Bank of Montreal, Bank of Nova Scotia and Royal Bank of Canada signage, in Toronto, on Sept. 8, 2023.Andrew Lahodynskyj/The Canadian Press
Canada’s biggest banks reported their first-quarter earnings this week, covering the three months that ended Jan. 31, as as the threat of tariffs, a looming federal election and a slowing Canadian economy weigh on what otherwise would have been a stronger start to the year.
Analysts expected geopolitical tensions to boost provisions for loan defaults, which would take a chunk out of net income, and earnings to grow in the low-single-digit range on average compared with the same quarter last year. The pessimistic launch into the year also weighs on the share prices of Canadian banks, which are trending far below their U.S. peers.
During this earnings season, all six major banks – Bank of Nova Scotia, Bank of Montreal, National Bank of Canada, Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce – posted first-quarter profits that beat analysts’ estimates.
Here’s a breakdown of the big banks’ first-quarter earnings.
Bank of Nova Scotia
Bank of Nova Scotia signage in the financial district in Toronto, on Sept. 8, 2023.Andrew Lahodynskyj/The Canadian Press
- Earnings Q1 2025: $993-million ($0.66 per share)
- Earnings Q1 2024 $2.2-billion ($1.68 per share)
- Adjusted EPS: $1.76 per share
- Analysts’ expectations: $1.65 per share (adjusted)
- Dividend: $1.06 per share
Bank of Nova Scotia BNS-T posted first-quarter earnings that topped analyst expectations on lower-than-expected provisions for sour loans, even as profit slumped as the lender rejigged its international business.
Scotiabank earned $993-million or 66 cents per share in the three months that ended Jan. 31, compared with $2.2-billion or $1.68 per share in the same quarter last year.
On an adjusted basis, including impairment costs related to the sale of certain banking operations in Latin America, the bank’s profit climbed 7 per cent to $2.4-billion from a year prior, or $1.76 per share. That edged out the $1.65 per share analysts expected, according to Refinitiv.
As part of its strategic turnaround plan, Scotiabank has been reallocating capital from its businesses in Latin America to Canada and the U.S. In January, the bank announced that it is selling its operations in Colombia, Costa Rica and Panama to Colombian bank Davivienda. The sale resulted in an impairment cost of $1.4-billion, which weighed on the bank’s reported net income. The bank also completed its acquisition of a 14.9 per cent stake in U.S.-based bank KeyCorp in December.
The bank kept its quarterly dividend unchanged at $1.06 per share.
In the quarter, Scotiabank set aside $1.2-billion in provisions for credit losses – the funds banks reserve to cover loans that may default. That was slightly higher than analysts anticipated, and included $98-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.
In the same quarter last year, Scotiabank had set aside $962-millions in provisions.
Total revenue increased 11 per cent in the quarter to $9.4-billion. But expenses jumped 37 per cent to $6.5-billion, which the bank said was driven by performance expenses, as well as higher technology and personnel costs.
Bank of Montreal (BMO)
The Bank of Montreal building, in Ottawa, on June 3, 2024.Sean Kilpatrick/The Canadian Press
- Earnings Q1 2025: $2.1-billion ($2.83 per share)
- Earnings Q1 2024 $1.3-billion ($1.73 per share)
- Adjusted EPS: $3.04 per share
- Analysts’ expectations: $2.41 per share (adjusted)
- Dividend: $1.59 per share
Bank of Montreal BMO-T posted higher first-quarter profit that topped analysts’ estimates as capital markets activity surged.
BMO earned $2.1-billion or $2.83 per share in the three months that ended Jan. 31, compared with $1.3-billion or $1.73 per share in the same quarter last year.
Adjusted to exclude certain items, the bank said it earned $3.04 per share. That beat the $2.41 per share analysts expected, according to Refinitiv.
The bank kept its quarterly dividend unchanged at $1.59 per share.
In the quarter, BMO set aside $1.01-billion in provisions for credit losses. That was slightly lower than analysts anticipated, and included $859-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.
In the same quarter last year, BMO reserved $627-million in provisions.
Total revenue jumped 21 per cent in the quarter to $9.3-billion and expenses increased 1 per cent to $5.4-billion.
National Bank of Canada
A National Bank branch in Montreal, on May 30, 2016.Paul Chiasson/The Canadian Press
- Earnings Q1 2025: $997-million ($2.78 per share)
- Earnings Q1 2024 $922-million ($2.59 per share)
- Adjusted EPS: $2.93 per share
- Analysts’ expectations: $2.66 per share (adjusted)
- Dividend: $1.14 per share
National Bank of Canada NA-T reported higher first-quarter profit that beat analysts’ expectations as capital markets and wealth management activity surged amid market volatility, offsetting a jump in provisions for loan defaults.
National Bank’s net income rose 8 per cent to $997-million, or $2.78 per share, in the three months that ended Jan. 31.
Adjusted to exclude certain items, including which costs related to the acquisition of Canadian Western Bank, the bank said it earned $2.93 per share. That edged out the $2.66 per share analysts estimated, according to Refinitiv.
National Bank set aside higher provisions for credit losses. The bank reserved $254-million in provisions, higher than analysts anticipated and more than double the amount the bank allocated in the same quarter last year. This included $196-million against loans that the bank believes may not be repaid – a 33-per-cent increase from the previous year quarter.
The bank kept its quarterly dividend unchanged at $1.14 per share.
Total revenue jumped 17 per cent in the quarter to $3.18-billion. Expenses rose 14 per cent to $1.65-billion, driven by a 22-per-cent jump in variable compensation, higher salaries and benefits and technology investments.
Royal Bank of Canada (RBC)
Royal Bank of Canada signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023.Andrew Lahodynskyj/The Canadian Press
- Earnings Q1 2025: $5.1-billion ($3.54 per share)
- Adjusted EPS: $3.62 per share
- Analysts’ expectations: $3.25 per share (adjusted)
- Dividend: $1.48 per share
Royal Bank of Canada RY-T posted a jump in first-quarter profit that beat analysts’ estimates on a boost from its takeover of HSBC Bank Canada and a surge in capital markets activity.
RBC’s net income climbed 43 per cent to $5.1-billion, or $3.54 per share, in the three months that ended Jan. 31.
Adjusted to exclude certain items, including transaction and integration costs related to the lender’s acquisition of HSBC Bank Canada, the bank said it earned $3.62 per share. That topped the $3.25 per share analysts expected, according to Refinitiv.
In the second quarter of last year, RBC closed its deal to takeover HSBC Bank Canada, which was Canada’s seventh-largest lender. This year’s first quarter results include a boost from the inclusion of HSBC, which increased net income by $214-million.
The bank kept its quarterly dividend unchanged at $1.48 per share.
In the quarter, RBC set aside $1.05-billion in provisions for credit losses. That was higher than analysts anticipated, and included $985-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses. In the same quarter last year, RBC reserved $813-million in provisions.
Total revenue climbed 24 per cent in the quarter to $16.74-billion while expenses rose 11 per cent to $9.26-billion, which the bank said was driven in part by higher share-based compensation.
Toronto-Dominion Bank (TD Bank)
A person makes their way past a Toronto-Dominion Bank in the Financial District of Toronto, Monday, Aug. 14, 2023.Spencer Colby/The Canadian Press
- Earnings Q1 2025: $2.79-billion ($1.55 per share)
- Adjusted EPS: $2.02 per share
- Analysts’ expectations: $1.96 per share (adjusted)
- Dividend: $1.05 per share
Toronto-Dominion Bank TD-T posted slightly lower first-quarter profit but topped analysts’ estimates on higher capital markets and wealth management activity and lower-than-expected provisions for loan losses.
TD’s net income fell by 1 per cent to $2.79-billion, or $1.55 per share, in the three months that ended Jan. 31.
Adjusted to exclude certain items, including U.S. balance sheet restructuring, the bank said it earned $2.02 per share. That beat the $1.96 per share analysts expected.
In October, TD pleaded guilty to conspiracy to commit money laundering after a lengthy investigation by U.S. regulators and the Department of Justice. The officials levied several severe penalties and remediation requirements, including an asset cap that restricts the bank’s growth in its U.S. retail division.
The bank sold its stake in U.S.-based investment dealer Charles Schwab Corp. in February for about $20-billion, a major step in the bank’s strategic review to rejig its U.S. business.
The bank raised its quarterly dividend by 3 cents per share to $1.05.
In the quarter, TD set aside $1.21-billion in provisions for credit losses which was slightly lower than analysts anticipated. In the same quarter last year, TD set aside $1-billion in provisions.
Total revenue rose 2 per cent in the quarter to $14.05-billion and expenses were flat at $8.07-billion.
Canadian Imperial Bank of Commerce (CIBC)
Commuters use CIBC ATMs near Union Station in downtown Toronto on August 29, 2024.Sammy Kogan/The Globe and Mail
- Earnings Q1 2025: $2.17-billion ($2.19 per share)
- Earnings Q1 2024 $1.73-billion ($1.77 per share)
- Adjusted EPS: $2.20 per share
- Analysts’ expectations: $1.96 per share (adjusted)
- Dividend: $0.97 per share
Canadian Imperial Bank of Commerce CM-T reported a 26-per-cent rise in quarterly profit that was higher than analysts expected and kept a lid on provisions against losses on loans even as the threat of tariffs looms over the bank’s cross-border business.
The Toronto-based bank reported profit of $2.17-billion, or $2.19 per share, in the fiscal first quarter that ended January 31. That compared with $1.73-billion, or $1.77 per share, in the same quarter last year.
After adjusting to exclude certain costs, CIBC said it earned $2.20 per share, well ahead of the consensus estimate of $1.96 per share among analysts, as calculated by the London Stock Exchange Group.
The bank earmarked $573-million of provisions for credit losses. That was 2 per cent lower than a year ago, as delinquent loans in commercial banking and wealth management declined.
Of that total, however, the bank set aside $127-million against loans that are still being repaid, which was more than a year ago. CIBC cited “a worsening in our economic outlook including with respect to the uncertainty that tariffs could be imposed by the U.S. government.”