Canadian Banks’ Q1 Earnings: A Comprehensive Analysis
This week, the six largest banks in Canada unveiled their earnings for the first quarter of 2026, covering the period that ended on January 31. All major lenders reported profits that exceeded analysts’ expectations, reflecting a resilient financial performance amidst external economic pressures.
Overview of Canadian Banks’ Q1 Earnings
Analysts predicted a rise in profits, and the banks delivered by overcoming apprehensions related to the U.S. trade conflict and rising provisions for credit losses. Here’s a detailed summary of each bank’s performance in Q1 2026.
Bank of Nova Scotia (Scotiabank)
- Earnings: $2.29 billion ($1.73 per share)
- Previous Year Earnings: $993 million ($0.66 per share)
- Adjusted EPS: $2.05 per share
- Analysts’ Expectations: $1.95 per share
- Dividend: $1.10 per share
Scotiabank’s profit increased due to strong performance across its sectors, despite a minimal loan growth and tariffs. The bank allocated $1.18 billion for credit losses, slightly higher than last year.
Bank of Montreal (BMO)
- Earnings: $2.49 billion ($3.39 per share)
- Previous Year Earnings: $2.14 billion ($2.83 per share)
- Adjusted EPS: $3.48 per share
- Analysts’ Expectations: $3.21 per share
- Dividend: $1.67 per share
BMO experienced a profit surge from $2.14 billion to $2.49 billion, capitalizing on a restructuring of its U.S. operations. The bank’s return-on-equity stood at 12.4 percent, below its goal of 15 percent. It set aside $746 million in provisions for credit losses, down from $1.01 billion last year.
National Bank of Canada
- Earnings: $1.25 billion ($3.08 per share)
- Previous Year Earnings: $997 million ($2.78 per share)
- Adjusted EPS: $3.25 per share
- Analysts’ Expectations: $2.99 per share
- Dividend: $1.24 per share
National Bank’s profit grew significantly, driven by the acquisition of Canadian Western Bank. The bank allocated $244 million for credit losses, slightly down from last year’s provisions.
Royal Bank of Canada (RBC)
- Earnings: $5.8 billion ($4.03 per share)
- Previous Year Earnings: $5.13 billion ($3.54 per share)
- Adjusted EPS: $4.08 per share
- Analysts’ Expectations: $3.84 per share
- Dividend: $1.64 per share
RBC posted a 13 percent increase in profit, supported by growth in personal banking and wealth management. It made provisions of $1.09 billion for credit losses, marking a modest increase from previous quarters.
Canadian Imperial Bank of Commerce (CIBC)
- Earnings: $3.1 billion ($3.21 per share)
- Previous Year Earnings: $2.17 billion ($2.19 per share)
- Adjusted EPS: $2.76 per share
- Analysts’ Expectations: $2.40 per share
- Dividend: $1.07 per share
CIBC’s earnings rose, driven by solid contributions from personal and business banking. The bank recorded a notable profit from capital markets, with total earnings significantly exceeding forecasts.
Toronto-Dominion Bank (TD Bank)
- Earnings: $4.04 billion ($2.34 per share)
- Previous Year Earnings: $2.79 billion ($1.55 per share)
- Adjusted EPS: $2.44 per share
- Analysts’ Expectations: $2.26 per share
- Dividend: $1.08 per share
TD witnessed a significant profit increase of 45 percent. The bank faced restructuring costs related to past compliance issues, setting aside $1.04 billion for credit losses during this period.
Conclusion
The first quarter of 2026 marked impressive earnings performance across Canada’s leading banks. With significant profit increases and effective management of credit loss provisions, these banks illustrate resilience in challenging economic climates.
