Canada’s biggest banks posted resilient second-quarter profits.Andrew Lahodynskyj/The Canadian Press
Canada’s biggest banks reported their second-quarter earnings this week, covering the three months that ended April 30.
Bank of Nova Scotia, Bank of Montreal and National Bank of Canada kicked off the second-quarter earnings season on Wednesday, followed by Royal Bank of Canada, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank on Thursday.
All six banks reported higher profit that beat analysts’ estimates and all except CIBC also raised their quarterly dividends. Analysts expected the lenders to post a round of resilient profits, bucking economic uncertainty and looming trade pressure ahead of talks to renew the North American trade agreement, USMCA.
Canadian bank stocks have surged 16 per cent this year on the optimism surrounding the sector’s ability to withstand economic uncertainty, outperforming the S&P/TSX Composite Index’s 8-per-cent climb.
Here’s a breakdown of the big banks’ second-quarter results.
Bank of Nova Scotia (Scotiabank)
Scotiabank in Edmonton's Ice District. The bank was the first of the Big Six to report second-quarter earnings on Wednesday.Amanda Erickson/The Globe and Mail
- Earnings Q2 2026: $2.6-billion ($2.00 per share)
- Earnings Q2 2025: $2-billion ($1.48 per share)
- Adjusted EPS: $2.02 per share
- Analysts’ expectations: $1.93 per share (adjusted)
- Dividend: $1.14 per share
Bank of Nova Scotia BNS-T reported higher second-quarter profit that beat analysts’ estimates on a boost from its Canadian banking unit as the lender seeks to bolster its profitability.
Scotiabank earned $2.6-billion, or $2.00 per share, in the three months that ended April 30, compared with $2-billion, or $1.48 per share, in the same quarter last year.
Adjusted to exclude certain items, the bank said it earned $2.02 per share. That edged out the $1.93 per share analysts expected, according to data from Bloomberg.
Last quarter, Scotiabank said it expects to hit its target of 14-per-cent return on equity in 2027, a year earlier than expected. In the second quarter, Scotiabank posted an adjusted return on equity of 13.2 per cent.
The bank raised its quarterly dividend by 4 cents to $1.14 per share.
In the quarter, Scotiabank set aside $1.2-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That was higher than analysts anticipated, and included $1.1-billion 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, Scotiabank set aside $1.4-billion in provisions.
Total revenue rose 8 per cent in the quarter to $9.8-billion. But expenses increased 2 per cent to $5.2-billion, which the bank said was driven by higher staffing, technology, advertising and business development costs.
Bank of Montreal (BMO)
A person walks by a BMO branch in Vancouver, B.C. BMO was the second major Canadian bank to report earnings on Wednesday.Isabella Falsetti/The Globe and Mail
- Earnings Q2 2026: $2.6-billion ($3.53 per share)
- Earnings Q2 2025: $1.96-billion ($2.50 per share)
- Adjusted EPS: $3.67 per share
- Analysts’ expectations: $3.41 per share (adjusted)
- Dividend: $1.71 per share
Bank of Montreal BMO-T reported higher second-quarter profit that topped analysts’ estimates on a boost from its capital markets business and its division in the United States.
BMO earned $2.6-billion, or $3.53 per share, in the three months that ended April 30, up 34 per cent from the same quarter last year.
Adjusted to exclude certain items, the bank said it earned $3.67 per share. That beat the $3.41 per share analysts expected, according to data from Bloomberg.
In March, BMO unveiled its new strategy to revive its U.S. business and boost its return on equity – a closely watched measure of profitability. In 2024, BMO set a goal of improving its ROE to 15 per cent by the end of 2027.
The U.S. division – which makes up 40 per cent of BMO’s earnings – is weighing on the bank’s profitability. BMO set a target to improve the unit’s ROE from 8 per cent to 12 per cent by 2028.
In the second quarter, BMO’s return on equity edged higher to 13 per cent and 8.6 per cent in its U.S. business.
The bank raised its quarterly dividend by 4 cents to $1.71 per share.
In the quarter, BMO set aside $739-million in provisions for credit losses. That was lower than analysts expected and included $734-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.
Revenue rose 10 per cent in the quarter to $9.6-billion, while expenses increased 6 per cent to $5.3-billion.
National Bank of Canada
National Bank of Canada reported higher profit for the fiscal second quarter for 2026.Paul Chiasson/The Canadian Press
- Earnings Q2 2026: $1.23-billion ($3.06 per share)
- Earnings Q2 2025: $896-million ($2.17 per share)
- Adjusted EPS: $3.23 per share
- Analysts’ expectations: $3.14 per share (adjusted)
- Dividend: $1.32 per share
National Bank of Canada NA-T reported higher profit for the fiscal second quarter and raised its quarterly dividend as lower loan loss reserves and strong performance from capital markets as well as retail banking boosted the lender’s earnings.
National Bank earned $1.23-billion, or $3.06 a share, for the quarter that ended April 30. In the same quarter last year, the bank earned $896-million, or $2.17 a share.
After adjusting to exclude certain items, National Bank said it earned $3.23 a share. That beat analysts’ consensus expectation for profit of $3.14 a share, according to Bloomberg data.
Earnings in the second fiscal quarter last year were affected by National Bank’s acquisition of Canadian Western Bank (CWB), which added to its loan-loss reserves.
The Montreal-based bank is expecting to reap about $300-million in annual savings on costs and funding once it has merged CWB’s operations with its own. As of April 30, the bank said it has achieved $215-million so far, and is on track to reach $270-million by the end of the fiscal year.
National Bank raised its quarterly dividend by 8 cents to $1.32 per share. That was a larger increase than the 5 cents some analysts had expected.
Provisions for credit losses was $233-million, down from $545-million a year earlier.
A lower provision of $38-million on performing loans, which are still being paid back, largely accounted for the decrease. In the fiscal second quarter last year, the bank took an initial provision of $315-million, mostly because of the CWB acquisition.
National Bank’s return on equity was 15.9 per cent. And its key measure of capital reserves - the common equity Tier 1 ratio – was 13.5 per cent, down from 13.7 per cent in the prior quarter as the bank bought back 8.8 million shares so far this fiscal year.
Royal Bank of Canada (RBC)
RBC’s profit climbed 25 per cent to $5.5-billion, or $3.85 per share, in the three months that ended April 30.Christopher Katsarov/The Canadian Press
- Earnings Q2 2026: $5.5-billion ($3.85 per share)
- Earnings Q2 2025: $4.39-billion ($3.02 per share)
- Adjusted EPS: $3.90 per share
- Analysts’ expectations: $3.77 per share (adjusted)
- Dividend: $1.76 per share
Royal Bank of Canada RY-T posted higher second-quarter profit that beat analysts’ estimates, boosted by a surge in capital markets earnings and lower provisions for sour loans.
RBC’s profit climbed 25 per cent to $5.5-billion, or $3.85 per share, in the three months that ended April 30.
Adjusted to exclude certain items, the bank said it earned $3.90 per share. That topped the $3.77 per share analysts expected, according to Bloomberg data.
The bank raised its quarterly dividend by 12 cents to $1.76 per share. The lender also said it plans to repurchase 45 million of its shares, representing about 3 per cent of its common stock.
RBC has been focused on bolstering its profitability. During fourth-quarter earnings in December, the bank raised its return on equity (ROE) target to 17 per cent or more after surpassing the 16-per-cent goal the bank set at its investor day last year.
In the quarter, the bank posted higher ROE at 17.2 per cent.
RBC set aside $912-million in provisions for credit losses. That was lower than analysts anticipated, and included $899-million against loans 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 set aside $1.4-billion in provisions as it built up reserves ahead of a potential economic downturn.
Canadian Imperial Bank of Commerce (CIBC)
CIBC earned $2.47-billion, or $2.53 a share, for the quarter that ended April 30.Amanda Erickson/The Globe and Mail
- Earnings Q2 2026: $2.47-billion ($2.53 per share)
- Earnings Q2 2025 $2.01-billion ($2.04 per share)
- Adjusted EPS: $2.54 per share
- Analysts’ expectations: $2.42 per share (adjusted)
- Dividend: $1.07 per share
Canadian Imperial Bank of Commerce CM-T reported a 23-per-cent increase in fiscal second-quarter profit that beat analysts’ estimates, and announced a deal to sell its Caribbean division for US$1.6-billion.
Profits were up across each of the bank’s business units in the quarter that ended April 30. Capital markets earnings increased 40 per cent from a year earlier as revenue from trading and investment banking surged, and the bank recovered funds previously earmarked to cover losses on loans.
CIBC earned $2.47-billion, or $2.53 a share, compared with $2.01-billion, or $2.04 a share, in the same quarter last year.
After adjusting for amortization costs, CIBC said it earned $2.54 a share. The consensus estimate among analysts going into the quarter was $2.42 a share, according to Bloomberg.
The bank also announced a plan to buy back up to 30 million shares, or 3.3 per cent of its outstanding share count, over the next year. Its quarterly dividend was unchanged at $1.07 a share.
CIBC said it has reached a deal to sell its 91.67-per-cent stake in CIBC Caribbean to Bermuda-based The Bank of N.T. Butterfield & Son. CIBC will receive US$1-billion in cash and Butterfield shares currently worth US$645-million, and the transaction is expected to close in the first half of 2027.
Chief executive officer Harry Culham also announced the first changes to his senior executive team since he took the helm at the bank last November, creating roles with sole oversight for commercial banking as well as wealth management.
In the second fiscal quarter, CIBC’s provisions for credit losses was unchanged from a year earlier, at $605-million.
Provisions on loans that are past due increased by $85-million, to $548-million, which the bank attributed to “economic pressures” and some seasonal trends.
Toronto-Dominion Bank (TD Bank)
TD Bank posted second-quarter earnings that topped analysts’ expectations as profit rose in its Canadian banking and capital markets units.Amanda Erickson/The Globe and Mail
- Earnings Q2 2026: $$4.17 billion ($2.38 per share)
- Earnings Q2 2025: $3.63 billion ($1.97 per share)
- Adjusted EPS: $2.38 per share
- Analysts’ expectations: $2.26 per share (adjusted)
- Dividend: $1.12 per share
Toronto-Dominion Bank TD-T posted earnings that topped analysts’ expectations on higher profit from its Canadian banking and capital markets units as the lender set aside fewer provisions for sour loans.
The bank said it earned $2.38 a share on an adjusted basis for the second quarter ended April 30. That beat the $2.26 a share analysts estimated, according to Bloomberg data.
The bank raised its quarterly dividend 4 cents to $1.12 a share. TD has also been buying back shares as it sits on a substantial amount of excess capital.
TD is betting on its Canadian businesses to prop up its growth ambitions as it cuts costs and remediates its anti-money-laundering failures in the United States.
Canadian personal and commercial banking profit was $1.93-billion, up 15 per cent from a year earlier on higher revenue and lower provisions. Loan balances were up 6 per cent year over year as deposits rose 3 per cent.
Adjusted net income from the bank’s U.S. arm was up 8 per cent at $960-million. Expenses climbed 10 per cent from the year prior as TD spends to fix gaps in its risk governance and controls. The bank has been restructuring its balance sheet and operations to cut costs.
TD set aside $1-billion in provisions for credit losses. That was lower than analysts anticipated, and included $973-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, TD set aside $1.34-billion in provisions.