RBC, TD, CIBC report earnings as wealth management continues to perform

Three more of Canada's big banks have reported their quarterly earnings this morning (May 28) revealing diverging institutional fortunes.

Royal Bank of Canada posted a blockbuster quarter underpinned by wealth and capital markets strength, TD Bank Group signaled a slow climb back from regulatory turmoil, and CIBC delivered double-digit profit growth across all four of its business units. The reports follow BMO and Scotiabank's quarterly results, resleased earlier this week. 

Royal Bank of Canada

RBC's Wealth Management division posted net income of $1.185 billion for the quarter ended April 30, 2026, up $256 million or 28% from a year earlier.

The gain was powered by rising fee-based client assets driven by market appreciation and net inflows, both of which also lifted variable compensation. Higher net interest income from loan and deposit growth, combined with wider spreads, added to the result.

Sequentially, however, wealth earnings fell $110 million or 8%, dragged down by shifts in the fair value of seed capital investments, seasonally lower performance fees, and a swing in provisions for credit losses from releases to charges.

Capital Markets net income reached $1.484 billion, up $282 million or 23% year-over-year, fueled by stronger results across Global Markets and Corporate & Investment Banking. Higher taxes reflecting a change in earnings mix and elevated compensation tied to better results partially offset those gains.

Quarter-over-quarter, Capital Markets earnings were essentially flat as improved equity and debt origination across all regions offset lower fixed income trading revenue.

Across the broader franchise, RBC earned $5.5 billion in net income, up 25% from a year ago, and reported diluted earnings per share of $3.85, up 27%. Adjusted net income came in at $5.6 billion and adjusted diluted EPS at $3.90. Pre-provision, pre-tax earnings of $8.0 billion rose $1.1 billion or 15% from the prior year.

The bank's CET1 ratio stood at 13.5%, and it returned $4.0 billion to shareholders in the quarter through buybacks and dividends. RBC also declared a dividend increase of $0.12 per share to $1.76, a 7% jump, and announced plans to repurchase up to 45 million common shares.

Personal Banking earned $1.870 billion, up 17% year-over-year on higher net interest income and lower provisions. Commercial Banking posted $854 million, up 43% from the year-ago period when provisions on performing loans were elevated by tariff-related trade disruption impacts. Total provisions for credit losses fell 36% year-over-year to $912 million.

"In a world that's constantly changing and becoming more complex, our commitment to delivering trusted advice and helping clients navigate risk continues to produce exceptional outcomes," said Dave McKay, President and Chief Executive Officer of Royal Bank of Canada. "Our second quarter earnings showcase our consistency in delivering premium profitability and long-term shareholder value, underpinned by solid growth across our diversified businesses and balance sheet strength."

TD Bank Group

TD's Wealth Management and Insurance division reported net income of $837 million, up 18% year-over-year, driven by record assets under administration, higher insurance premiums earned, and deposit volume growth.

The bank described the result as all-time high earnings for the segment. In the quarter, TD launched a redesigned TD Easy Trade app targeting self-directed investors, and TD Insurance deployed a generative AI-powered virtual assistant — the first such tool from a Canadian home and auto insurer, according to the bank.

Wholesale Banking, TD's capital markets operation, earned $612 million in net income, up 46% on a reported basis and 38% on an adjusted basis year-over-year. Revenue for the segment hit $2.393 billion, up 12%, with the bank citing strength across equities, capital markets, and lending. Return on equity for Wholesale Banking reached 14.5%.

Overall, TD's reported net income was $4.251 billion and reported diluted EPS was $2.43 — figures that look weak against the year-ago quarter's $11.1 billion and $6.27, but those prior-year numbers were inflated by an $8.975 billion gain from the sale of TD's stake in The Charles Schwab Corporation. Stripped of that windfall, adjusted net income of $4.168 billion and adjusted diluted EPS of $2.38 were up 15% and 21%, respectively. The bank's CET1 ratio was 14.3%.

Canadian Personal and Commercial Banking recorded $1.925 billion in net income, up 15% year-over-year on loan and deposit volume growth and wider margins, with the segment achieving record second-quarter revenue and earnings. US Banking reported net income of $813 million (US$595 million), up sharply year-over-year; on an adjusted basis the segment earned $960 million (US$702 million), up 8%.

TD continues to operate under the weight of U.S. Bank Secrecy Act and anti-money laundering consent orders imposed in late 2024 following guilty pleas entered with the Department of Justice.

The bank said it expects to spend approximately US$500 million in fiscal 2026 on remediation and governance and control enhancements. A suspicious activity report lookback required under the OCC consent order is expected to be completed in calendar 2027, with substantial milestones still outstanding in both 2026 and 2027.

"This was another strong quarter for TD. We drove record Q2 earnings in Canadian Personal and Commercial Banking, all-time high earnings in Wealth Management and Insurance and Wholesale Banking, and we accelerated momentum in U.S. Banking," said Raymond Chun, Group President and CEO, TD Bank Group. "Our bank has momentum, and we are making important investments in talent, innovation, AI and client experience, as we fundamentally restructure our cost base to drive performance and continue winning."

CIBC

CIBC's Canadian Commercial Banking and Wealth Management segment earned $614 million in the second quarter, up $65 million or 12% from a year earlier.

Wealth management revenue rose on higher fee-based income tied to elevated average assets under administration and assets under management, fueled by market gains, along with increased commission revenue from greater client activity and higher net interest margins. Adjusted pre-provision, pre-tax earnings for the combined segment came in at $958 million, up $151 million year-over-year.

The US Commercial Banking and Wealth Management segment earned $260 million (US$190 million), up 56% in U.S. dollar terms from the year-ago period, with the improvement driven primarily by a lower provision for credit losses and higher revenue. Wealth management revenue grew on higher average assets under management attributable to market appreciation and wider loan margins. Adjusted pre-provision, pre-tax earnings for US operations were $353 million (US$258 million), up 10% in U.S. dollars year-over-year.

Capital Markets posted net income of $792 million, up $226 million or 40% from a year ago, on higher revenue across global markets — including stronger equities and fixed income trading, higher financing revenue, and growth in advisory fees and equity underwriting — combined with a provision reversal versus a provision charge in the same period last year. Adjusted pre-provision, pre-tax earnings for the segment rose 28%.

CIBC reported net income of $2.465 billion, up 23% year-over-year, and diluted EPS of $2.53, up 24%. Adjusted net income was $2.471 billion and adjusted diluted EPS was $2.54. Total revenue reached $8.006 billion, up 14% from the prior year. The bank's CET1 ratio improved to 13.6%, up from 13.4% at the end of the prior quarter.

Canadian Personal and Business Banking earned $846 million, up 15% from a year ago, on higher revenue from net interest margin expansion and loan growth, partially offset by increased provisions for credit losses and higher expenses tied to technology investment. Provisions for credit losses across the enterprise were $605 million, comparable to the year-ago quarter.

CIBC also announced an agreement to divest its 91.67% interest in CIBC Caribbean to The Bank of N.T. Butterfield & Son for approximately US$1.6 billion in combined cash and stock, a transaction the bank said will allow it to reallocate capital toward North American growth. The deal is expected to add 24 basis points to CIBC's CET1 ratio upon close, anticipated in the first half of 2027 pending regulatory approvals.

"In the second quarter of 2026, we delivered strong financial results through the disciplined execution of our client-focused strategy, including double-digit growth in net income and a higher return on equity compared to a year ago, driven by robust results across all of our business units," said Harry Culham, CIBC President and Chief Executive Officer.