A breakdown of the big banks’ third-quarter earnings
Get the Finance newsletter
Daily finance — markets, central banks, M&A, the prints that move money. Free.
- Royal Bank of Canada posted an 11% profit rise to $6-billion ($4.23/share), beating the $4.07/share analyst estimate, driven by stronger capital markets, commercial banking, and wealth management.
- Toronto-Dominion Bank saw net income jump 38% to $4.62-billion ($2.74/share), topping $2.47/share estimates, and plans to open 100 new U.S. branches by the end of 2028 while addressing anti-money-laundering gaps.
- Bank of Nova Scotia reported a 17% profit increase to $2.95-billion ($2.27/share), beating $2.10/share estimates and posting an adjusted return on equity of 14.2% — hitting its 2027 target a year early.
- Bank of Montreal posted a 25% drop in reported net income to $1.75-billion, weighed down by the sale of its transportation and vendor finance business, but adjusted EPS of $3.96 beat $3.75 estimates and the bank announced a 25-million share buyback.
- Canadian Imperial Bank of Commerce earned $2.41-billion ($2.47/share), up 15% year-over-year, beating $2.50/share forecasts by gaining domestic business while keeping loan losses in check.
- National Bank of Canada climbed 23% in net income to $1.31-billion ($3.25/share), beating $3.21/share estimates on stronger personal banking, capital markets, and wealth management results.
- Canadian bank stocks have surged 24% year-to-date entering the results, suggesting investors had already priced in confidence in the sector's resilience to trade and geopolitical headwinds.
Why it matters: With Canadian bank stocks already up 24% year-to-date entering results, all six banks clearing estimates validates investor confidence despite trade and geopolitical headwinds — but BMO's 25% reported profit drop (driven by its transportation finance divestiture) and TD's 100-branch U.S. expansion plan reveal divergent strategic paths beneath the uniformly strong quarter.
Ask SkimNews
