Stock news for investors: Fourth-quarter earnings roll in from Canada’s big banks
From RBC to TD, Canada’s major banks posted fourth-quarter earnings this week, highlighting shifting profits, credit trends, and signals for investors.
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From RBC to TD, Canada’s major banks posted fourth-quarter earnings this week, highlighting shifting profits, credit trends, and signals for investors.
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Numbers for its fourth quarter:
Scotiabank says it earned $2.21 billion in net income for its fourth quarter, up from $1.69 billion in the same quarter last year, helped by strength in its wealth management and capital markets businesses. The bank said Tuesday the profit amounted to $1.65 per diluted share for the quarter ended Oct. 31, up from $1.22 per diluted share in the same period a year ago.
Revenue totalled $9.80 billion, up from $8.53 billion in the same quarter last year. The bank’s provision for credit losses amounted to $1.11 billion for the quarter, up from $1.03 billion a year ago.
On an adjusted basis, Scotiabank says it earned $1.93 per diluted share in its latest quarter, up from an adjusted profit of $1.57 per diluted share a year ago. Analysts on average had expected an adjusted profit of $1.84, according to estimates compiled by LSEG Data & Analytics.
Scotiabank chief executive Scott Thomson said 2025 was a very positive year for the bank. “We delivered improving results through the year as we strengthened our balance sheet, improved our loan-to-deposit ratio, and increased return on equity,” Thomson said in a statement. “This quarter all our business lines reported year-over-year earnings growth with particular strength in global wealth management and global banking and markets and improving results in Canadian banking.”
The bank’s global wealth management business earned $447 million in net income attributable to equity holders, up from $380 million in the same quarter last year, while its global banking and markets business earned $519 million for the quarter, up from $347 million a year ago.
Scotiabank’s Canadian banking operations earned $941 million in its latest quarter, up from $934 million in the same quarter last year. Meanwhile, Scotiabank’s international banking arm earned $634 million in net income attributable to equity holders of the bank for the quarter, up from $600 million a year ago.
Numbers for its fourth quarter:
National Bank of Canada raised its dividend as it reported a fourth-quarter profit of $1.06 billion. The bank said Wednesday it will now pay a quarterly dividend of $1.24 per share, an increase of six cents.
National Bank, which announced Tuesday that it was buying Laurentian Bank’s retail and small business segments, says its fourth-quarter profit amounted to $2.57 per diluted share, compared with net income of $955 million or $2.66 per diluted share a year ago when it had fewer shares outstanding.
Revenue for the quarter ended Oct. 31 totalled $3.70 billion, up from $2.94 billion a year earlier.
The bank’s provisions for credit losses amounted to $244 million, up from $162 million in the same quarter last year. On an adjusted basis, National Bank says it earned $2.82 per diluted share in its latest quarter, up from an adjusted profit of $2.58 per diluted share in the same quarter last year. Analysts on average had expected an adjusted profit of $2.62 per share, according to estimates compiled by LSEG Data & Analytics.
“With our strengthened national presence, diversified business mix, strong capital ratios and prudent credit profile, we are well-positioned to generate continued growth and superior returns, in what will remain a complex macro-environment,” National Bank chief executive Laurent Ferreira said in a statement.
The bank said its personal and commercial banking group earned $319 million in its latest quarter, down from $327 million a year ago, as it was hit by costs related to the acquisition of Canadian Western Bank.
National Bank’s wealth management business earned $258 million, up from $219 million, while its capital markets arm earned $432 million, up from $306 million.
National Bank’s U.S. specialty finance and international operations earned $174 million, up from $157 million in the same quarter last year.
Numbers for its fourth quarter:
Royal Bank of Canada handily beat analyst expectations as it reported record fourth-quarter results that showed rising profits across most divisions.
The bank said Wednesday it made a profit of $5.43 billion in the quarter ending Oct. 31, up from a profit of $4.22 billion a year ago, as capital markets, wealth management and personal and commercial banking all saw higher returns, offset by lower results in insurance. The results helped lead RBC to increase its quarterly dividend to $1.64 per share, up from $1.54 per share.
The bank sees continued strength ahead, raising its return-on-equity target to 17 per cent, up from 16 per cent.
RBC’s results and outlook come despite continued trade and economic uncertainty, but chief executive Dave McKay expressed cautious optimism on the wider picture. “While the operating environment remains fluid and complex, and there is a lot of hard work yet to be done by governments and the private sector, I am cautiously optimistic on the outlook for Canada,” he said on an earnings call with analysts Wednesday.
McKay noted that overall Canada’s effective tariff rate remains low and has done little to impact exports to the U.S., while the ongoing shift to a service-oriented economy should also offset some trade-related headwinds. He did, however, express concern with the split economic recovery, which is leading to increased inequality.
“The impact of the K-shaped economy is increasingly polarizing, with more affluent consumers investing disposable income and growing markets, while less affluent consumers struggle with affordability.” The trend can be seen in RBC’s own results, with its capital markets and wealth management divisions driving much of the earnings beat.
Meanwhile, many borrowers continue to struggle, with the bank increasing its provisions for potentially bad loans in the quarter to $1.01 billion, up from $840 million a year ago.
Chief risk officer Graeme Hepworth said the overall Canadian economy has demonstrated strong resilience this past year with household spending strong, but the bank has maintained a prudent approach to provisions given trade issues are largely unresolved and pockets of concern remain.
“Rising unemployment in Ontario and the Greater Toronto Area, coupled with higher payments at mortgage renewal, have contributed to rising consumer impairments in these regions,” said Hepworth. “We expect retail losses to remain elevated in 2026 as we work through the lag effect of higher unemployment, consumer insolvencies, and ongoing payment shocks for mortgage renewals in Canada.”
The areas of concern did little to hold back overall results, with adjusted earnings of $3.85 per diluted share in the quarter, up from an adjusted profit of $3.07 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $3.53 per share, according to estimates compiled by LSEG Data & Analytics.
Scotiabank analyst Mike Rizvanovic said that while credit losses were elevated, they remained manageable as other areas like capital markets and wealth shined. “A strong quarter overall for (Royal Bank) at first look, driven by outsized growth in the top line that benefited once again from solid gains in market-sensitive businesses, which comfortably offset a modest miss across other business lines,” he said in a note.
Revenue totalled $17.21 billion, up from $15.07 billion in the same quarter last year.
RBC’s wealth management arm earned $1.28 billion, up from $969 million a year ago, while the bank’s capital markets business earned $1.43 billion, up from $985 million in the same quarter last year. Personal banking earned $1.89 billion in the bank’s latest quarter, up from $1.58 billion a year ago. Commercial banking operations earned $810 million, up from $774 million. RBC’s insurance business earned $98 million, down from $162 million a year ago.
Numbers for its fourth quarter:
CIBC raised its dividend as it reported a fourth-quarter profit of $2.18 billion, up from $1.88 billion a year ago. The bank said Thursday it will now pay a quarterly dividend of $1.07 per share, up from 97 cents per share. CIBC says its profit for the quarter ended Oct. 31 amounted to $2.20 per diluted share, up from $1.90 per diluted share a year ago.
Revenue for the quarter totalled $7.58 billion, up from $6.62 billion, while the bank’s provision for credit losses amounted to $605 million, up from $419 million a year ago. On an adjusted basis, CIBC says it earned $2.21 per diluted share, up from an adjusted profit of $1.91 per diluted share in the same quarter last year.
Analysts on average had expected an adjusted profit of $2.08 per share, according to estimates compiled by LSEG Data & Analytics.
“In a dynamic operating environment, our proactive and disciplined approach to managing our business, our resilient capital position and our deep client relationships supported robust growth while maintaining strong credit quality,” CIBC chief executive Harry Culham said in a statement.
CIBC said the growth came as its Canadian personal and business banking business earned $796 million in its latest quarter, up from $792 million a year ago as higher revenue was partially offset by a higher provision for credit losses and higher expenses.
The bank’s Canadian commercial banking and wealth management group earned $603 million, up from $551 million a year ago, while its U.S. commercial banking and wealth management business earned $275 million, up from $200 million a year ago.
CIBC’s capital markets business earned $548 million, up from $346 million in the same quarter last year.
CIBC also announced several senior executive changes Thursday that will be effective Jan. 1. The bank said Sandy Sharman, senior executive vice-president and group head, people, culture and brand, will transition to the role of special adviser before retiring at the end of 2026. CIBC also said Christina Kramer, senior executive vice-president and chief administrative officer, will add responsibility for enterprise real estate, enterprise capabilities and organizational agility, brand, community investment, client experience, communications, and corporate events. Richard Jardim will be appointed senior executive vice-president and chief technology and information officer, global technology, data and AI, while Yvonne Dimitroff will become executive vice-president and chief human resources officer, people, culture and talent.
Numbers for its fourth quarter:
BMO Financial Group raised its dividend as it reported a fourth-quarter profit of $2.30 billion. The bank said Thursday it will now pay a quarterly dividend of $1.67 per share, an increase of four cents per share. BMO says its profit amounted to $2.97 per diluted share for the quarter ended Oct. 31 compared with a profit of $2.30 billion or $2.94 per diluted share a year ago when it had more shares outstanding.
Revenue for the quarter totalled $9.34 billion, up from $8.96 billion last year, while the bank’s provision for credit losses totalled $755 million, down from $1.52 billion a year ago. On an adjusted basis, BMO says it earned $3.28 per diluted share, up from an adjusted profit of $1.90 per diluted in the same quarter last year.
Analysts on average had expected an adjusted profit of $3.03 per share, according to estimates compiled by LSEG Data & Analytics.
“Fiscal 2025 was a strong year for BMO, with consistent execution and growing momentum to achieve our commitments to shareholders,” BMO chief executive Darryl White said. “We enter 2026 in a position of financial strength, with a focused strategy and a winning culture that continues to grow and attract talent across the bank.”
BMO said its Canadian personal and commercial banking business earned $752 million, up from $750 million a year ago, while its U.S. banking business earned $807 million, up from $281 million in the same quarter last year.
The bank’s wealth management arm earned $383 million, up from $301 million a year ago.
BMO’s capital markets business earned $521 million, up from $251 million in the same quarter last year.
The bank also announced Thursday the appointment of Tammy Brown to its board of directors.
Brown previously served as deputy chair of KPMG Canada’s board of directors and was a partner and national industry leader for industrial markets at the firm.
Numbers for its fourth quarter:
TD Bank Group raised its dividend as it reported its fourth-quarter profit fell compared with a year ago, weighed down by one-time restructuring charges. The bank said Thursday it will pay a quarterly dividend of $1.08 per share, up from $1.05 per share.
TD says its profit amounted to $3.28 billion or $1.82 per diluted share for the quarter ended Oct. 31, compared with a profit of $3.64 billion or $1.97 per diluted share a year ago. On an adjusted basis, TD says it earned $2.18 per diluted share for its latest quarter, up from an adjusted profit of $1.72 per diluted share in the same quarter last year.
Revenue for the quarter totalled $15.49 billion, down from $15.51 billion a year ago, while the bank’s provision for credit losses amounted to $982 million, down from $1.11 billion in the same quarter last year.
Analysts on average had expected an adjusted profit of $2.03 per share, according to estimates compiled by LSEG Data & Analytics.
“TD had a strong fourth quarter, delivering robust fee and trading income in our markets-driven businesses as well as volume growth year-over-year in Canadian personal and commercial banking, capping a year of strong performance,” TD chief executive Raymond Chun said in a statement.
TD said its Canadian personal and commercial banking business earned $1.87 billion in its latest quarter, up from $1.82 billion a year ago as higher revenue was partially offset by higher provisions for credit losses and non-interest expenses.
The bank’s U.S. retail banking operations earned $719 million, up from $702 million in the same quarter last year.
TD’s wealth management business earned $699 million in the quarter, up from $349 million a year ago, while the bank’s wholesale baking group earned $494 million, up from $235 million in the same quarter last year.
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