A breakdown of the big Canadian banks’ second-quarter earnings
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- Scotiabank posted Q2 profit of $2.6 billion ($2.00 per share), beating analysts’ $1.93 expectation, and raised its quarterly dividend to $1.14 per share.
- BMO reported Q2 earnings of $2.6 billion ($3.53 per share), surpassing the $3.41 adjusted EPS forecast, and increased its dividend to $1.71 per share.
- All six major Canadian banks posted higher Q2 profit that beat analysts’ estimates, with every bank except CIBC raising its quarterly dividend.
- Canadian bank stocks have jumped 16% year‑to‑date, outpacing the S&P/TSX Composite’s 8% gain amid investor optimism about the sector’s resilience.
- Scotiabank set aside $1.2 billion in credit‑loss provisions, up from $1.4 billion a year earlier, reflecting higher expected loan defaults.
Why it matters: Investors see stronger earnings and dividend hikes, reinforcing confidence in banks’ ability to lend despite higher loss provisions, while the sector’s 16% stock surge outpaces the broader market.
