Capital markets gains and credit loss provisions reshape results for Canada’s Big Six banks
Four of Canada’s Big Six banks beat analyst expectations in the second quarter ending April 30, as they navigated economic uncertainty with higher loan loss provisions and rising capital buffers, according to The Globe and Mail.
Toronto-Dominion Bank, Bank of Montreal, National Bank of Canada, and Canadian Imperial Bank of Commerce posted stronger-than-expected results, while Royal Bank of Canada and Bank of Nova Scotia missed estimates.
As credit stress builds among Canadian consumers and businesses, analysts were watching for signs of resilience, capital strength and margin trends across core banking segments.
Q2 2025 results: selected metrics by bank
Toronto-Dominion Bank (TD Bank)
|
Metric |
Q2 2025 |
Q2 2024 |
|
Net income |
$11.1bn ($6.27/share) |
$2.6bn ($1.35/share) |
|
Adjusted EPS |
$1.97 |
— |
|
Analysts’ estimate (adjusted EPS) |
$1.78 |
— |
|
Provisions for credit losses |
$1.34bn (incl. $395m performing loans) |
$1.07bn |
|
Dividend |
$1.05/share |
— |
TD set aside fewer provisions than analysts expected. While total PCLs rose year-over-year, impaired loan provisions fell slightly.
The bank is cutting staff by 2 percent and working to address deficiencies in anti-money-laundering practices.
Some cuts will occur through attrition, according to CFO Kelvin Tran.
Bank of Montreal (BMO)
|
Metric |
Q2 2025 |
Q2 2024 |
|---|---|---|
|
Net income |
$1.96bn ($2.50/share) |
$1.87bn ($2.36/share) |
|
Adjusted EPS |
$2.62 |
— |
|
Analysts’ estimate (adjusted EPS) |
$2.55 |
— |
|
Provisions for credit losses |
$1.05bn (incl. $289m performing loans) |
$705m |
|
Dividend |
$1.63/share (+$0.04) |
— |
BMO exceeded earnings forecasts despite elevated PCLs, driven by rising risk in commercial and unsecured consumer lending in Canada.
Revenue climbed 9 percent to $8.68bn, while expenses increased 4 percent to $5.02bn, largely from tech and employee-related costs.
National Bank of Canada
|
Metric |
Q2 2025 |
Q2 2024 |
|
Net income |
$896m ($2.17/share) |
$906m ($2.54/share) |
|
Adjusted EPS |
$2.85 |
— |
|
Analysts’ estimate (adjusted EPS) |
$2.40 |
— |
|
Provisions for credit losses |
$545m (incl. $315m performing loans, $230m CWB-related) |
$254m (prior quarter) |
|
Dividend |
$1.18/share (+$0.04) |
— |
National beat expectations on the back of capital markets performance and strong capital ratios. The bank attributed a portion of its PCL increase to the Canadian Western Bank acquisition.
Revenue rose 33 percent to $3.65bn, with a 32 percent rise in expenses to $1.94bn.
CEO Laurent Ferreira cited the bank’s “strong capital position” amid global uncertainty.
Canadian Imperial Bank of Commerce (CIBC)
|
Metric |
Q2 2025 |
Q2 2024 |
|---|---|---|
|
Net income |
$2bn ($2.04/share) |
— |
|
Adjusted EPS |
$2.05 |
— |
|
Analysts’ estimate (adjusted EPS) |
$1.90 |
— |
|
Provisions for credit losses |
$605m (incl. $142m performing loans) |
$67m |
|
Dividend |
$0.97/share |
— |
CIBC beat analyst expectations, with a 15 percent profit increase. Revenue grew 14 percent to $7bn and expenses rose 9 percent to $3.8bn, driven by performance-based compensation.
Wealth Professional reported that the bank named Harry Culham as its incoming CEO, with Victor Dodig set to retire in October.
Royal Bank of Canada (RBC)
|
Metric |
Q2 2025 |
Q2 2024 |
|---|---|---|
|
Net income |
$4.39bn ($3.02/share) |
$3.95bn ($2.74/share) |
|
Adjusted EPS |
$3.12 |
— |
|
Analysts’ estimate (adjusted EPS) |
$3.20 |
— |
|
Provisions for credit losses |
$1.42bn (incl. $568m performing loans) |
$920m |
|
Dividend |
$1.54/share (+$0.06) |
— |
Despite an 11 percent rise in profit, RBC missed analyst targets. Integration costs from its HSBC Bank Canada acquisition weighed on results.
The bank plans to repurchase 35 million shares and will require employees to return to offices four days a week this fall, according to earlier reporting from The Globe and Mail.
Bank of Nova Scotia (Scotiabank)
|
Metric |
Q2 2025 |
Q2 2024 |
|---|---|---|
|
Net income |
$2.03bn ($1.48/share) |
$2.09bn ($1.57/share) |
|
Adjusted EPS |
$1.52 |
— |
|
Analysts’ estimate (adjusted EPS) |
$1.57 |
— |
|
Provisions for credit losses |
$1.4bn (incl. $346m performing loans) |
$1bn |
|
Dividend |
$1.10/share (+$0.04) |
— |
Scotiabank missed expectations as higher provisions cut into Canadian banking earnings, down 31 percent to $613m.
Loan balances rose 4 percent, while other divisions—international, capital markets, and wealth—delivered stronger results.
The bank also plans to buy back 20 million shares.
Four of the six banks raised their dividends this quarter and posted stronger buffers against anticipated credit stress, signalling adjustments for a more cautious economic outlook heading into the second half of 2025.
Sources: The Globe and Mail; The Canadian Press; the press releases of the banks; Wealth Professional
