Scotiabank performed better in the third quarter than analysts expected.Isabella Falsetti/The Globe and Mail
Canada’s biggest banks are reporting their earnings for the fiscal third quarter, covering the three months that ended July 31.
Analysts were expecting Canada’s big banks to lower loan-loss provisions in the third quarter from the prior quarter as U.S. tariffs likely hurt their loan portfolios less than feared.
Prior to this quarter, higher interest rates and a potential trade war with the U.S. led banks to increase loss provisions. But they now expect tariffs to have a milder impact on the economy, easing concerns over credit defaults.
For example, Darryl White, chief executive officer of Bank of Montreal, said the business uncertainty created by U.S. President Donald Trump’s tariff policies has receded in recent months.
Bank of Montreal and Bank of Nova Scotia kicked off the third-quarter earnings season on Tuesday, followed by Royal Bank of Canada and National Bank of Canada on Wednesday. Canadian Imperial Bank of Commerce and Toronto-Dominion Bank reported on Thursday.
Here’s a breakdown of the big banks’ third-quarter earnings.
Bank of Nova Scotia (Scotiabank)
After increasing its dividend by four cents in its second quarter, the bank held it steady in the third quarter at $1.10 per share.CARLOS OSORIO/Reuters
- Earnings Q3 2025: $2.53-billion ($1.84 per share)
- Earnings Q3 2024: $1.91-billion ($1.41 per share)
- Adjusted EPS: $1.88 per share
- Analysts’ expectations: $1.73 per share (adjusted)
- Dividend: $1.10 per share
Bank of Nova Scotia BNS-T reported a higher fiscal third-quarter profit, outperforming expectations despite uncertainty surrounding U.S. tariffs.
Scotiabank opened the sector’s quarterly earnings season on Tuesday, posting a profit of $2.53-billion, compared with $1.91-billion in the same quarter last year. That was stronger than expectations.
That translates to $1.84 a share for the three months that ended July 31, up from $1.41 a share a year earlier.
Adjusted to exclude items, Scotiabank said it earned $1.88 a share. Analysts surveyed by S&P Capital IQ were expecting a profit of $1.73 a share.
“We reported improving revenue growth which helped drive another quarter of positive operating leverage and pushed our return on equity meaningfully higher compared to the prior year,” said chief executive officer Scott Thomson, in a release.
“We did this all while maintaining a strong balance sheet and buying back shares.”
Scotiabank held its quarterly dividend steady at $1.10 per share, after a four-cent increase in its second quarter.
The bank reported lower provisions for credit losses, or money it sets aside to cover soured loans, which dropped to $1.04-billion, down $11-million from a year earlier.
The bank had lower provisions for performing loans, or loans that are still in good standing but that the bank expects will be late, because of changes in credit quality in its commercial and retail portfolios.
Earnings in Scotiabank’s key Canadian banking operations fell 2 per cent in its latest quarter to $958-million, when compared to last year, while capital markets earnings rose by 29 per cent to $473-million. Results in its wealth-management arm, meanwhile, increased 14 per cent to $417-million.
Bank of Montreal (BMO)
BMO’s CEO Darryl White said the uncertainty created by U.S. tariffs has receded in recent months.Sean Kilpatrick/The Canadian Press
- Earnings Q3 2025: $2.22-billion ($3.14 per share)
- Earnings Q3 2024: $1.87-billion ($2.48 per share)
- Adjusted EPS: $3.23 per share
- Analysts’ expectations: $2.97 per share (adjusted)
- Dividend: $1.63 per share
Bank of Montreal BMO-T reported stronger-than-expected financial results and a drop in provisions for bad loans.
BMO reported a $2.22-billion profit in the three months ended July 31, up 25 per cent from $1.87-billion in the same period a year ago. The bank’s earnings per share rose 26 per cent to $3.14, compared to $2.48.
The bank’s adjusted net income, the measure of profit investors focus on, was $2.4-billion, or $3.23 per share. That compared with $1.98-billion, or $2.64 per share, a year earlier. BMO’s results beat analysts’ consensus estimate of a $2.97-per-share profit.
BMO increased the size of its stock buyback program to 30 million shares, from 20 million, subject to approval by regulators and the Toronto Stock Exchange. The increase in the normal course issuer bid is one of the ways the bank can return more of its excess capital to shareholders.
“Credit performance in the quarter was slightly better than we had expected,” said analyst Mike Rizvanovic at Bank of Nova Scotia in a report on Tuesday. “An increased share buyback program was another positive.”
So far this fiscal year, BMO has repurchased 15.7 million shares. The bank’s Tier 1 ratio, a benchmark for its financial strength, increased to 13.5 per cent from 13 per cent a year ago.
Prior to this quarter, higher interest rates and a potential trade war with the U.S. led banks to increase loss provisions. But they now expect tariffs to have a milder impact on the economy, easing concerns over credit defaults.
BMO’s loan-loss provisions came in at $797-million during the quarter, compared with $906-million a year ago.
Royal Bank of Canada (RBC)
Ongoing trade tensions remain the key risk factor preventing Canada’s largest bank lender from committing to a more positive economic forecast, RBC chief executive officer Dave McKay said on a conference call.Fred Lum/The Globe and Mail
- Earnings Q3 2025: $5.4-billion ($3.75 per share)
- Earnings Q3 2024: $4.5-billion ($3.09 per share)
- Adjusted EPS: $3.84 per share
- Analysts’ expectations: $3.29 per share (adjusted)
- Dividend: $1.54 per share
Royal Bank of Canada RY-T reported higher third-quarter profit as it set aside less money for loan losses than analysts were expecting and experienced strong growth in its commercial banking and capital markets divisions.
Canada’s largest lender reported net income of $5.4-billion for the three-month period from May through July, up 21 per cent from the same time in 2024.
Adjusted earnings per share were $3.84, well above the average analyst expectation of $3.29 per share, according to S&P Capital IQ.
The bank set aside $881-million in provisions for credit losses in the quarter, which is money for loans at risk of default. That is a 34-per-cent increase from the same period of last year, but significantly lower than the $1-billion Canaccord Genuity analyst Matthew Lee had been expecting.
During the second quarter, when trade tensions were at a peak amid Trump’s tariff war threats, RBC had set aside $1.42-billion in provisions for credit losses.
Ongoing trade tensions remain the key risk factor preventing Canada’s largest bank lender from committing to a more positive economic forecast, RBC chief executive officer Dave McKay said on a Wednesday morning conference call.
Capital markets profit was more than $1.3-billion, up 13 per cent on a year-over-year basis, primarily due to higher revenue in global markets and corporate and investment banking.
National Bank of Canada
Revenue for the quarter totalled $3.45-billion, compared with $3-billion in the same quarter last year.Ryan Remiorz/The Canadian Press
- Earnings Q3 2025: $1.07-billion ($2.58 per share)
- Earnings Q3 2024: $1.03-billion ($2.89 per share)
- Adjusted EPS: $2.68 per share
- Analysts’ expectations: $2.69 per share (adjusted)
- Dividend: $1.18 per share
National Bank of Canada NA-T reported a third-quarter profit of $1.07-billion, up from $1.03-billion a year earlier.
The Montreal-based bank says the profit amounted to $2.58 per diluted share for the quarter ended July 31, compared with $2.89 per diluted share a year ago.
Revenue for the quarter totalled $3.45-billion, compared with $3-billion in the same quarter last year.
National Bank’s provisions for credit losses in the quarter amounted to $203-million, up from $149-million.
The bank says its adjusted profit amounted to $2.68 per diluted share, unchanged from a year ago.
Analysts on average had expected an adjusted profit of $2.69 per share, according to LSEG Data & Analytics.
The bank’s personal and commercial banking segment reported net income of $370-million, up one per cent from $366-million a year earlier.
Its wealth management segment reported a net income of $244-million, a 12 per cent increase from $217-million last year. Financial Markets profit was $334-million, up 5 per cent from $318-million last year.
The bank’s U.S. specialty finance and international segment reported a net income of $178-million in the third quarter, up 13 per cent from $158-million in the third quarter of 2024.
The bank also announced Wednesday that its board of directors has authorized a normal course issuer bid to purchase up to eight million or roughly 2 per cent of its common shares for cancellation. It expects to begin the process around Sept. 25 and conclude a year later.
Canadian Imperial Bank of Commerce (CIBC)
CIBC’s quarterly results continue a series of strong earnings for the bank, as Harry Culham prepares to take over as chief executive officer in November when current CEO Victor Dodig retires.Fred Lum/The Globe and Mail
Earnings Q3 2025: $2.1-billion ($2.15 per share)
Earnings Q3 2024 $1.8-billion ($1.82 per share)
Adjusted EPS: $2.16 per share
Analysts’ expectations: $2 per share (adjusted)
Dividend: $0.97 per share
Canadian Imperial Bank of Commerce CM-T reported higher fiscal third-quarter profit on Thursday as capital markets earnings soared on robust trading revenue and its domestic retail banking unit had a strong quarter.
CIBC earned $2.1-billion, or $2.15 per share, in the three months that ended July 31. Quarterly profit was up 17 per cent from $1.8-billion, or $1.82 per share, a year earlier.
Adjusted to exclude certain items, CIBC said it earned $2.16 per share, which was well ahead of the consensus estimate among analysts of $2 a share, according to data from the London Stock Exchange Group (LSEG).
CIBC kept its quarterly dividend unchanged at 97 cents per share, and also announced a plan to buy back about 2.2 per cent of its outstanding shares.
Uncertainty over tariffs has weighed on economic growth and demand for loans at major Canadian banks, but concerns about the outlook appear to be easing.
CIBC earmarked $559-million of provisions for credit losses, which is money banks set aside to cover loans that are at risk of defaulting. That was below the $575-million analysts expected, according to LSEG, and down 8 per cent from the fiscal second quarter, when banks were stocking up on provisions near the peak of trade tensions with the U.S.
CIBC’s quarterly results continue a series of strong earnings for the bank, as Harry Culham prepares to take over as chief executive officer in November when current CEO Victor Dodig retires.
Profit from Canadian personal and business banking was $812-million, up 17 per cent from a year earlier. The bank had stronger revenue and profit margins on loans.
But loan growth was still modest at 2 per cent and the division had higher loan loss provisions, at $444-million, suggesting that high interest rates and economic uncertainty are still putting strain on some clients.
Capital markets profit surged 87 per cent to $540-million, as trading revenue climbed by 29 per cent in the quarter.
Toronto-Dominion Bank (TD Bank)
The TD Bank branch at King St. West and Bay St. in Toronto’s Financial District, is photographed on Feb 11 2021Fred Lum/The Globe and Mail
Earnings Q3 2025: $3.34-billion ($1.89 per share)
Earnings Q3 2024: $181-million loss ($0.14 per share)
Adjusted EPS: $2.20 per share
Analysts’ expectations: $2.05 per share (adjusted)
Dividend: $1.05 per share
Toronto-Dominion Bank TD-T reported a higher third-quarter profit that beat analysts’ estimates but also booked restructuring charges as the bank works to shore up deficiencies in its anti-money laundering controls and adjust to a cap on U.S. retail assets imposed by regulators.
TD earned profit of $3.34-billion, or $1.89 per share, in the fiscal third quarter that ended July 31. That compared with a quarterly loss in the same quarter last year after U.S. regulators hit the bank with a US$3-billion fine over serious lapses in its programs to prevent money laundering.
Adjusted to exclude that one-time charge, TD said it earned $2.20 per share, which was higher than the $2.05 consensus estimate among analysts.
The quarterly earnings were affected by $262-million incurred from TD’s moves to restructure its U.S. balance sheet, which has included selling loans to stay under the regulatory asset cap.
TD now has US$386-billion of assets in its U.S. business, which is below the US$434-billion limit. TD also took a $333-million restructuring charge in the quarter as part of a previously announced plan to spend $600-million to $700-million over several quarters to reduce its overall staffing by 2 per cent and eventually save $550-million to $650-million annually, before tax.
A bright spot in TD’s third-quarter results was its Canadian retail banking division, which reported profit of $1.95-billion, up 4 per cent from last year. The division has lagged rival banks in recent quarters, but has emerged as a key point of emphasis as the bank’s ambitions to grow in the U.S. have been curbed for the time being.
Profit from U.S. retail banking was $760-million, compared with a loss in the same quarter last year. Loans were down 7 per cent because of asset sales, and the division had higher governance and control costs.
Wealth management and insurance profit was $703-million, up 63 per cent from a year ago. And profit from wholesale banking was $398-million, up 26 per cent year over year.
TD set aside $971-million in provisions for credit losses, or money earmarked to cover loans that may default. That was lower than the second quarter and well below the $1.2-billion analysts anticipated, according to LSEG.