Canadian Banks Report Strong First-Quarter Earnings Amid Economic Uncertainty

In a notable first quarter of 2026, Canada’s major banks, including Royal Bank of Canada (RBC), Toronto-Dominion Bank (TD), and Canadian Imperial Bank of Commerce (CIBC), reported earnings that exceeded analysts' expectations across multiple business lines. RBC achieved an adjusted earnings per share (EPS) of C$4.08, surpassing the C$3.84 forecast, while TD reported an adjusted EPS of C$2.44, exceeding the C$2.25 estimate. CIBC's adjusted EPS of C$2.76 was significantly higher than the C$2.40 expected, marking a 43% increase in profit to C$3.1 billion.

BloombergBig Six banks beat expectations as economy pushes on despite uncertaintyThe Globe and Mail (Toronto)The Globe and Mail (Toronto)

RBC's net income from personal banking reached C$1.96 billion, exceeding the C$1.85 billion forecast. The bank's adjusted return on equity (ROE) stood at 17.8%, while TD's ROE was reported at 14.2%, above its 13% target for 2026. CIBC also demonstrated strong performance with an adjusted ROE of 17.4%. Overall, the six largest Canadian banks reported broad-based revenue growth, driven by capital markets and wealth management activities, despite challenges such as geopolitical tensions and trade uncertainties.

The Globe and Mail (Toronto)

The earnings reports come amid ongoing trade uncertainties, particularly related to the United States-Mexico-Canada Agreement (USMCA). RBC's CEO, Dave McKay, expressed cautious optimism regarding the Canadian economy's resilience, highlighting potential growth opportunities linked to government infrastructure spending. He noted that RBC is actively seeking banking licenses to expand its capital markets and wealth management operations in the Middle East.

The Globe and Mail (Toronto)

Despite the strong earnings, RBC reported an increase in provisions for credit losses to C$1.09 billion, slightly above analysts' expectations. This increase was attributed to a rise in gross impaired loans, particularly in personal banking related to residential mortgages. In contrast, both TD and CIBC reported reductions in their provisions for credit losses, indicating improved client conditions and economic stability.

Big Six banks beat expectations as economy pushes on despite uncertainty

Analysts have raised concerns regarding the implications of rising impaired loans on RBC's financial health. Jefferies Financial Group analyst John Aiken noted that while the quarter's results were generally positive, the increase in impaired loan formations could dampen market reception. Additionally, the banks face challenges from a sluggish housing market and muted personal loan growth.

Big Six banks beat expectations as economy pushes on despite uncertainty

Looking ahead, the banks remain optimistic about growth prospects, particularly in commercial banking, contingent on improved trade conditions and the execution of large-scale infrastructure projects. RBC's McKay emphasized the importance of capital deployment in driving economic growth, while CIBC's executives expressed confidence in the strength of their loan portfolios despite ongoing trade headwinds.

The Globe and Mail (Toronto)

• “A strong quarter for RBC across all our businesses,” — Dave McKay, CEO, Royal Bank of Canada

Bloomberg

• “performance remains stable and resilient” — Frank Guse, Chief Risk Officer, Canadian Imperial Bank of Commerce

The Globe and Mail (Toronto)

• “We expect the rate of growth in U.S. capital markets will continue to outpace Canada and other regions over the medium term,” — Harry Culham, CEO, Canadian Imperial Bank of Commerce

Big Six banks beat expectations as economy pushes on despite uncertainty

This first quarter has set a positive tone for Canada's banking sector, showcasing resilience and adaptability in the face of economic challenges.

The Globe and Mail (Toronto)