Canada’s Big Six banks wrapped up a strong second quarter, each coming in ahead of what analysts had forecast thanks to solid performance across their main businesses. Earnings were up across the board, and five of the six lifted their dividends, with CIBC as the exception. The numbers landed well despite a cloudy economic picture and trade tensions mounting ahead of negotiations for USMCA renewal. Revenue rose at a steady clip, capital markets pulled more than its weight at nearly every bank, and credit quality held firm, with most lenders putting aside less money for bad debt expense or holding it flat as they kept watch on the road ahead.

Royal Bank of Canada

RBC reported a 25% rise in second-quarter profit, beating forecasts on the strength of a sharp pickup in capital markets and smaller loan provisions. Earnings reached $5.5 billion, or $3.85 per share, up from $4.39 billion, or $3.02 per share, a year earlier. RBC reserved $912 million for potential credit losses. That marked a steep drop from the $1.4 billion it set aside a year earlier. RBC posted higher return on equity at 17.2%, above its 17% target, further evidence of its continued efforts to bolster profitability. The bank also bumped its quarterly dividend up 12 cents to $1.76 per share and laid out plans to repurchase 45 million shares, roughly 3% of current common stock.

Toronto-Dominion Bank

TD came in above expectations for the quarter, carried by strong results in its Canadian retail and capital markets arms and a lighter provision for loans at risk of default. Earnings rose to $4.17 billion, or $2.38 per share, from $3.63 billion, or $1.97 per share, a year earlier. Canadian personal and commercial banking did the heavy lifting, with profit up 15% to $1.93 billion, while the U.S. business added $960 million in adjusted net income, an 8% gain. TD set aside $1 billion against credit losses, down from $1.34 billion a year earlier. The bank is leaning on its Canadian operations for growth as it trims costs and cleans up the anti-money-laundering failures in its U.S. arm. It raised its quarterly dividend 4 cents to $1.12 per share.

Bank of Montreal

BMO beat expectations for the quarter, lifted by its capital markets division and its U.S. operations. Profit surged 34% from a year earlier to $2.6 billion, or $3.53 per share, compared with $1.96 billion, or $2.50 per share, previously. Revenue grew 10% to $9.6 billion, outpacing a 6% rise in expenses to $5.3 billion. The bank set aside $739 million for credit losses, below market expectations, including $734 million for loans the bank believes will not be repaid. Return on equity ticked up to 13% firm wide, and 8.6% in the U.S. after BMO unveiled its strategy to restore profitability in the U.S. The dividend rose 4 cents to $1.71 per share.

Bank of Nova Scotia

Scotiabank outpaced expectations for the quarter, helped by its Canadian banking division as the lender pushes to improve its returns. Profit came in at $2.6 billion, or $2.00 per share, up from $2 billion, or $1.48 per share, a year earlier. Revenue rose 8% to $9.8 billion, while expenses crept up just 2% to $5.2 billion, a result the bank tied to higher costs in staffing, technology, advertising and business development. Provisions for credit losses totaled $1.2 billion, heavier than market expectations, with $1.1 billion against loans the bank believes may not be repaid. Scotiabank set aside $1.4 billion in provisions in the same quarter last year. The bank logged an adjusted return on equity of 13.2% and stood by its aim of hitting 14% in 2027. It raised its quarterly dividend 4 cents to $1.14 per share.

Canadian Imperial Bank of Commerce

CIBC posted a 23% increase in quarterly profit, clearing expectations, with broad-based strength across all its business units. Earnings rose to $2.47 billion, or $2.53 per share, from $2.01 billion, or $2.04 per share, a year earlier. Capital markets were the front-runner, with earnings up 40% as trading and investment banking revenue climbed and the bank clawed back money it had earlier reserved for loan losses. Credit loss provisions held steady at $605 million, though the portion tied to past-due loans rose $85 million to $548 million on economic strain and seasonal swings. The bank agreed to sell its stake in CIBC Caribbean for approximately US$1.6 billion, expected to close in the first half of 2027, and plans to buy back up to 30 million shares. Its dividend held at $1.07 per share.

National Bank of Canada

National Bank rounded out the group with a strong showing, posting a steep rise in profit that beat forecasts on lighter loan loss reserves and solid results from capital markets and retail banking. Earnings reached $1.23 billion, or $3.06 per share, up from $896 million, or $2.17 per share, a year earlier. Provisions for credit losses fell to $233 million from $545 million, driven largely by a smaller $38 million reserve against performing loans. The bank is targeting about $300 million in annual savings from the integration of Canadian Western Bank. To date, National Bank has reached $215 million and expects $270 million by year end. The bank also lifted its quarterly dividend 8 cents to $1.32 per share.

 

Source:

https://www.theglobeandmail.com/business/article-canada-banks-earnings-second-quarter-results-2026/ (May 28, 2026)

 

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Published June 8, 2026.

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