BMO earned $1.96-billion in the three months that ended April 30, compared with $1.87-billion in the same quarter last year.Spencer Colby/The Canadian Press
Canada’s biggest banks reported their earnings for the fiscal second quarter, covering the three months that ended April 30.
Analysts expected Canada’s banks to continue grappling with higher loan loss reserves and lower borrowing activity as U.S. President Donald Trump’s trade war threatens a deeper economic downturn. The banks have been setting aside more money for loans that could default, but investors will be looking for clues on how well they are managing rising financial stress among consumers and businesses, and the direction they expect the economy to take in the latter half of the year.
Over the past week, Toronto-Dominion Bank, Bank of Montreal and National Bank of Canada and Canadian Imperial Bank of Commerce posted results that beat analyst estimates. Bank of Nova Scotia and Royal Bank of Canada missed expectations.
Here’s a breakdown of the big banks’ second-quarter earnings so far.
Toronto-Dominion Bank (TD Bank)
TD Bank is reducing its work force by 2 per cent as part of a cost-cutting plan, while it fixes gaps in its anti-money-laundering processes.Isabella Falsetti/The Globe and Mail
- Earnings Q2 2025: $11.1-billion ($6.27 per share)
- Earnings Q2 2024 $2.6-billion ($1.35 per share)
- Adjusted EPS: $1.97 per share
- Analysts’ expectations: $1.78 per share (adjusted)
- Dividend: $1.05 per share
Toronto-Dominion Bank TD-T reported second-quarter profits that topped analysts’ estimates, as the lender earmarked fewer provisions for bad loans than expected.
In the quarter, TD set aside $1.34-billion in provisions for credit losses (PCLs) – the funds banks set aside to cover souring loans. That was lower than analysts anticipated, and included $395-million against loans that are still being repaid – also known as performing loans – based on models that use economic forecasting to predict future losses.
Over all, TD increased its provisions from $1.07-billion in the same quarter last year. The bank bolstered its performing loan-loss provisions as a buffer against a deteriorating economy even as provisions for impaired loans – debt that is unlikely to be repaid – edged lower.
TD is also reducing its work force by 2 per cent as part of a cost-cutting plan while the lender fixes gaps in its anti-money-laundering processes. The staff cuts will in part be done through attrition, TD chief financial officer Kelvin Tran said in an interview.
TD earned $11.1-billion or $6.27 per share in the three months that ended April 30, compared with $2.6-billion or $1.35 in the same quarter last year.
Adjusted to exclude certain items, including the sale of the bank’s stake in U.S.-based investment dealer Charles Schwab Corp., the bank said it earned $1.97 per share. That edged out the $1.78 per share analysts expected, according to S&P Capital IQ.
Bank of Nova Scotia (Scotiabank)
Scotiabank earned $2.03-billion in its second quarter, a 3-per-cent decrease in the three months that ended April 30 compared with the same period the previous year.Sean Kilpatrick/The Canadian Press
- Earnings Q2 2025: $2.03-billion ($1.48 per share)
- Earnings Q2 2024 $2.09-billion ($1.57 per share)
- Adjusted EPS: $1.52 per share
- Analysts’ expectations: $1.57 per share (adjusted)
- Dividend: $1.10 per share
Bank of Nova Scotia BNS-T reported lower second-quarter profit that missed analysts’ estimates after it set aside higher loan loss reserves for rising risk among Canadian consumers and businesses.
In the quarter, Scotiabank set aside $1.4-billion in provisions for credit losses. That was higher than analysts anticipated and an increase from the $1-billion in provisions it booked in the same quarter last year.
The bulk of the increase came from $346-million for performing loans. In the first quarter of this year, Scotiabank had set aside $98-million for performing loans.
Scotiabank earned $2.03-billion, or $1.48 per share, a 3-per-cent decrease in the three months that ended April 30 compared with the same period the previous year.
Adjusted to exclude certain items, the bank said it earned $1.52 per share. That fell below the $1.57 per share analysts expected, according to S&P Capital IQ.
With provisions concentrated in the bank’s Canadian banking business, profit in the unit dropped 31 per cent to $613-million. Loan balances were up 4 per cent year-over-year.
The bank posted higher profits across its international, capital markets and wealth management businesses.
Scotiabank raised its quarterly dividend by 4 cents to $1.10 per share. It also plans to buy back 20 million of its shares.
Bank of Montreal (BMO)
BMO's total revenue rose 9 per cent in the second quarter to $8.68-billion, while expenses increased 4 per cent to $5.02-billion, driven by employee-related and technology costs.Isabella Falsetti/The Globe and Mail
- Earnings Q2 2025: $1.96-billion ($2.50 per share)
- Earnings Q2 2024 $1.87-billion ($2.36 per share)
- Adjusted EPS: $2.62 per share
- Analysts’ expectations: $2.55 per share (adjusted)
- Dividend: $1.63 per share
Bank of Montreal BMO-T reported higher second-quarter profit that beat analysts’ estimates even as the lender set aside more money for loans that could default.
BMO earned $1.96-billion, or $2.50 per share, in the three months that ended April 30. That compared with $1.87-billion, or $2.36 per share, in the same quarter last year.
Adjusted to exclude certain items, the bank said it earned $2.62 per share. That edged out the $2.55 per share analysts expected, according to S&P Capital IQ.
The bank raised its quarterly dividend by 4 cents to $1.63 per share.
In the quarter, BMO set aside $1.05-billion in provisions for credit losses. That was higher than analysts anticipated, and included $289-million against loans that are still being repaid, based on models that use economic forecasting to predict future losses.
Rising risk in Canadian commercial banking and Canadian unsecured consumer lending drove the increase in provisions.
In the same quarter last year, BMO reserved $705-million in provisions.
Total revenue rose 9 per cent in the quarter to $8.68-billion while expenses increased 4 per cent to $5.02-billion, driven by employee-related and technology costs.
National Bank of Canada
National Bank set aside $545-million in provisions for credit losses in the second quarter, which was higher than analysts anticipated.Ryan Remiorz/The Canadian Press
- Earnings Q2 2025: $896-million ($2.17 per share)
- Earnings Q2 2024 $906-million ($2.54 per share)
- Adjusted EPS: $2.85 per share
- Analysts’ expectations: $2.40 per share (adjusted)
- Dividend: $1.18 per share
National Bank of Canada NA-T reported second-quarter profit that beat analysts’ estimates on a boost from capital markets even as the lender ramps up provisions for bad loans.
National’s net income decreased by 1 per cent to $896-million, or $2.17 per share, in the three months that ended April 30.
Adjusted to exclude certain items, including acquisition and integration costs related to the acquisition of Canadian Western Bank, the bank said it earned $2.85 per share. That edged out the $2.40 per share analysts expected, according to S&P Capital IQ.
“In the context of continued geopolitical and geoeconomic uncertainty, our strong capital position allows us to support business growth,” National chief executive officer Laurent Ferreira said in a statement.
The bank raised its quarterly dividend by 4 cents to $1.18 per share.
In the quarter, National Bank set aside $545-million in provisions and included $315-million against loans that are still being repaid. Last quarter, National reserved $254-million in provisions.
While the increase was in part due to rising risk in loans, National also set aside $230-million in provisions stemming from its takeover of Edmonton-based Canadian Western Bank. Excluding provisions from CWB, National’s reserves were slightly above analysts’ estimates.
Total revenue rose 33 per cent in the quarter to $3.65-billion while expenses jumped 32 per cent to $1.94-billion.
Canadian Imperial Bank of Commerce (CIBC)
Pedestrians walk past the large CIBC sign outside CIBC Square on Bay St. in Toronto on April 22, 2025.Fred Lum/The Globe and Mail
- Earnings Q2 2025: $2-billion ($2.04 per share)
- Adjusted EPS: $2.05 per share
- Analysts’ expectations: $1.90 per share (adjusted)
- Dividend: $0.97 per share
Canadian Imperial Bank of Commerce CM-T reported higher second-quarter profit that beat analysts’ estimates.
CIBC earned $2-billion, or $2.04 per share, up 15 per cent from the same quarter last year.
Adjusted to exclude certain items, the bank said it earned $2.05 per share. That edged out the $1.90 per share analysts expected, according to S&P Capital IQ.
In March, CIBC tapped head of capital markets Harry Culham as its next CEO in October.
In the quarter, CIBC set aside $605-million in provisions for credit losses. That was lower than analysts anticipated, and included $142-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, CIBC set aside $67-million in provisions.
Total revenue rose 14 per cent in the quarter to $7-billion while expenses increased 9 per cent to $3.8-billion, which the bank said was driven higher performance-based compensation.
Royal Bank of Canada (RBC)
Royal Bank of Canada signage is pictured in the financial district in Toronto Sept. 8, 2023.Andrew Lahodynskyj/The Canadian Press
- Earnings Q2 2025: $4.39-billion ($3.02 per share)
- Earnings Q2 2024 $3.95-billion ($2.74 per share)
- Adjusted EPS: $3.12 per share
- Analysts’ expectations: $3.20 per share (adjusted)
- Dividend: $1.54 per share
Royal Bank of Canada RY-T reported higher second-quarter profit that missed analysts’ estimates.
RBC earned $4.39-billion, or $3.02 per share, up 11 per cent from the same quarter last year.
Adjusted to exclude certain items, including integration costs related to the purchase of HSCB Bank Canada, the bank said it earned $3.12 per share. That fell below the $3.20 per share analysts expected, according to S&P Capital IQ.
The bank raised its quarterly dividend by 6 cents to $1.54 per share. RBC also said it plans to buy back 35 million of its shares.
In the quarter, RBC set aside $1.42-billion in provisions for credit losses. That was higher than analysts anticipated, and included $568-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, RBC reserved $920-million in provisions.
Canada’s largest bank is telling its employees to return to their offices four days a week, according to previous report from The Globe. The new rules take effect in the fall.