impact of three more days in the quarter, partly offset by higher non-interest expenses.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net income attributable to equity holders was $1,470 million compared to $1,223 million, an increase of $247 million or 20%. The increase was driven primarily by higher mutual fund fees, brokerage revenues, and net interest income, partly offset by higher volume-related non-interest expenses.

Global Banking and Markets

Q3 2026 vs Q3 2025
Net income attributable to equity holders was $647 million compared to $473 million, an increase of $174 million or 37%. The increase was driven primarily by higher revenues. This was partly offset by higher non-interest expenses, higher income tax expense and higher provision for credit losses.

Q3 2026 vs Q2 2026
Net income attributable to equity holders was $647 million compared to $457 million, an increase of $190 million or 41%. The increase was driven primarily by higher revenues. This was partly offset by higher non-interest expenses, higher provision for credit losses and higher income tax expense.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net income attributable to equity holders was $1,649 million compared to $1,403 million, an increase of $246 million or 18%. The increase was driven primarily by higher revenues. This was partly offset by higher non-interest expenses, higher provision for credit losses and higher income tax expense.

Other

Q3 2026 vs Q3 2025
Net loss attributable to equity holders was $50 million compared to a loss of $71 million, an improvement of $21 million. Adjusted net loss attributable to equity holders was $42 million compared to a loss of $56 million, an improvement of $14 million. The lower loss was driven primarily by higher net interest income, partly offset by higher non-interest expenses.

Q3 2026 vs Q2 2026
Net loss attributable to equity holders was $50 million compared to income of $28 million, a decrease of $78 million. Adjusted net loss attributable to equity holders was $42 million compared to income of $35 million, a decrease of $77 million. The decrease was driven primarily by lower non-interest income, due mainly to lower investment gains.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
Net loss attributable to equity holders was $438 million compared to a loss of $1,537 million. Included in current year non-interest income is a loss of $423 million recognized upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Included in prior year non-interest expenses is an impairment loss of $1,365 million related to the announced sale of these operations. Adjusted net loss attributable to equity holders was $48 million compared to a loss of $313 million. The improvement was driven primarily by higher net interest income due to lower funding costs and higher non-interest income mainly due to higher investment gains, partly offset by higher non-interest expenses.

Credit risk

Provision for credit losses

Q3 2026 vs Q3 2025
The provision for credit losses was $1,079 million compared to $1,041 million, an increase of $38 million. The provision for credit losses ratio increased by one basis point to 56 basis points.

The provision for credit losses on performing loans was $61 million compared to $66 million, a decrease of $5 million. The provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the corporate and commercial portfolio, and portfolio growth in the Canadian and International Banking portfolios.

The provision for credit losses on impaired loans was $1,018 million compared to $975 million, an increase of $43 million. The provision for credit losses ratio on impaired loans was 52 basis points, an increase of one basis point. The increase was due primarily to higher provisions in corporate and Canadian retail portfolios.

Q3 2026 vs Q2 2026
The provision for credit losses was $1,079 million compared to $1,217 million, a decrease of $138 million. The provision for credit losses ratio decreased by 10 basis points to 56 basis points.

The provision for credit losses on performing loans was $61 million compared to $88 million, a decrease of $27 million. The provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the corporate and commercial portfolio, as well as portfolio growth in the Canadian Banking and International Banking portfolios.

The provision for credit losses on impaired loans was $1,018 million compared to $1,129 million, a decrease of $111 million. The provision for credit losses ratio on impaired loans was 52 basis points, a decrease of nine basis points. The decrease was due primarily to lower provisions in the Canadian retail and International corporate portfolios.

Year-to-date Q3 2026 vs Year-to-date Q3 2025
The provision for credit losses was $3,472 million compared to $3,601 million, a decrease of $129 million. The provision for credit losses ratio decreased by two basis points to 61 basis points.

Provision for credit losses on performing loans was $222 million compared to $510 million, a decrease of $288 million. The provision this period was driven by credit migration in the Canadian and International portfolios, as well as retail portfolio growth. This was partly offset by a more favourable macroeconomic outlook impacting the International commercial portfolio. The prior period reflected the impact of the uncertainty related to U.S. tariffs, mainly impacting Canadian Banking.

The provision for credit losses on impaired loans was $3,250 million compared to $3,091 million, an increase of $159 million. The provision for credit losses ratio on impaired loans was 57 basis points, an increase of three basis points. The increase in provision this year was due to higher formations in the Canadian Banking and corporate portfolios.

Allowance for credit losses

The total allowance for credit losses as at July 31, 2026 was $7,551 million compared to $7,344 million in the prior quarter. The allowance for credit losses ratio was 97 basis points, an increase of one basis point. The allowance for credit losses for loans was $7,329 million compared to $7,150 million in the prior quarter, an increase of $179 million. The impact of foreign currency translation increased the allowance by $117 million.

The allowance for credit losses on performing loans was higher at $4,831 million compared to $4,742 million last quarter. The allowance for performing loans ratio was 65 basis points, an increase of one basis point. The increase was due primarily to the unfavourable macroeconomic outlook impacting the corporate and commercial portfolios, as well as portfolio growth in the Canadian and International Banking portfolios. The impact of foreign currency translation increased the allowance by $60 million.

The allowance for credit losses on impaired loans was higher at $2,498 million compared to $2,408 million last quarter. The allowance for impaired loans ratio was 32 basis points, unchanged from prior quarter. The increase was due primarily to higher provisions in the corporate and International retail portfolio, as well as the impact of foreign currency translation of $57 million.

Impaired loans

Gross impaired loans as at July 31, 2026 were $7,801 million compared to $7,608 million last quarter. The increase was due primarily to the impact of foreign currency translation and new formations in the Canadian Banking and International retail portfolios. The gross impaired loan ratio increased one basis point to 100 basis points.

Net impaired loans in Canadian Banking were $1,950 million, an increase of $90 million from last quarter, due primarily to higher formations and lower allowances in retail. Net impaired loans in International Banking were $3,093 million, an increase of $14 million from the prior quarter, due primarily to retail formations, partly offset by higher commercial allowances. Net impaired loans in Global Banking and Markets were $183 million, a decrease of $4 million from the prior quarter. Net impaired loans in Global Wealth Management were $77 million, an increase of $3 million from the prior quarter. Net impaired loans as a percentage of loans and acceptances were 0.68%, remaining unchanged from the prior quarter.

Capital Ratios

The Bank's CET1 capital ratio(1) was 13.1% as at July 31, 2026, down 20 basis points from the prior quarter. This decrease reflects RWA increases from business growth and the recall of a synthetic risk transfer securitization, coupled with share repurchases, partly offset by the favourable impact of earnings less dividends.

The Bank's Tier 1 capital(1) and Total capital ratios(1) were 15.1% and 16.9% respectively, as at July 31, 2026, a decrease of 30 basis points and 10 basis points respectively from the prior quarter.

The Leverage ratio(1) was 4.3% as at July 31, 2026, unchanged from the prior quarter, primarily as higher leverage exposure was offset by higher capital.

As at July 31, 2026, the CET1, Tier 1, Total capital, and Leverage ratios were well above OSFI's minimum capital ratios. The TLAC(1) and TLAC Leverage ratios(1) were 28.6% and 8.2% respectively, well above OSFI's minimum requirements.

___________________________________________

(1)

The regulatory ratios and measures are calculated in accordance with the Office of the Superintendent of Financial Institutions (OSFI) Guidelines on Capital Adequacy Requirements, Total Loss Absorbing Capacity and Leverage Requirements.

Non-GAAP Measures 

The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP, do not have standardized meanings and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below.

Adjusted results and diluted earnings per share

The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance.

Reconciliation of reported and adjusted results

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net interest income

$

5,866

$

5,521

$

5,493

$

16,969

$

15,936

Non-interest income

4,669

4,316

3,993

13,049

12,002

Total revenue

10,535

9,837

9,486

30,018

27,938

Provision for credit losses

1,079

1,217

1,041

3,472

3,601

Non-interest expenses

5,556

5,189

5,089

16,044

16,690

Income before taxes

3,900

3,431

3,356

10,502

7,647

Income tax expense

947

799

829

2,618

2,095

Net income

$

2,953

$

2,632

$

2,527

$

7,884

$

5,552

Net income attributable to non-controlling interests in subsidiaries (NCI)

45

37

80

94

(18)

Net income attributable to equity holders

2,908

2,595

2,447

7,790

5,570

Net income attributable to preferred shareholders and other equity

instrument holders

130

127

134

389

391

Net income attributable to common shareholders

$

2,778

$

2,468

$

2,313

$

7,401

$

5,179

Adjustments

Adjusting items impacting non-interest income and total revenue (Pre-tax)   

(a) Divestitures and wind-down of operations

$

–

$

–

$

–

$

423

$

9

(b) Amortization of acquisition-related intangible assets

8

8

8

24

17

Total non-interest income and total revenue adjusting items (Pre-tax)

8

8

8

447

26

Adjusting items impacting non-interest expenses (Pre-tax)

(a) Divestitures and wind-down of operations

–

–

(23)

11

1,365

(b) Amortization of acquisition-related intangible assets

16

18

17

49

52

Total non-interest expense adjusting items (Pre-tax)

16

18

(6)

60

1,417

Total impact of adjusting items on net income before taxes

24

26

2

507

1,443

Impact of adjusting items on income tax expense

(a) Divestitures and wind-down of operations

–

–

(6)

(57)

(28)

(b) Amortization of acquisition-related intangible assets

(4)

(6)

(5)

(14)

(15)

Total impact of adjusting items on income tax expense

(4)

(6)

(11)

(71)

(43)

Total impact of adjusting items on net income

$

20

$

20

$

(9)

$

436

$

1,400

Impact of adjusting items on NCI

–

–

37

(10)

(138)

Total impact of adjusting items on net income attributable to equity

holders

$

20

$

20

$

28

$

426

$

1,262

Adjusted Results

Net interest income

$

5,866

$

5,521

$

5,493

$

16,969

$

15,936

Non-interest income

4,677

4,324

4,001

13,496

12,028

Total revenue

10,543

9,845

9,494

30,465

27,964

Provision for credit losses

1,079

1,217

1,041

3,472

3,601

Non-interest expenses

5,540

5,171

5,095

15,984

15,273

Income before taxes

3,924

3,457

3,358

11,009

9,090

Income tax expense

951

805

840

2,689

2,138

Net income

$

2,973

$

2,652

$

2,518

$

8,320

$

6,952

Net income attributable to NCI

45

37

43

104

120

Net income attributable to equity holders

2,928

2,615

2,475

8,216

6,832

Net income attributable to preferred shareholders and other equity

instrument holders

130

127

134

389

391

Net income attributable to common shareholders

$

2,798

$

2,488

$

2,341

$

7,827

$

6,441

The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted.

a)       Divestitures and wind-down of operations

In Q1 2026, the Bank recognized a loss of $434 million ($377 million after-tax) upon the completion of the sale of its banking operations in Colombia, Costa Rica and Panama. The loss primarily represents the release of cumulative foreign currency translation losses, inclusive of hedges. In the prior fiscal year, the Bank recognized a total impairment loss of $1,422 million in non-interest expense and a credit of $45 million in non-interest income (collectively $1,342 million after-tax), of which $1,362 million ($1,355 million after-tax) was recognized in Q1 2025, as the operations that were a part of this transaction were designated as held for sale. The changes subsequent to Q1 2025 represented changes in the carrying value of net assets being sold and fair value of shares received less costs to sell, as well as changes in foreign currency. For further details, please refer to Note 19 of the condensed interim consolidated financial statements in the Q3 2026 Quarterly Report to Shareholders.

In Q2 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing.

b)       Amortization of acquisition-related intangible assets

These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. The costs are recorded in non-interest expenses – depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments, and non-interest income – net income from investments in associated corporations for the Other operating segment. 

In addition to the above, the following adjustment also impacted the earnings per share calculation in Q3 2025.

c)       Foreign currency loss on redemption of Subordinated Additional Tier 1 Capital Note

In Q3 2025, the Bank redeemed all outstanding U.S. $1,250 million 4.900% Fixed Rate Resetting Perpetual Subordinated Additional Tier 1 Capital Notes (AT1 Note). The redemption resulted in a foreign currency loss of $22 million, which was recognized in retained earnings. The loss was deducted from net income attributable to common shareholders for the purposes of calculating basic and diluted earnings per share (EPS).

Reconciliation of reported and adjusted diluted earnings per share

For the three months ended

For the nine months ended

July 31

April 30

July 31

July 31

July 31

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net income attributable to common shareholders

$

2,778

$

2,468

$

2,313

$

7,401

$

5,179

Foreign currency loss on redemption of Subordinated Additional Tier 1

Capital Notes

–

–

(22)

–

(22)

Net income attributable to common shareholders used to calculate basic

earnings per common share

$

2,778

$

2,468

$

2,291

$

7,401

$

5,157

Dilutive impact of share-based payment options and others

–

–

–

(9)

(136)

Net income attributable to common shareholders (diluted)

$

2,778

$

2,468

$

2,291

$

7,392

$

5,021

Weighted average number of diluted common shares outstanding (millions)            

1,226

1,232

1,245

1,232

1,250

Diluted earnings per common share (in dollars)

$

2.27

$

2.00

$

1.84

$

6.00

$

4.02

Adjusted Results

Net income attributable to common shareholders used to calculate basic

earnings per common share

$

2,778

$

2,468

$

2,291

$

7,401

$

5,157

Impact of adjusting items on net income attributable to common

shareholders(1)

20

20

28

426

1,262

Foreign currency loss on redemption of Subordinated Additional Tier 1

 Capital Notes

–

–

22

–

22

Adjusted net income attributable to common shareholders used to

calculate adjusted basic earnings per common share

$

2,798

$

2,488

$

2,341

$

7,827

$

6,441

Dilutive impact of share-based payment options and others

–

–

8

1

3

Adjusted net income attributable to common shareholders (diluted)

$

2,798

$

2,488

$

2,349

$

7,828

$

6,444

Weighted average number of diluted common shares outstanding (millions)

1,226

1,232

1,249

1,232

1,250

Adjusted diluted earnings per common share (in dollars)

$

2.28

$

2.02

$

1.88

$

6.35

$

5.16

Impact of adjustments on diluted earnings per share (in dollars)

$

0.01

$

0.02

$

0.04

$

0.35

$

1.14

(1) Refer to table on page 6.

Reconciliation of reported and adjusted results by business line

For the three months ended July 31, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

1,071

$

766

$

518

$

647

$

(49)

$

2,953

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

41

3

–

1

45

Reported net income attributable to equity holders

1,071

725

515

647

(50)

2,908

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

130

130

Reported net income attributable to common shareholders     

$

1,071

$

725

$

515

$

647

$

(180)

$

2,778

Adjustments:

Adjusting items impacting non-interest income and

total revenue (Pre-tax)

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

8

8

Adjusting items impacting non-interest expenses (Pre-tax)

Amortization of acquisition-related intangible assets

–

7

9

–

–

16

Total non-interest expenses adjustments (Pre-tax)

–

7

9

–

–

16

Total impact of adjusting items on net income before taxes

–

7

9

–

8

24

Total impact of adjusting items on income tax expense

–

(2)

(2)

–

–

(4)

Total impact of adjusting items on net income

–

5

7

–

8

20

Impact of adjusting items on NCI

–

–

–

–

–

–

Total impact of adjusting items on net income attributable

to equity holders

–

5

7

–

8

20

Adjusted net income (loss)

$

1,071

$

771

$

525

$

647

$

(41)

$

2,973

Adjusted net income attributable to equity holders

$

1,071

$

730

$

522

$

647

$

(42)

$

2,928

Adjusted net income attributable to common shareholders

$

1,071

$

730

$

522

$

647

$

(172)

$

2,798

(1)

Refer to Business Segment Review section of the Bank's Q3 2026 Quarterly Report to Shareholders.

For the three months ended April 30, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

935

$

736

$

476

$

457

$

28

$

2,632

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

35

2

–

–

37

Reported net income attributable to equity holders

935

701

474

457

28

2,595

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

127

127

Reported net income attributable to common shareholders             

$

935

$

701

$

474

$

457

$

(99)

$

2,468

Adjustments:

Adjusting items impacting non-interest income and

total revenue (Pre-tax)

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

8

8

Adjusting items impacting non-interest expenses (Pre-tax)

Amortization of acquisition-related intangible assets

–

9

9

–

–

18

Total non-interest expenses adjustments (Pre-tax)

–

9

9

–

–

18

Total impact of adjusting items on net income before taxes

–

9

9

–

8

26

Total impact of adjusting items on income tax expense

–

(2)

(3)

–

(1)

(6)

Total impact of adjusting items on net income

–

7

6

–

7

20

Impact of adjusting items on NCI

–

–

–

–

–

–

Total impact of adjusting items on net income attributable

to equity holders

–

7

6

–

7

20

Adjusted net income (loss)

$

935

$

743

$

482

$

457

$

35

$

2,652

Adjusted net income attributable to equity holders

$

935

$

708

$

480

$

457

$

35

$

2,615

Adjusted net income attributable to common shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

(1)

Refer to Business Segment Review section of the Bank's Q3 2026 Quarterly Report to Shareholders.

For the three months ended July 31, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

958

$

711

$

420

$

473

$

(35)

$

2,527

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

41

3

–

36

80

Reported net income attributable to equity holders

958

670

417

473

(71)

2,447

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

134

134

Reported net income attributable to common shareholders             

$

958

$

670

$

417

$

473

$

(205)

$

2,313

Adjustments:

Adjusting items impacting non-interest income and

total revenue (Pre-tax)

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

8

8

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

(23)

(23)

Amortization of acquisition-related intangible assets

1

7

9

–

–

17

Total non-interest expenses adjustments (Pre-tax)

1

7

9

–

(23)

(6)

Total impact of adjusting items on net income before taxes

1

7

9

–

(15)

2

Impact of adjusting items on income tax expense

–

(2)

(2)

–

(7)

(11)

Total impact of adjusting items on net income

1

5

7

–

(22)

(9)

Impact of adjusting items on NCI

–

–

–

–

37

37

Total impact of adjusting items on net income attributable 

to equity holders

1

5

7

–

15

28

Adjusted net income (loss)

$

959

$

716

$

427

$

473

$

(57)

$

2,518

Adjusted net income attributable to equity holders

$

959

$

675

$

424

$

473

$

(56)

$

2,475

Adjusted net income attributable to common shareholders 

$

959

$

675

$

424

$

473

$

(190)

$

2,341

(1)

Refer to Business Segment Review section of the Bank's Q3 2026 Quarterly Report to Shareholders.

For the nine months ended July 31, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

2,966

$

2,239

$

1,478

$

1,648

$

(447)

$

7,884

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

96

8

(1)

(9)

94

Reported net income attributable to equity holders

2,966

2,143

1,470

1,649

(438)

7,790

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

389

389

Reported net income attributable to common shareholders     

$

2,966

$

2,143

$

1,470

$

1,649

$

(827)

$

7,401

Adjustments:

Adjusting items impacting non-interest income and

total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

423

423

Amortization of acquisition-related intangible assets

–

–

–

–

24

24

Total non-interest income adjustments (Pre-tax)

–

–

–

–

447

447

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

11

11

Amortization of acquisition-related intangible assets

–

22

27

–

–

49

Total non-interest expenses adjustments (Pre-tax)

–

22

27

–

11

60

Total impact of adjusting items on net income before taxes

–

22

27

–

458

507

Impact of adjusting items on income tax expense

–

(6)

(7)

–

(58)

(71)

Total impact of adjusting items on net income

–

16

20

–

400

436

Impact of adjusting items on NCI

–

–

–

–

(10)

(10)

Total impact of adjusting items on net income attributable

to equity holders

–

16

20

–

390

426

Adjusted net income (loss)

$

2,966

$

2,255

$

1,498

$

1,648

$

(47)

$

8,320

Adjusted net income attributable to equity holders

$

2,966

$

2,159

$

1,490

$

1,649

$

(48)

$

8,216

Adjusted net income attributable to common shareholders

$

2,966

$

2,159

$

1,490

$

1,649

$

(437)

$

7,827

(1)

Refer to Business Segment Review section of the Bank's Q3 2026 Quarterly Report to Shareholders.

For the nine months ended July 31, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

2,484

$

2,111

$

1,230

$

1,402

$

(1,675)

$

5,552

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

114

7

(1)

(138)

(18)

Reported net income attributable to equity holders

2,484

1,997

1,223

1,403

(1,537)

5,570

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

391

391

Reported net income attributable to common shareholders          

$

2,484

$

1,997

$

1,223

$

1,403

$

(1,928)

$

5,179

Adjustments:

Adjusting items impacting non-interest income and

total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

9

9

Amortization of acquisition-related intangible assets

–

–

–

–

17

17

Total non-interest income adjustments (Pre-tax)

–

–

–

–

26

26

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

1,365

1,365

Amortization of acquisition-related intangible assets

3

22

27

–

–

52

Total non-interest expenses adjustments (Pre-tax)

3

22

27

–

1,365

1,417

Total impact of adjusting items on net income before taxes

3

22

27

–

1,391

1,443

Impact of adjusting items on income tax expense

(1)

(6)

(7)

–

(29)

(43)

Total impact of adjusting items on net income

2

16

20

–

1,362

1,400

Impact of adjusting items on NCI

–

–

–

–

(138)

(138)

Total impact of adjusting items on net income attributable

to equity holders

2

16

20

–

1,224

1,262

Adjusted net income (loss)

$

2,486

$

2,127

$

1,250

$

1,402

$

(313)

$

6,952

Adjusted net income attributable to equity holders

$

2,486

$

2,013

$

1,243

$

1,403

$

(313)

$

6,832

Adjusted net income attributable to common shareholders

$

2,486

$

2,013

$

1,243

$

1,403

$

(704)

$

6,441

(1)

Refer to Business Segment Review section of the Bank's Q3 2026 Quarterly Report to Shareholders.

Reconciliation of International Banking's reported and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment.

For the three months ended

For the nine months ended

($ millions)

April 30, 2026

July 31, 2025

July 31, 2025

Foreign

Constant

Foreign

Constant

Foreign

Constant

Reported

exchange

dollar

Reported

exchange

dollar

Reported

exchange

dollar

Net interest income

$

2,094

$

(32)

$

2,126

$

2,245

$

(168)

$

2,413

$

6,593

$

(356)

$

6,949

Non-interest income

765

(15)

780

758

(76)

834

2,399

(147)

2,546

Total revenue

2,859

(47)

2,906

3,003

(244)

3,247

8,992

(503)

9,495

Provision for credit losses

599

(8)

607

562

(49)

611

1,714

(124)

1,838

Non-interest expenses

1,370

(18)

1,388

1,511

(110)

1,621

4,587

(249)

4,836

Income before taxes

890

(21)

911

930

(85)

1,015

2,691

(130)

2,821

Income tax expense

154

(4)

158

219

(20)

239

580

(27)

607

Net income

$

736

$

(17)

$

753

$

711

$

(65)

$

776

$

2,111

$

(103)

$

2,214

Net income attributable to non-controlling

interests in subsidiaries (NCI)

$

35

$

–

$

35

$

41

$

(2)

$

43

$

114

$

1

$

113

Net income attributable to equity holders of the Bank   

$

701

$

(17)

$

718

$

670

$

(63)

$

733

$

1,997

$

(104)

$

2,101

Other measures

Average assets ($ billions)

$

211

$

(3)

$

214

$

223

$

(14)

$

237

$

227

$

(10)

$

237

Average liabilities ($ billions)

$

170

$

(2)

$

172

$

173

$

(11)

$

184

$

175

$

(9)

$

184

Return on equity 

Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity for the operating segments is calculated as a ratio of adjusted net income attributable to common shareholders of the operating segment and the capital attributed. This is a non-GAAP ratio.

For the three months ended July 31, 2026

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported

Net income attributable to common shareholders                                                                                                   

$

1,071

$

725

$

515

$

647

$

(180)

$

2,778

Total average common equity(1)

21,937

18,344

10,993

16,138

10,805

78,217

Return on equity

19.4 %

15.7 %

18.6 %

15.9 %

nm(2)

14.1 %

Adjusted(3)

Net income attributable to common shareholders 

$

1,071

$

730

$

522

$

647

$

(172)

$

2,798

Return on equity

19.4 %

15.8 %

18.8 %

15.9 %

nm(2)

14.2 %

(1)

Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2)

Not meaningful.

(3)

Refer to table on page 6.

For the three months ended April 30, 2026

For the three months ended July 31, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

 Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

935

$

701

$

474

$

457

$

(99)

$

2,468

$

958

$

670

$

417

$

473

$

(205)

$

2,313

Total average

common

equity(1)

21,515

17,987

10,840

15,179

11,915

77,436

20,624

17,856

10,552

14,879

11,061

74,972

Return on equity         

17.8 %

16.0 %

17.9 %

12.4 %

nm(2)

13.1 %

18.4 %

14.9 %

15.7 %

12.6 %

nm(2)

12.2 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

$

959

$

675

$

424

$

473

$

(190)

$

2,341

Return on equity

17.8 %

16.1 %

18.2 %

12.4 %

nm(2)

13.2 %

18.5 %

15.0 %

15.9 %

12.6 %

nm(2)

12.4 %

(1)

Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2)

Not meaningful.

(3)

Refer to table on page 6.

For the nine months ended July 31, 2026

For the nine months ended July 31, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

2,966

$

2,143

$

1,470

$

1,649

$

(827)

$

7,401

$

2,484

$

1,997

$

1,223

$

1,403

$

(1,928)

$

5,179

Total average

common

equity(1)

21,514

18,057

10,881

15,483

11,817

77,752

21,053

18,044

10,356

15,071

10,000

74,524

Return on equity   

18.4 %

15.9 %

18.1 %

14.2 %

nm(2)

12.7 %

15.8 %

14.8 %

15.8 %

12.4 %

nm(2)

9.3 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

2,966

$

2,159

$

1,490

$

1,649

$

(437)

$

7,827

$

2,486

$

2,013

$

1,243

$

1,403

$

(704)

$

6,441

Return on equity

18.4 %

16.0 %

18.3 %

14.2 %

nm(2)

13.5 %

15.8 %

14.9 %

16.1 %

12.4 %

nm(2)

11.6 %

(1)

Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2)

Not meaningful.

(3)

Refer to table on page 6.

Forward-looking statements 

From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2025 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate and globally; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; geopolitical risk (including policies and other changes related to, or affecting, economic or trade matters, including tariffs, countermeasures, tariff mitigation policies and tax-related risks); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including open banking and the use of data and artificial intelligence in our business, and technology resiliency; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate-related risk, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their impact on the local, national or global economies, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2025 Annual Report, as may be updated by quarterly reports.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2026 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events. 

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov.

Shareholders Information

Dividend and Share Purchase Plan

Scotiabank's Shareholder Dividend and Share Purchase Plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent.

Website

For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com.

Conference Call and Web Broadcast

The quarterly results conference call will take place on August 25, 2026, at 8:15 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 647-557-5524, or toll-free at 1-888-440-4083 using ID 7835444# (please call shortly before 8:15 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at www.scotiabank.com/investorrelations.

Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from August 25, 2026, to September 1, 2026, by calling 647-362-9199 or toll-free at 1-800-770-2030 and entering the access code 7835444#.

Additional Information

Investors:
Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations:
     Scotiabank
     40 Temperance Street, Toronto, Ontario
     Canada M5H 0B4
     Telephone: (416) 775-0798
     E-mail: [email protected]

Global Communications:
     Scotiabank
     40 Temperance Street, Toronto, Ontario
     Canada M5H 0B4
     E-mail: [email protected]

Shareholders:
For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent:
     Computershare Trust Company of Canada
     320 Bay Street, 14th Floor
     Toronto, Ontario, Canada M5H 4A6
     Telephone: 1-877-982-8767
     E-mail: [email protected]

     Co-Transfer Agent (USA)
     Computershare Trust Company, N.A.
     Telephone: 1-781-575-2000
     E-mail: [email protected]

     Street Courier/Address:
     C/O: Shareholder Services
     150 Royall Street
     Canton, MA, USA 02021

     Mailing Address:
     PO Box 43078
     Providence, RI, USA 02940-3006

     For other shareholder enquiries, please contact the Corporate Secretary's Department:
     Scotiabank
     40 Temperance Street
     Toronto, Ontario, Canada M5H 0B4
     Telephone: (416) 866-3672
     E-mail: [email protected]

Rapport trimestriel disponible en français

Le rapport trimestriel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.

SOURCE Scotiabank

Contact Information: Meny Grauman, Scotiabank Investor Relations, [email protected]

Bank of Nova Scotia notched a rise in third-quarter earnings, driven by strong results across its business lines that included a record result from its global wealth management and global banking and markets operations.

Bank of Nova Scotia (TSX:BNS) reported record quarterly earnings, beating analyst estimates as its capital markets unit posted stronger-than-expected results amid elevated market volatility.

Adjusted earnings per share came in at $2.28, ahead of the roughly $2.10 analysts had expected. Net income rose to $2.95 billion from $2.53 billion a year earlier, while revenue of $10.54 billion also beat forecasts. Adjusted return on equity was 14.2%.

The bank cited strength across its Canadian Banking, International Banking and Global Markets divisions. Canadian Banking posted its fifth consecutive quarter of margin expansion.

Shares of Scotiabank (TSX:BNS) jumped 4.7% in Toronto and 5% in New York.

Analysts at Jefferies said the outperformance in capital markets was the standout feature of the quarter, though they cautioned the market's reaction may be overweighting the contribution from trading and advisory activity. The firm noted that International and Domestic banking results were also solid, pointing to progress on management's strategic goals, and said the results could mark the start of a potential re-rating for the stock.

Jefferies raised its price target on Scotiabank (TSX:BNS) by $2 to $119, reflecting an increase to its 2027 earnings estimate, while cautioning that the elevated capital markets revenues seen in the quarter are unlikely to be sustained at the same pace going forward.

Canadian banks are not being harmed by the effects of new U.S. tariffs that impact some of their customers, and the banks may even find new opportunities, Reuters reported Tuesday (Aug. 25). Bank of Montreal (BMO) and Bank of Nova Scotia (Scotiabank) reported earnings Tuesday that beat quarterly profit estimates, according to the report.

Scotiabank grew earnings per share 21% last quarter. BMO grew 22%. Both used the word "record." Neither was exaggerating. Scotiabank grew capital markets 37% and wealth 23%. BMO grew capital markets 45% and wealth 22%. Scotiabank raised provisions 3.7% to $1.079 billion. BMO cut provisions 9% to $722 million.

If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Bank of Nova Scotia (BNS - Free Report) . This company, which is in the Zacks Banks - Foreign industry, shows potential for another earnings beat.

When looking at the last two reports, this bank has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 2.46%, on average, in the last two quarters.

For the last reported quarter, Bank of Nova Scotia came out with earnings of $1.47 per share versus the Zacks Consensus Estimate of $1.46 per share, representing a surprise of 0.68%. For the previous quarter, the company was expected to post earnings of $1.42 per share and it actually produced earnings of $1.48 per share, delivering a surprise of 4.23%.

Price and EPS Surprise

Thanks in part to this history, there has been a favorable change in earnings estimates for Bank of Nova Scotia lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Bank of Nova Scotia currently has an Earnings ESP of +2.84%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on August 25, 2026.

Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Posted by Defense World Staff on Jul 30th, 2026

Banco Latinoamericano de Comercio Exterior (NYSE:BLX – Get Free Report) and Bank of Nova Scotia (NYSE:BNS – Get Free Report) are both finance companies, but which is the superior investment? We will compare the two companies based on the strength of their valuation, earnings, institutional ownership, analyst recommendations, profitability, dividends and risk.

Valuation & Earnings This table compares Banco Latinoamericano de Comercio Exterior and Bank of Nova Scotia”s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Banco Latinoamericano de Comercio Exterior $836.85 million 2.55 $226.88 million $6.02 9.53 Bank of Nova Scotia $52.70 billion 2.00 $5.56 billion $5.24 16.43 Bank of Nova Scotia has higher revenue and earnings than Banco Latinoamericano de Comercio Exterior. Banco Latinoamericano de Comercio Exterior is trading at a lower price-to-earnings ratio than Bank of Nova Scotia, indicating that it is currently the more affordable of the two stocks.

Insider and Institutional Ownership 19.5% of Banco Latinoamericano de Comercio Exterior shares are owned by institutional investors. Comparatively, 49.1% of Bank of Nova Scotia shares are owned by institutional investors. 0.2% of Banco Latinoamericano de Comercio Exterior shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Analyst Ratings This is a summary of current recommendations and price targets for Banco Latinoamericano de Comercio Exterior and Bank of Nova Scotia, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Banco Latinoamericano de Comercio Exterior 0 0 0 1 4.00 Bank of Nova Scotia 0 3 2 0 2.40 Bank of Nova Scotia has a consensus target price of $117.00, suggesting a potential upside of 35.92%. Given Bank of Nova Scotia’s higher possible upside, analysts clearly believe Bank of Nova Scotia is more favorable than Banco Latinoamericano de Comercio Exterior.

Risk & Volatility Banco Latinoamericano de Comercio Exterior has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Bank of Nova Scotia has a beta of 1.11, indicating that its share price is 11% more volatile than the S&P 500.

Dividends Banco Latinoamericano de Comercio Exterior pays an annual dividend of $2.75 per share and has a dividend yield of 4.8%. Bank of Nova Scotia pays an annual dividend of $3.21 per share and has a dividend yield of 3.7%. Banco Latinoamericano de Comercio Exterior pays out 45.7% of its earnings in the form of a dividend. Bank of Nova Scotia pays out 61.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Banco Latinoamericano de Comercio Exterior has increased its dividend for 2 consecutive years and Bank of Nova Scotia has increased its dividend for 14 consecutive years. Banco Latinoamericano de Comercio Exterior is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability This table compares Banco Latinoamericano de Comercio Exterior and Bank of Nova Scotia’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets Banco Latinoamericano de Comercio Exterior 27.77% 13.93% 1.80% Bank of Nova Scotia 13.38% 13.16% 0.70% Summary Banco Latinoamericano de Comercio Exterior beats Bank of Nova Scotia on 10 of the 18 factors compared between the two stocks.

About Banco Latinoamericano de Comercio Exterior (Get Free Report)

Banco Latinoamericano de Comercio Exterior, S. A., a multinational bank, primarily engages in the financing of foreign trade in Latin America and the Caribbean. The company operates in two segments, Commercial and Treasury. It offers bilateral loans; structured loans including syndicated and clubbed, such as acquisition and pre-export financing, A/B loan financing, bridge loans, and liability management; and project financing. The company also provides letter of credit comprising import and export letters of credit, and credit discounting and financing, as well as usance payable at sight; stand-by services; bank guarantees, including first demand and local guarantees; import and export documentary collection; irrevocable reimbursement undertaking; and canal tolls. In addition, it offers liquidity and investment solutions, such as time deposits, DDA accounts, Yankee certificate of deposits, and EMTN private placement services, as well as supply chain finance services. The company primarily serves financial institutions, corporations, and sovereigns and state-owned entities. Banco Latinoamericano de Comercio Exterior, S. A.was formerly known as Banco Latinoamericano de Exportaciones, S.A. and changed its name to Banco Latinoamericano de Comercio Exterior, S. A. in June 2009. The company was founded in 1975 and is headquartered in Panama City, the Republic of Panama.

About Bank of Nova Scotia (Get Free Report)

The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Wealth Management, and Global Banking and Markets segments. The company offers financial advice and solutions, and banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and retail automotive financing solutions. It also provides business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small, medium, and large businesses. In addition, it provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternatives, and institutional funds. The Bank of Nova Scotia was founded in 1832 and is headquartered in Toronto, Canada.

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Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends make up large portions of long-term returns, and in many cases, dividend contributions surpass one-third of total returns.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 16.79%. The bank is currently shelling out a dividend of $0.79 per share, with a dividend yield of 3.73%. This compares to the Banks - Foreign industry's yield of 2.8% and the S&P 500's yield of 1.36%.

Looking at dividend growth, the company's current annualized dividend of $3.21 is up 4.5% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 55%, meaning it paid out 55% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.01 per share, with earnings expected to increase 18.77% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BNS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 17.23%. The bank is currently shelling out a dividend of $0.79 per share, with a dividend yield of 3.66%. This compares to the Banks - Foreign industry's yield of 2.73% and the S&P 500's yield of 1.44%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 55%, meaning it paid out 55% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.01 per share, which represents a year-over-year growth rate of 18.77%.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. However, not all companies offer a quarterly payout.

Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. During periods of rising interest rates, income investors must be mindful that high-yielding stocks tend to struggle. With that in mind, BNS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 4.04%. The bank is paying out a dividend of $0.79 per share at the moment, with a dividend yield of 4.13% compared to the Banks - Foreign industry's yield of 2.76% and the S&P 500's yield of 1.43%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.05 per share, with earnings expected to increase 19.57% from the year ago period.

Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. That said, they can take comfort from the fact that BNS is not only an attractive dividend play, but also represents a compelling investment opportunity with a Zacks Rank of #2 (Buy).

Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Bank of Nova Scotia (BNS - Free Report) , which belongs to the Zacks Banks - Foreign industry.

This bank has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.37%.

For the last reported quarter, Bank of Nova Scotia came out with earnings of $1.48 per share versus the Zacks Consensus Estimate of $1.42 per share, representing a surprise of 4.23%. For the previous quarter, the company was expected to post earnings of $1.33 per share and it actually produced earnings of $1.39 per share, delivering a surprise of 4.51%.

Price and EPS Surprise

With this earnings history in mind, recent estimates have been moving higher for Bank of Nova Scotia. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Bank of Nova Scotia has an Earnings ESP of +2.32% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on May 27, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

All investors love getting big returns from their portfolio, whether it's through stocks, bonds, ETFs, or other types of securities. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.

Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.

Based in Toronto, Bank of Nova Scotia (BNS - Free Report) is in the Finance sector, and so far this year, shares have seen a price change of 7.79%. The bank is currently shelling out a dividend of $0.79 per share, with a dividend yield of 3.98%. This compares to the Banks - Foreign industry's yield of 2.8% and the S&P 500's yield of 1.42%.

Looking at dividend growth, the company's current annualized dividend of $3.16 is up 2.9% from last year. Over the last 5 years, Bank of Nova Scotia has increased its dividend 3 times on a year-over-year basis for an average annual increase of 2.35%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Bank of Nova Scotia's current payout ratio is 60%, meaning it paid out 60% of its trailing 12-month EPS as dividend.

Looking at this fiscal year, BNS expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $6.03 per share, with earnings expected to increase 19.17% from the year ago period.

Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. But, not every company offers a quarterly payout.

For instance, it's a rare occurrence when a tech start-up or big growth business offers its shareholders a dividend. It's more common to see larger companies with more established profits give out dividends. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, BNS is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).

All amounts are in Canadian dollars and are based on our unaudited Interim Condensed Consolidated Financial Statements for the quarter ended April 30, 2026 and related notes prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), unless otherwise noted. Our complete Second Quarter 2026 Report to Shareholders, including our unaudited interim financial statements for the period ended April 30, 2026, can also be found on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov. Supplementary Financial Information is also available, together with the Second Quarter 2026 Report to Shareholders on the Investor Relations page at www.scotiabank.com.

Second Quarter 2026 Highlights on a Reported Basis
(versus Q2 2025)

Second Quarter 2026 Highlights on an Adjusted Basis(1)
(versus Q2 2025)

Net income of $2,632 million, compared to $2,032 million Earnings per share (diluted) of $2.00, compared to $1.48 Return on equity(2) (ROE) of 13.1%, compared to 10.1% Net income of $2,652 million, compared to $2,072 million Earnings per share (diluted) of $2.02, compared to $1.52 Return on equity of 13.2%, compared to 10.4% , /CNW/ - The Bank of Nova Scotia ("Scotiabank") (TSX: BNS) (NYSE: BNS) reported second quarter net income of $2,632 million compared to $2,032 million in the same period last year. Diluted earnings per share (EPS) were $2.00, compared to $1.48 in the same period a year ago.

Adjusted net income(1) for the second quarter was $2,652 million and adjusted diluted EPS(1) was $2.02, up from $1.52 last year. Adjusted return on equity(1) was 13.2% compared to 10.4% a year ago.

"The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage," said Scott Thomson, President and CEO of Scotiabank. "The Bank remains on track to achieve its financial objectives for fiscal 2026 and its 14%+ ROE objective in fiscal 2027. Our focus on evolving our business mix drove strong fee income and wealth management revenues, along with sequential Canadian commercial and small business loan growth."

Canadian Banking generated earnings of $935 million, up 53% compared to the prior year, driven by double-digit pre-tax, pre-provision earnings(3) growth and lower performing provision for credit losses. The business grew day-to-day and savings deposits and delivered another quarter of solid positive operating leverage, in line with its strategic objectives.

International Banking generated earnings of $736 million, up 3% year-over-year, driven by continued margin expansion and positive operating leverage as the business maintains its focus on expense discipline. ROE remained stable at 16%.

Global Wealth Management delivered earnings of $476 million, up 19% year-over year driven by strong revenue growth from higher mutual fund fees, brokerage revenues, and net interest income. The business continued to deliver strong retail mutual fund sales through our branches, while assets under management(2) grew 18% year-over-year to $450 billion.

Global Banking and Markets reported earnings of $457 million, up 11% year-over-year. Results were driven by strong performance in our capital markets business, partly offset by higher expenses to support future business growth.

The Bank reported a Common Equity Tier 1 (CET1) capital ratio(4) of 13.3% and declared a dividend of $1.14, representing a 4% increase.

______________________________________

(1)

Refer to Non-GAAP Measures section starting on page 5.

(2)

Refer to page 57 of the Management's Discussion & Analysis in the Bank's Second Quarter 2026 Report to Shareholders, available on www.sedarplus.ca, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(3)

Pre-tax, pre-provision (PTPP) earnings are calculated as revenue net of non-interest expenses. This is a non-GAAP measure. PTPP earnings do not have a standardized meaning under GAAP and may not be comparable to similar measures disclosed by other financial institutions. The Bank uses PTPP earnings to assess its ability to generate earnings growth excluding the impact of credit losses and income taxes. The Bank believes that certain non-GAAP measures provide readers with a better understanding of how management assesses performance.

(4)

The regulatory capital ratios are based on Basel III requirements as determined in accordance with OSFI Guideline - Capital Adequacy Requirements.

Financial Highlights

Reported Results

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

(Unaudited) ($ millions)

2026

2026

2025

2026

2025

Operating results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,316

4,064

3,810

8,380

8,009

Total revenue

$

9,837

$

9,646

$

9,080

$

19,483

$

18,452

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,189

5,299

5,110

10,488

11,601

Income tax expense

799

872

540

1,671

1,266

Net income

$

2,632

$

2,299

$

2,032

$

4,931

$

3,025

Net income attributable to non-controlling interests in subsidiaries

37

12

56

49

(98)

Net income attributable to equity holders of the Bank

$

2,595

$

2,287

$

1,976

$

4,882

$

3,123

Preferred shareholders and other equity instrument holders

127

132

135

259

257

Common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Earnings per common share (in dollars)

Basic

$

2.01

$

1.75

$

1.48

$

3.75

$

2.30

Diluted

$

2.00

$

1.73

$

1.48

$

3.73

$

2.15

Business Segment Review

Canadian Banking

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $935 million compared to $613 million, an increase of 53%. The increase was driven primarily by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $935 million compared to $960 million, a decrease of 3%. The decrease was driven primarily by lower net interest income impacted by three fewer days in the quarter.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,895 million compared to $1,526 million, an increase of 24%. The increase was driven primarily by higher revenues and lower provision for credit losses on performing loans, partly offset by higher non-interest expenses.

International Banking

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $701 million compared to $676 million, an increase of $25 million or 4%. The increase was driven primarily by lower non-interest expenses, lower income taxes and the positive impact of foreign currency translation. This was partly offset by lower net interest income, lower non-interest income and higher provision for credit losses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $701 million compared to $717 million, a decrease of $16 million or 2%. The decrease was driven primarily by higher provision for credit losses, lower net interest income and lower non-interest income. This was partly offset by lower non-interest expenses and lower income taxes.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,418 million compared to $1,327 million, an increase of $91 million or 7%. The increase was driven primarily by lower non-interest expenses, lower provision for credit losses and the positive impact of foreign currency translation. This was partly offset by lower net interest income and lower non-interest income.  

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates, which is a non-GAAP financial measure (refer to Non-GAAP Measures starting on page 5). The Bank believes that constant dollar is useful for readers in assessing ongoing business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment. Ratios are on a reported basis.

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $701 million compared to $691 million, an increase of $10 million or 1%. The increase was driven primarily by lower non-interest expenses and lower income taxes. This was partly offset by lower net interest income, lower non-interest income and higher provision for credit losses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $701 million compared to $718 million, a decrease of $17 million or 2%. The decrease was driven primarily by lower net-interest income, lower non-interest income and higher provision for credit losses. This was partly offset by lower non-interest expenses and lower income taxes.  

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,418 million compared to $1,373 million, an increase of $45 million or 3%. The increase was driven primarily by lower non-interest expenses and lower provision for credit losses, partly offset by lower net interest income and lower non-interest income.

Global Wealth Management

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $474 million compared to $399 million, an increase of 19%. The increase was driven primarily by higher mutual fund fees, brokerage revenues and net interest income across the Canadian wealth business.  This was partly offset by higher volume-related non-interest expenses.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $474 million compared to $481 million, a decrease of 2%. The decrease was driven primarily by lower mutual fund fees and brokerage revenues due to the impact of three fewer days in the quarter, partly offset by lower non-interest expenses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $955 million compared to $806 million, an increase of 18%. The increase was driven primarily by higher mutual fund fees, brokerage revenues, and net interest income reflecting strong volume growth in deposits and loans as well as improved margins, partly offset by higher volume-related non-interest expenses.

Global Banking and Markets

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $457 million compared to $413 million, an increase of $44 million or 11%. The increase was driven primarily by higher non-interest income and higher net interest income. This was partly offset by higher non-interest expenses and the negative impact of foreign currency translation.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $457 million compared to $545 million, a decrease of $88 million or 16%. The decrease was driven primarily by lower non-interest income and lower net interest income, partly offset by lower non-interest expenses and lower provision for credit losses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net income attributable to equity holders was $1,002 million compared to $930 million, an increase of $72 million or 8%. The increase was driven primarily by higher non-interest income, higher net interest income and lower income tax expense. This was partly offset by higher non-interest expenses, higher provision for credit losses, and the negative impact of foreign currency translation.

Other

Q2 2026 vs Q2 2025

Net income attributable to equity holders was $28 million compared to a loss of $125 million, an increase of $153 million. Included in prior year non-interest expenses is an impairment loss of $26 million related to the announced sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted net income attributable to equity holders was $35 million compared to a loss of $80 million, an increase of $115 million. The increase was due primarily to higher non-interest income from investment gains and higher revenue from associated corporations primarily related to the KeyCorp investment, as well as higher net interest income due to lower funding costs.

Q2 2026 vs Q1 2026

Net income attributable to equity holders was $28 million compared to a loss of $416 million, an increase of $444 million. Included in prior quarter non-interest income is a loss of $423 million recognized upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Adjusted net income attributable to equity holders was $35 million compared to a loss of $41 million, an increase of $76 million. The increase was due primarily to higher non-interest income from investment gains and higher net interest income due to lower funding costs, partly offset by higher non-interest expenses.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

Net loss attributable to equity holders was $388 million compared to a loss of $1,466 million. Included in current year non-interest income is a loss of $423 million recognized upon the completion of the sale of the banking operations in Colombia, Costa Rica and Panama. Included in prior year non-interest expenses is an impairment loss of $1,388 million related to the announced sale of these operations. Adjusted net loss attributable to equity holders was $6 million compared to a loss of $257 million last year. The lower loss was driven primarily by higher net interest income due to lower funding costs, higher non-interest income from investment gains and higher revenue from associated corporations, primarily related to the KeyCorp investment. This was partly offset by higher non-interest expenses.

Credit risk

Provision for credit losses

Q2 2026 vs Q2 2025

The provision for credit losses was $1,217 million compared to $1,398 million, a decrease of $181 million. The provision for credit losses ratio decreased by nine basis point to 66 basis points.

The provision for credit losses on performing loans was $88 million compared to $346 million, a decrease of $258 million. The provision this quarter was due primarily to the impact of the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio. Last year, the Bank substantially increased its provision for credit losses on performing loans to reflect the uncertainty related to U.S. tariffs due to the deterioration in macroeconomic indicators, mainly impacting the Canadian retail and commercial portfolios.

The provision for credit losses on impaired loans was $1,129 million compared to $1,052 million, an increase of $77 million. The provision for credit losses ratio on impaired loans was 61 basis points, an increase of four basis points. The increase was due primarily to higher formations in Canadian Banking and in the International corporate portfolios, mainly related to one account.

Q2 2026 vs Q1 2026

The provision for credit losses was $1,217 million compared to $1,176 million, an increase of $41 million. The provision for credit losses ratio increased by five basis points to 66 basis points.

The provision for credit losses on performing loans was $88 million compared to $73 million, an increase of $15 million. The provision this quarter was due primarily to the unfavourable macroeconomic outlook impacting the Canadian Banking portfolios, as well as credit migration in the International commercial portfolio.

The provision for credit losses on impaired loans was $1,129 million compared to $1,103 million, an increase of $26 million. The provision for credit losses ratio on impaired loans was 61 basis points, an increase of three basis points. The increase was due primarily to higher formations in the International corporate portfolio.

Year-to-date Q2 2026 vs Year-to-date Q2 2025

The provision for credit losses was $2,393 million compared to $2,560 million. The provision for credit losses ratio decreased by five basis points to 63 basis points.

Provision for credit losses on performing loans was $161 million, compared to $444 million. The provision this period was driven by credit migration in the Canadian and International portfolios, as well as retail portfolio growth mainly in Chile and Mexico. This was partly offset by a more favourable macroeconomic outlook impacting the International commercial portfolio. The prior period reflected the impact of the uncertainty related to U.S. tariffs, mainly impacting Canadian Banking.

The provision for credit losses on impaired loans was $2,232 million compared to $2,116 million, an increase of $116 million. The provision for credit losses ratio on impaired loans was 59 basis points, an increase of three basis points. The increase in provision this year was due to higher formations in Canadian Banking and corporate portfolios.

Allowance for credit losses

The total allowance for credit losses as at April 30, 2026 was $7,344 million compared to $7,185 million in the prior quarter. The allowance for credit losses ratio was 96 basis points, an increase of two basis points. The allowance for credit losses for loans was $7,150 million compared to $7,002 million in the prior quarter, an increase of $148 million. The increase in allowance for impaired loans was due primarily to higher provisions in the International corporate portfolio, due mainly to one account. This was partly offset by the impact of foreign currency translation of $65 million.

The allowance for credit losses on performing loans was higher at $4,742 million compared to $4,715 million last quarter. The allowance for performing loans ratio was 64 basis points, unchanged from last quarter. The increase was due primarily to the unfavourable macroeconomic outlook in Canadian Banking portfolios, as well as credit migration in the International commercial portfolio. This was partly offset by the impact of foreign currency translation of $38 million.

The allowance for credit losses on impaired loans was higher at $2,408 million compared to $2,287 million last quarter. The allowance for impaired loans ratio was 32 basis points, an increase of two basis points. The increase was due primarily to higher provisions in the International corporate portfolio, due mainly to one account. This was partly offset by the impact of foreign currency translation of $27 million.

Impaired loans

Gross impaired loans as at April 30, 2026 were $7,608 million compared to $7,248 million last quarter.  The increase was due primarily to new formations in the International corporate portfolio, due mainly to one account, partly offset by the impact of foreign currency translation. The gross impaired loan ratio increased four basis points to 99 basis points.

Net impaired loans in Canadian Banking were $1,860 million, an increase of $100 million from last quarter, due primarily to higher commercial formations. Net impaired loans in International Banking were $3,079 million, an increase of $157 million from last quarter, due mainly to one account. Net impaired loans in Global Banking and Markets were $187 million, a decrease of $34 million from last quarter due to write-offs. Net impaired loans in Global Wealth Management were $74 million, an increase of $16 million from last quarter. Net impaired loans as a percentage of loans and acceptances increased three basis points to 0.68%.

Capital Ratios

The Bank's CET1 capital ratio(1) was 13.3% as at April 30, 2026, unchanged from the prior quarter. The favourable impact of earnings less dividends and organic reduction in RWA were largely offset by RWA increases from model and methodology updates, unfavourable changes in accumulated other comprehensive income, and share repurchases. 

The Bank's Tier 1 capital(1) and Total capital ratios(1) were 15.4% and 17% respectively, as at April 30, 2026, unchanged from the prior quarter, as both Tier 1 and Tier 2 capital, and RWA were in line with the prior quarter.

The Leverage ratio(1) was 4.3% as at April 30, 2026, a decrease of 10 basis points from prior quarter, primarily from higher leverage exposures.

As at April 30, 2026, the CET1, Tier 1, Total capital, and Leverage ratios were well above OSFI's minimum capital ratios. The TLAC(1) and TLAC Leverage ratios(1) were 28.6% and 8% respectively, well above OSFI's minimum requirements.

______________________________________

(1)

The regulatory ratios and measures are calculated in accordance with the Office of the Superintendent of Financial Institutions (OSFI) Guidelines on Capital Adequacy Requirements, Total Loss Absorbing Capacity and Leverage Requirements.

Non-GAAP Measures 

The Bank uses a number of financial measures and ratios to assess its performance, as well as the performance of its operating segments. Some of these financial measures and ratios are presented on a non-GAAP basis and are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP, do not have standardized meanings and therefore might not be comparable to similar financial measures and ratios disclosed by other issuers. The Bank believes that non-GAAP measures and ratios are useful as they provide readers with a better understanding of how management assesses performance. These non-GAAP measures and ratios are used throughout this report and defined below.

Adjusted results and diluted earnings per share

The following tables present a reconciliation of GAAP reported financial results to non-GAAP adjusted financial results. Management considers both reported and adjusted results and measures useful in assessing underlying ongoing business performance. Adjusted results and measures remove certain specified items from revenue, non-interest expenses, income taxes and non-controlling interests. Presenting results on both a reported basis and adjusted basis allows readers to assess the impact of certain items on results for the periods presented, and to better assess results and trends excluding those items that may not be reflective of ongoing business performance.

Reconciliation of reported and adjusted results

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,316

4,064

3,810

8,380

8,009

Total revenue

9,837

9,646

9,080

19,483

18,452

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,189

5,299

5,110

10,488

11,601

Income before taxes

3,431

3,171

2,572

6,602

4,291

Income tax expense

799

872

540

1,671

1,266

Net income

$

2,632

$

2,299

$

2,032

$

4,931

$

3,025

Net income attributable to non-controlling interests in subsidiaries (NCI)

37

12

56

49

(98)

Net income attributable to equity holders

2,595

2,287

1,976

4,882

3,123

Net income attributable to preferred shareholders and other equity

instrument holders

127

132

135

259

257

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Adjustments

Adjusting items impacting non-interest income and total revenue (Pre-tax)

(a) Divestitures and wind-down of operations

$

–

$

423

$

9

$

423

$

9

(b) Amortization of acquisition-related intangible assets

8

8

9

16

9

Total non-interest income and total revenue adjusting items (Pre-tax)

8

431

18

439

18

Adjusting items impacting non-interest expenses (Pre-tax)

(a) Divestitures and wind-down of operations

–

11

26

11

1,388

(b) Amortization of acquisition-related intangible assets

18

15

17

33

35

Total non-interest expense adjusting items (Pre-tax)

18

26

43

44

1,423

Total impact of adjusting items on net income before taxes

26

457

61

483

1,441

Impact of adjusting items on income tax expense

(a) Divestitures and wind-down of operations

–

(57)

(15)

(57)

(22)

(b) Amortization of acquisition-related intangible assets

(6)

(4)

(6)

(10)

(10)

Total impact of adjusting items on income tax expense

(6)

(61)

(21)

(67)

(32)

Total impact of adjusting items on net income

$

20

$

396

$

40

$

416

$

1,409

Impact of adjusting items on NCI

–

(10)

16

(10)

(175)

Total impact of adjusting items on net income attributable to equity

holders

$

20

$

386

$

56

$

406

$

1,234

Adjusted Results

Net interest income

$

5,521

$

5,582

$

5,270

$

11,103

$

10,443

Non-interest income

4,324

4,495

3,828

8,819

8,027

Total revenue

9,845

10,077

9,098

19,922

18,470

Provision for credit losses

1,217

1,176

1,398

2,393

2,560

Non-interest expenses

5,171

5,273

5,067

10,444

10,178

Income before taxes

3,457

3,628

2,633

7,085

5,732

Income tax expense

805

933

561

1,738

1,298

Net income

$

2,652

$

2,695

$

2,072

$

5,347

$

4,434

Net income attributable to NCI

37

22

40

59

77

Net income attributable to equity holders

2,615

2,673

2,032

5,288

4,357

Net income attributable to preferred shareholders and other equity

instrument holders

127

132

135

259

257

Net income attributable to common shareholders

$

2,488

$

2,541

$

1,897

$

5,029

$

4,100

The Bank's quarterly financial results were adjusted for the following items. These amounts were recorded in the Other operating segment, unless otherwise noted.

a)        Divestitures and wind-down of operations

In Q1 2026, the Bank recognized a loss of $434 million ($377 million after-tax) upon the completion of the sale of its banking operations in Colombia, Costa Rica and Panama. The loss primarily represents the release of cumulative foreign currency translation losses, inclusive of hedges. In the prior fiscal year, the Bank recognized a total impairment loss of $1,422 million in non-interest expense and a credit of $45 million in non-interest income (collectively $1,342 million after-tax), of which $1,362 million ($1,355 million after-tax) was recognized in Q1 2025, as the operations that were a part of this transaction were designated as held for sale. The changes subsequent to Q1 2025 represented changes in the carrying value of net assets being sold and fair value of shares received less costs to sell, as well as changes in foreign currency. For further details, please refer to Note 19 of the condensed interim consolidated financial statements in the Q2 2026 Quarterly Report to Shareholders.

In Q2 2025, the Bank completed the sale of CrediScotia Financiera S.A. (CrediScotia), a wholly-owned consumer finance subsidiary in Peru, to Banco Santander S.A. (Espana). The Bank recognized an additional loss of $9 million in non-interest income – other upon closing.

b)       Amortization of acquisition-related intangible assets

These costs relate to the amortization of intangible assets recognized upon the acquisition of businesses, excluding software. The costs are recorded in non-interest expenses – depreciation and amortization for the Canadian Banking, International Banking and Global Wealth Management operating segments, and non-interest income – net income from investments in associated corporations for the Other operating segment.

Reconciliation of reported and adjusted diluted earnings per share

For the three months ended

For the six months ended

April 30

January 31

April 30

April 30

April 30

($ millions)

2026

2026

2025

2026

2025

Reported Results

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Dilutive impact of share-based payment options and others

–

(9)

–

(9)

(180)

Net income attributable to common shareholders (diluted)

$

2,468

$

2,146

$

1,841

$

4,614

$

2,686

Weighted average number of diluted common shares outstanding (millions)

1,232

1,238

1,246

1,236

1,250

Diluted earnings per common share (in dollars)

$

2.00

$

1.73

$

1.48

$

3.73

$

2.15

Adjusted Results

Net income attributable to common shareholders

$

2,468

$

2,155

$

1,841

$

4,623

$

2,866

Impact of adjusting items on net income attributable to common

     shareholders(1)

20

386

56

406

1,234

Adjusted net income attributable to common shareholders

$

2,488

$

2,541

$

1,897

$

5,029

$

4,100

Dilutive impact of share-based payment options and others

–

1

1

1

(6)

Adjusted net income attributable to common shareholders (diluted)

$

2,488

$

2,542

$

1,898

$

5,030

$

4,094

Weighted average number of diluted common shares outstanding (millions)

1,232

1,238

1,250

1,236

1,250

Adjusted diluted earnings per common share (in dollars)

$

2.02

$

2.05

$

1.52

$

4.07

$

3.28

Impact of adjustments on diluted earnings per share (in dollars)

$

0.02

$

0.32

$

0.04

$

0.34

$

1.13

(1) Refer to table on page 6.

Reconciliation of reported and adjusted results by business line 

For the three months ended April 30, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

935

$

736

$

476

$

457

$

28

$

2,632

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

35

2

–

–

37

Reported net income attributable to equity holders

935

701

474

457

28

2,595

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

127

127

Reported net income attributable to common shareholders

$

935

$

701

$

474

$

457

$

(99)

$

2,468

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

8

8

Adjusting items impacting non-interest expenses (Pre-tax)

Amortization of acquisition-related intangible assets

–

9

9

–

–

18

Total non-interest expenses adjustments (Pre-tax)

–

9

9

–

–

18

Total impact of adjusting items on net income before taxes

–

9

9

–

8

26

Total impact of adjusting items on income tax expense

–

(2)

(3)

–

(1)

(6)

Total impact of adjusting items on net income

–

7

6

–

7

20

Impact of adjusting items on NCI

–

–

–

–

–

–

Total impact of adjusting items on net income attributable

to equity holders

–

7

6

–

7

20

Adjusted net income (loss)

$

935

$

743

$

482

$

457

$

35

$

2,652

Adjusted net income attributable to equity holders

$

935

$

708

$

480

$

457

$

35

$

2,615

Adjusted net income attributable to common shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the three months ended January 31, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

960

$

737

$

484

$

544

$

(426)

$

2,299

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

20

3

(1)

(10)

12

Reported net income attributable to equity holders

960

717

481

545

(416)

2,287

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

132

132

Reported net income attributable to common shareholders

$

960

$

717

$

481

$

545

$

(548)

$

2,155

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

423

423

Amortization of acquisition-related intangible assets

–

–

–

–

8

8

Total non-interest income adjustments (Pre-tax)

–

–

–

–

431

431

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

11

11

Amortization of acquisition-related intangible assets

–

6

9

–

–

15

Total non-interest expenses adjustments (Pre-tax)

–

6

9

–

11

26

Total impact of adjusting items on net income before taxes

–

6

9

–

442

457

Total impact of adjusting items on income tax expense

–

(2)

(2)

–

(57)

(61)

Total impact of adjusting items on net income

–

4

7

–

385

396

Impact of adjusting items on NCI

–

–

–

–

(10)

(10)

Total impact of adjusting items on net income attributable

to equity holders

–

4

7

–

375

386

Adjusted net income (loss)

$

960

$

741

$

491

$

544

$

(41)

$

2,695

Adjusted net income attributable to equity holders

$

960

$

721

$

488

$

545

$

(41)

$

2,673

Adjusted net income attributable to common shareholders

$

960

$

721

$

488

$

545

$

(173)

$

2,541

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the three months ended April 30, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

613

$

714

$

401

$

412

$

(108)

$

2,032

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

38

2

(1)

17

56

Reported net income attributable to equity holders

613

676

399

413

(125)

1,976

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

135

135

Reported net income attributable to common shareholders

$

613

$

676

$

399

$

413

$

(260)

$

1,841

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

9

9

Amortization of acquisition-related intangible assets

–

–

–

–

9

9

Total non-interest income adjustments (Pre-tax)

–

–

–

–

18

18

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

26

26

Amortization of acquisition-related intangible assets

1

7

9

–

–

17

Total non-interest expenses adjustments (Pre-tax)

1

7

9

–

26

43

Total impact of adjusting items on net income before taxes

1

7

9

–

44

61

Impact of adjusting items on income tax expense

(1)

(2)

(3)

–

(15)

(21)

Total impact of adjusting items on net income

–

5

6

–

29

40

Impact of adjusting items on NCI

–

–

–

–

16

16

Total impact of adjusting items on net income attributable

to equity holders

–

5

6

–

45

56

Adjusted net income (loss)

$

613

$

719

$

407

$

412

$

(79)

$

2,072

Adjusted net income attributable to equity holders

$

613

$

681

$

405

$

413

$

(80)

$

2,032

Adjusted net income attributable to common shareholders

$

613

$

681

$

405

$

413

$

(215)

$

1,897

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders

For the six months ended April 30, 2026(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

1,895

$

1,473

$

960

$

1,001

$

(398)

$

4,931

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

55

5

(1)

(10)

49

Reported net income attributable to equity holders

1,895

1,418

955

1,002

(388)

4,882

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

259

259

Reported net income attributable to common shareholders

$

1,895

$

1,418

$

955

$

1,002

$

(647)

$

4,623

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

423

423

Amortization of acquisition-related intangible assets

–

–

–

–

16

16

Total non-interest income adjustments (Pre-tax)

–

–

–

–

439

439

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

11

11

Amortization of acquisition-related intangible assets

–

15

18

–

–

33

Total non-interest expenses adjustments (Pre-tax)

–

15

18

–

11

44

Total impact of adjusting items on net income before taxes

–

15

18

–

450

483

Impact of adjusting items on income tax expense

–

(4)

(5)

–

(58)

(67)

Total impact of adjusting items on net income

–

11

13

–

392

416

Impact of adjusting items on NCI

–

–

–

–

(10)

(10)

Total impact of adjusting items on net income attributable

to equity holders

–

11

13

–

382

406

Adjusted net income (loss)

$

1,895

$

1,484

$

973

$

1,001

$

(6)

$

5,347

Adjusted net income attributable to equity holders

$

1,895

$

1,429

$

968

$

1,002

$

(6)

$

5,288

Adjusted net income attributable to common shareholders

$

1,895

$

1,429

$

968

$

1,002

$

(265)

$

5,029

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

For the six months ended April 30, 2025(1)

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported net income (loss)

$

1,526

$

1,400

$

810

$

929

$

(1,640)

$

3,025

Net income attributable to non-controlling interests in

subsidiaries (NCI)

–

73

4

(1)

(174)

(98)

Reported net income attributable to equity holders

1,526

1,327

806

930

(1,466)

3,123

Reported net income attributable to preferred

shareholders and other equity instrument holders

–

–

–

–

257

257

Reported net income attributable to common shareholders

$

1,526

$

1,327

$

806

$

930

$

(1,723)

$

2,866

Adjustments:

Adjusting items impacting non-interest income and

     total revenue (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

9

9

Amortization of acquisition-related intangible assets

–

–

–

–

9

9

Total non-interest income adjustments (Pre-tax)

–

–

–

–

18

18

Adjusting items impacting non-interest expenses (Pre-tax)

Divestitures and wind-down of operations

–

–

–

–

1,388

1,388

Amortization of acquisition-related intangible assets

2

15

18

–

–

35

Total non-interest expenses adjustments (Pre-tax)

2

15

18

–

1,388

1,423

Total impact of adjusting items on net income before taxes   

2

15

18

–

1,406

1,441

Impact of adjusting items on income tax expense

(1)

(4)

(5)

–

(22)

(32)

Total impact of adjusting items on net income

1

11

13

–

1,384

1,409

Impact of adjusting items on NCI

–

–

–

–

(175)

(175)

Total impact of adjusting items on net income attributable

to equity holders

1

11

13

–

1,209

1,234

Adjusted net income (loss)

$

1,527

$

1,411

$

823

$

929

$

(256)

$

4,434

Adjusted net income attributable to equity holders

$

1,527

$

1,338

$

819

$

930

$

(257)

$

4,357

Adjusted net income attributable to common shareholders

$

1,527

$

1,338

$

819

$

930

$

(514)

$

4,100

(1) Refer to Business Segment Review section of the Bank's Q2 2026 Quarterly Report to Shareholders.

Reconciliation of International Banking's reported and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis which is a non-GAAP measure. Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers to understand business performance without the impact of foreign currency translation and is used by management to assess the performance of the business segment.

For the three months ended

For the six months ended

($ millions)

January 31, 2026

April 30, 2025

April 30, 2025

Foreign

Constant

Foreign

Constant

Foreign

Constant

Reported

exchange

dollar

Reported

exchange

dollar

Reported

exchange

dollar

Net interest income

$

2,146

$

(7)

$

2,153

$

2,179

$

(83)

$

2,262

$

4,348

$

(193)

$

4,541

Non-interest income

815

–

815

780

(27)

807

1,641

(76)

1,717

Total revenue

2,961

(7)

2,968

2,959

(110)

3,069

5,989

(269)

6,258

Provision for credit losses

536

(3)

539

550

(29)

579

1,152

(74)

1,226

Non-interest expenses

1,460

(4)

1,464

1,523

(61)

1,584

3,076

(140)

3,216

Income before taxes

965

–

965

886

(20)

906

1,761

(55)

1,816

Income tax expense

228

1

227

172

(5)

177

361

(12)

373

Net income

$

737

$

(1)

$

738

$

714

$

(15)

$

729

$

1,400

$

(43)

$

1,443

Net income attributable to non-controlling

interests in subsidiaries (NCI)

$

20

$

–

$

20

$

38

$

–

$

38

$

73

$

3

$

70

Net income attributable to equity holders of the Bank

$

717

$

(1)

$

718

$

676

$

(15)

$

691

$

1,327

$

(46)

$

1,373

Other measures

Average assets ($ billions)

$

219

$

–

$

219

$

229

$

(6)

$

235

$

229

$

(7)

$

236

Average liabilities ($ billions)

$

172

$

–

$

172

$

177

$

(7)

$

184

$

176

$

(7)

$

183

Return on equity 

Return on equity is a profitability measure that presents the net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity is a non-GAAP ratio which represents adjusted net income attributable to common shareholders (annualized) as a percentage of average common shareholders' equity.

Adjusted return on equity for the operating segments is calculated as a ratio of adjusted net income attributable to common shareholders of the operating segment and the capital attributed. This is a non-GAAP ratio.

For the three months ended April 30, 2026

Global

Global

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Reported

Net income attributable to common shareholders

$

935

$

701

$

474

$

457

$

(99)

$

2,468

Total average common equity(1)

21,515

17,987

10,840

15,179

11,915

77,436

Return on equity

17.8 %

16.0 %

17.9 %

12.4 %

nm(2)

13.1 %

Adjusted(3)

Net income attributable to common shareholders

$

935

$

708

$

480

$

457

$

(92)

$

2,488

Return on equity

17.8 %

16.1 %

18.2 %

12.4 %

nm(2)

13.2 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to Table on page 6.

For the three months ended January 31, 2026

For the three months ended April 30, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

 Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

960

$

717

$

481

$

545

$

(548)

$

2,155

$

613

$

676

$

399

$

413

$

(260)

$

1,841

Total average

common

equity(1)

21,090

17,836

10,810

15,121

12,431

77,288

20,893

18,087

10,332

14,970

10,343

74,625

Return on equity

18.1 %

16.0 %

17.7 %

14.3 %

nm(2)

11.1 %

12.0 %

15.3 %

15.8 %

11.3 %

nm(2)

10.1 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

960

$

721

$

488

$

545

$

(173)

$

2,541

$

613

$

681

$

405

$

413

$

(215)

$

1,897

Return on equity

18.1 %

16.1 %

17.9 %

14.3 %

nm(2)

13.0 %

12.0 %

15.5 %

16.1 %

11.3 %

nm(2)

10.4 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to Table on page 6.

For the six months ended April 30, 2026

For the six months ended April 30, 2025

Global

Global

Global

Global

Canadian

International

Wealth

Banking and

Canadian

International

Wealth

Banking and

($ millions)

Banking

Banking

Management

Markets

Other

Total

Banking

Banking

Management

Markets

Other

Total

Reported

Net income

attributable

to common

shareholders

$

1,895

$

1,418

$

955

$

1,002

$

(647)

$

4,623

$

1,526

$

1,327

$

806

$

930

$

(1,723)

$

2,866

Total average

common

equity(1)

21,299

17,910

10,824

15,150

12,083

77,266

21,271

18,140

10,257

15,169

9,443

74,280

Return on equity

17.9 %

16.0 %

17.8 %

13.3 %

nm(2)

12.1 %

14.5 %

14.8 %

15.8 %

12.4 %

nm(2)

7.8 %

Adjusted(3)

Net income

attributable

to common

shareholders

$

1,895

$

1,429

$

968

$

1,002

$

(265)

$

5,029

$

1,527

$

1,338

$

819

$

930

$

(514)

$

4,100

Return on equity

17.9 %

16.1 %

18.0 %

13.3 %

nm(2)

13.1 %

14.5 %

14.9 %

16.1 %

12.4 %

nm(2)

11.1 %

(1) Average amounts calculated using methods intended to approximate the daily average balances for the period.

(2) Not meaningful.

(3) Refer to table on page 6.

Forward-looking statements

From time to time, our public communications include oral or written forward-looking statements. Statements of this type are included in this document, and may be included in other filings with Canadian securities regulators or the U.S. Securities and Exchange Commission (SEC), or in other communications. In addition, representatives of the Bank may include forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and any applicable Canadian securities legislation. Forward-looking statements may include, but are not limited to, statements made in this document, the Management's Discussion and Analysis in the Bank's 2025 Annual Report under the headings "Outlook" and in other statements regarding the Bank's objectives, strategies to achieve those objectives, the regulatory environment in which the Bank operates, anticipated financial results, and the outlook for the Bank's businesses and for the Canadian, U.S. and global economies. Such statements are typically identified by words or phrases such as "believe," "expect," "aim," "achieve," "foresee," "forecast," "anticipate," "intend," "estimate," "outlook," "seek," "schedule," "plan," "goal," "strive," "target," "project," "commit," "objective," and similar expressions of future or conditional verbs, such as "will," "may," "should," "would," "might," "can" and "could" and positive and negative variations thereof.

By their very nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties, which give rise to the possibility that our predictions, forecasts, projections, expectations or conclusions will not prove to be accurate, that our assumptions may not be correct and that our financial performance objectives, vision and strategic goals will not be achieved.

We caution readers not to place undue reliance on these statements as a number of risk factors, many of which are beyond our control and effects of which can be difficult to predict, could cause our actual results to differ materially from the expectations, targets, estimates or intentions expressed in such forward-looking statements.

The future outcomes that relate to forward-looking statements may be influenced by many factors, including but not limited to: general economic and market conditions in the countries in which we operate and globally; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; the failure of third parties to comply with their obligations to the Bank and its affiliates, including relating to the care and control of information, and other risks arising from the Bank's use of third parties; changes in monetary, fiscal, or economic policy and tax legislation and interpretation; changes in laws and regulations or in supervisory expectations or requirements, including capital, interest rate and liquidity requirements and guidance, and the effect of such changes on funding costs; geopolitical risk (including policies and other changes related to, or affecting, economic or trade matters, including tariffs, countermeasures, tariff mitigation policies and tax-related risks); changes to our credit ratings; the possible effects on our business and the global economy of war, conflicts or terrorist actions and unforeseen consequences arising from such actions; technological changes, including open banking and the use of data and artificial intelligence in our business, and technology resiliency; operational and infrastructure risks; reputational risks; the accuracy and completeness of information the Bank receives on customers and counterparties; the timely development and introduction of new products and services, and the extent to which products or services previously sold by the Bank require the Bank to incur liabilities or absorb losses not contemplated at their origination; our ability to execute our strategic plans, including the successful completion of acquisitions and dispositions, including obtaining regulatory approvals; critical accounting estimates and the effect of changes to accounting standards, rules and interpretations on these estimates; global capital markets activity; the Bank's ability to attract, develop and retain key executives; the evolution of various types of fraud or other criminal behaviour to which the Bank is exposed; anti-money laundering; disruptions or attacks (including cyberattacks) on the Bank's information technology, internet connectivity, network accessibility, or other voice or data communications systems or services, which may result in data breaches, unauthorized access to sensitive information, denial of service and potential incidents of identity theft; increased competition in the geographic and business areas in which we operate, including through internet and mobile banking and non-traditional competitors; exposure related to significant litigation and regulatory matters; environmental, social and governance risks, including climate-related risk, our ability to implement various sustainability-related initiatives (both internally and with our clients and other stakeholders) under expected time frames, and our ability to scale our sustainable-finance products and services; the occurrence of natural and unnatural catastrophic events and claims resulting from such events, including disruptions to public infrastructure, such as transportation, communications, power or water supply; inflationary pressures; global supply-chain disruptions; Canadian housing and household indebtedness; the emergence or continuation of widespread health emergencies or pandemics, including their impact on the local, national or global economies, financial market conditions and the Bank's business, results of operations, financial condition and prospects; and the Bank's anticipation of and success in managing the risks implied by the foregoing. A substantial amount of the Bank's business involves making loans or otherwise committing resources to specific companies, industries or countries. Unforeseen events affecting such borrowers, industries or countries could have a material adverse effect on the Bank's financial results, businesses, financial condition or liquidity. These and other factors may cause the Bank's actual performance to differ materially from that contemplated by forward-looking statements. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank's results, for more information, please see the "Risk Management" section of the Bank's 2025 Annual Report, as may be updated by quarterly reports.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2025 Annual Report under the headings "Outlook", as updated by quarterly reports. The "Outlook" and "2026 Priorities" sections are based on the Bank's views and the actual outcome is uncertain. Readers should consider the above-noted factors when reviewing these sections. When relying on forward-looking statements to make decisions with respect to the Bank and its securities, investors and others should carefully consider the preceding factors, other uncertainties and potential events.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank's shareholders and analysts in understanding the Bank's financial position, objectives and priorities, and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. Except as required by law, the Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf.

Additional information relating to the Bank, including the Bank's Annual Information Form, can be located on the SEDAR+ website at www.sedarplus.ca and on the EDGAR section of the SEC's website at www.sec.gov.

Shareholders Information

Dividend and Share Purchase Plan

Scotiabank's Shareholder Dividend and Share Purchase Plan allows common and preferred shareholders to purchase additional common shares by reinvesting their cash dividend without incurring brokerage or administrative fees. As well, eligible shareholders may invest up to $20,000 each fiscal year to purchase additional common shares of the Bank. All administrative costs of the plan are paid by the Bank. For more information on participation in the plan, please contact the transfer agent.

Website

For information relating to Scotiabank and its services, visit us at our website: www.scotiabank.com.

Conference Call and Web Broadcast

The quarterly results conference call will take place on May 27, 2026, at 7:15 am ET and is expected to last approximately one hour. Interested parties are invited to access the call live, in listen-only mode, by telephone at 647-557-5524, or toll-free at 1-888-440-4083 using ID 1863444# (please call shortly before 7:15 am ET). In addition, an audio webcast, with accompanying slide presentation, may be accessed via the Investor Relations page at www.scotiabank.com/investorrelations.

Following discussion of the results by Scotiabank executives, there will be a question and answer session. A telephone replay of the conference call will be available from May 27, 2026, to June 3, 2026, by calling 647-362-9199 or toll-free at 1-800-770-2030 and entering the access code 1863444#.

Additional Information

Investors:
Financial Analysts, Portfolio Managers and other Institutional Investors requiring financial information, please contact Investor Relations:
            Scotiabank
            40 Temperance Street, Toronto, Ontario
            Canada M5H 0B4
            Telephone: (416) 775-0798
            E-mail: [email protected]

Global Communications:
           Scotiabank
           40 Temperance Street, Toronto, Ontario
           Canada M5H 0B4
           E-mail: [email protected]

Shareholders:
For enquiries related to changes in share registration or address, dividend information, lost share certificates, estate transfers, or to advise of duplicate mailings, please contact the Bank's transfer agent:
            Computershare Trust Company of Canada
            320 Bay Street, 14th Floor
            Toronto, Ontario, Canada M5H 4A6
            Telephone: 1-877-982-8767
            E-mail: [email protected]

Co-Transfer Agent (USA)
Computershare Trust Company, N.A.
Telephone: 1-781-575-2000
E-mail: [email protected]

Street Courier/Address:
C/O: Shareholder Services
150 Royall Street
Canton, MA, USA 02021

Mailing Address:
PO Box 43078
Providence, RI, USA 02940-3006

For other shareholder enquiries, please contact the Corporate Secretary's Department:
Scotiabank
40 Temperance Street
Toronto, Ontario, Canada M5H 0B4
Telephone: (416) 866-3672
E-mail: [email protected]

Rapport trimestriel disponible en français

Le rapport trimestriel et les états financiers de la Banque sont publiés en français et en anglais et distribués aux actionnaires dans la version de leur choix. Si vous préférez que la documentation vous concernant vous soit adressée en français, veuillez en informer Relations avec les investisseurs, La Banque de Nouvelle-Écosse, 40, rue Temperance, Toronto (Ontario), Canada M5H 0B4, en joignant, si possible, l'étiquette d'adresse, afin que nous puissions prendre note du changement.

SOURCE Scotiabank

Contact Information: Meny Grauman, Scotiabank Investor Relations, [email protected]; Rebecca Hoang, Scotiabank Investor Relations, [email protected]