Weekly "Focus" and You can Bank on it

As is often the case, the Canadian banks reported very strong quarterly results sending their share prices to new all-time highs. Earnings growth was positively impacted by especially good results from their capital markets and wealth management divisions. As well, investors welcomed the fact that the banks started to reduce loan loss provisions reflecting slightly better loan performance. Royal Bank led the way with quarterly earnings of more than $5 billion and over the past 12 months the bank’s earnings have now passed the $19 billion threshold. Royal Bank’s share gains allowed it to wrestle the crown away once again from Shopify as Canada’s largest company by market value.

 

	Return in 2025	Dividend Yield
Bank of Montreal (BMO)	+17.7%	4.0%
Bank of Nova Scotia* (BNS)	+10.3%	5.2%
CIBC* (CM)	+14.2%	3.7%
National Bank* (NA)	+10.4%	3.3%
Royal Bank* (RY)	+15.4%	3.1%
TD Bank* (TD)	+37.2%	4.0%

Sources: FactSet, Values as of August 27, 2025

 

This week’s "Focus" from our economics team is attached.

 

Have a great long weekend,

 

Brad

Senior Portfolio Manager and Senior Investment Advisor