Canadian banks cite AI push and stronger equity returns at summit

At Scotiabank’s 27th Annual Financials Summit, bank leaders described an industry navigating artificial intelligence, market volatility, geopolitical uncertainty and rapid technological change. Executives emphasized modernization, efficiency, organic growth and disciplined capital deployment, while expressing little interest in large-scale mergers and acquisitions. Banks reported improving returns on equity, strong capital ratios and better credit performance, attributing gains to business diversification, tighter underwriting, cost restructuring and productivity investments. Growth priorities include expanding U.S. commercial banking and wealth management, strengthening Canadian retail and mass-affluent relationships, investing in digital platforms and using AI to improve employee and advisor effectiveness. Despite trade tensions and risks in sectors such as transportation, real estate and utilities, executives said balance sheets remain resilient and that excess capital can support client growth, selective acquisitions, share buybacks and other shareholder returns.