This week, six major Canadian banks released their first-quarter earnings for 2026, reporting impressive profit increases. The reporting period covered the three months leading up to January 31. Each institution exceeded analyst expectations amid a resilient banking environment, largely ignoring concerns over external factors like the U.S. trade war.
Overview of First-Quarter Earnings
The following banks announced their earnings in sequence:
- Bank of Nova Scotia
- Bank of Montreal
- National Bank of Canada
- Royal Bank of Canada
- Canadian Imperial Bank of Commerce
- Toronto-Dominion Bank
All six banks benefited from strong performances across various sectors while also accounting for credit losses. Below is a summary of their earnings reports.
Bank of Nova Scotia (Scotiabank)
- Earnings: $2.29 billion ($1.73 per share)
- Adjusted EPS: $2.05 per share (analysts: $1.95)
- Dividend: $1.10 per share
- Credit Loss Provisions: $1.18 billion
Scotiabank’s profits climbed significantly from $993 million in the prior year. The bank reported a 3% increase in total revenue, reaching $9.65 billion. The CEO noted stable operations despite external challenges in key markets.
Bank of Montreal (BMO)
- Earnings: $2.49 billion ($3.39 per share)
- Adjusted EPS: $3.48 per share (analysts: $3.21)
- Dividend: $1.67 per share
- Credit Loss Provisions: $746 million
BMO experienced a profit rise compared to last year’s $2.14 billion. The bank is focused on enhancing profitability and aims for a 15% return on equity, although results reflect a 12.4% return this quarter.
National Bank of Canada
- Earnings: $1.25 billion ($3.08 per share)
- Adjusted EPS: $3.25 per share (analysts: $2.99)
- Dividend: $1.24 per share
- Credit Loss Provisions: $244 million
This bank’s profits surged from $997 million, bolstered by its acquisition of Canadian Western Bank. National Bank has also intensified its share buyback plan significantly.
Royal Bank of Canada (RBC)
- Earnings: $5.8 billion ($4.03 per share)
- Adjusted EPS: $4.08 per share (analysts: $3.84)
- Dividend: $1.64 per share
- Credit Loss Provisions: $1.09 billion
RBC’s profit increased by 13% compared to the prior year’s $5.13 billion. The bank reported a 7% revenue increase while managing costs effectively.
Canadian Imperial Bank of Commerce (CIBC)
- Earnings: $3.1 billion ($3.21 per share)
- Adjusted EPS: $2.76 per share (analysts: $2.40)
- Dividend: $1.07 per share
CIBC saw a notable rise in profits, reflecting strong performances in multiple divisions, particularly Canadian personal and business banking and capital markets.
Toronto-Dominion Bank (TD Bank)
- Earnings: $4.04 billion ($2.34 per share)
- Adjusted EPS: $2.44 per share (analysts: $2.26)
- Dividend: $1.08 per share
- Credit Loss Provisions: $1.04 billion
TD Bank’s profit surged by 45% year-over-year, driven by strong operational performance. Despite facing restructuring charges, revenue climbed 18% to $16.56 billion.
Conclusion
The first-quarter earnings reports of Canada’s major banks show a positive outlook as they navigate economic challenges. Increased profits across the board indicate resilience and adaptability in a competitive industry, positioning these financial institutions strongly for the upcoming quarters.
