Canadian Banks Q1 Earnings: What Investors Need to Know

BMO Financial Group reports $2.14B Q1 profit, up from $1.29B a year ago

BMO Financial Group reported net income of $2.14 billion for the quarter ended Jan. 31, a marked improvement from $1.29 billion in the same quarter last year. The bank said the increase was driven by stronger performance in wealth management and capital markets.

On a per-share basis, profit came to $2.83 per diluted share, compared with $1.73 a year earlier. Revenue rose to $9.27 billion from $7.67 billion the prior year. Provision for credit losses increased to $1.01 billion, up from $627 million a year earlier, reflecting a more cautious credit outlook.

Adjusted earnings were $3.04 per share, up from $2.56 per share a year earlier, topping average analyst expectations of $2.41 per share, according to LSEG Data & Analytics. CEO Darryl White said the quarter showed broad-based revenue growth and positive operating leverage across the bank’s operating groups.

BMO’s Canadian personal and commercial banking unit earned $894 million in the quarter, slightly below last year’s $921 million. U.S. personal and commercial banking earned $580 million, up from $560 million, while wealth management contributed $369 million versus $240 million a year earlier. The capital markets division posted $587 million, up from $393 million.

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Scotiabank says tariff fears are causing borrowers to delay decisions but risks remain manageable

Scotiabank reported that the threat of tariffs has made some businesses and consumers hesitant to borrow or invest, creating a pause in activity that has affected loan demand. The bank modestly increased provisions for credit losses this quarter but held off on a more significant build given the uncertainty around potential tariff measures.

Chief risk officer Phil Thomas noted it is difficult to act on headlines. If tariffs are implemented, Scotiabank said it could add materially to provisions in the next quarter, but it believes any impact would be meaningful yet manageable. The bank ended the quarter with a capital buffer of 15.1%, well above the regulatory minimum of 11.5%.

Net income for the quarter was $993 million, down from $2.20 billion a year earlier. Results included a $1.36-billion impairment tied to the sale of businesses in Colombia, Costa Rica and Panama. Revenue rose to $9.37 billion from $8.43 billion. On an adjusted basis, the bank reported $1.76 per share, above analysts’ average estimate of $1.65 per share.

Segment results showed Canadian banking net income of $913 million (down from $973 million), international banking at $651 million (down from $713 million), global wealth management up to $407 million from $330 million, and global banking and markets rising to $517 million from $388 million.

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National Bank reports $997M Q1 profit, up from $922M a year earlier

National Bank of Canada reported first-quarter net income of $997 million, an increase from $922 million a year earlier. Earnings per diluted share rose to $2.78 from $2.59. Revenue climbed to $3.18 billion from $2.71 billion, supported by strength in wealth management and financial markets.

Provisions for credit losses rose to $254 million from $120 million. Excluding items related to the acquisition of Canadian Western Bank, adjusted earnings were $2.93 per share, beating the average analyst expectation of $2.65 per share, according to LSEG Data & Analytics. CEO Laurent Ferreira said the results reflected solid execution across diversified business segments.

Wealth management generated $242 million in profit, up from $196 million, and financial markets contributed $417 million versus $308 million a year earlier. Personal and commercial banking net income decreased to $290 million from $339 million, largely due to higher credit provisions. The bank completed its acquisition of Canadian Western Bank on Feb. 3, which management views as a pillar of its domestic growth strategy.

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CIBC reports $2.17B Q1 profit, up from $1.7B a year earlier

CIBC posted net income of $2.17 billion for the quarter, up from $1.73 billion a year earlier. Earnings per diluted share were $2.19 versus $1.77 the prior year. Revenue rose to $7.28 billion from $6.22 billion.

The bank’s provision for credit losses was $573 million, slightly below last year’s $585 million. On an adjusted basis, CIBC reported $2.20 per diluted share, beating the average analyst forecast of $1.97 per share. CEO Victor Dodig said the quarter demonstrated the benefits of a client-focused strategy that continues to generate consistent results.

Segment performance included Canadian personal and business banking at $765 million (up from $714 million), Canadian commercial banking and wealth management at $591 million (up from $523 million), and U.S. commercial banking and wealth management at $256 million, an improvement from a $8 million loss a year earlier. Capital markets earnings rose to $619 million from $522 million.

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RBC’s profit rises despite credit hits as economy holds up

RBC reported higher impaired loans and increased provisions for potential losses, but overall results were supported by stronger-than-expected economic activity and higher trading revenue. Gross impaired loans rose to $7.88 billion, a 34% increase from the prior quarter, in part due to a single large account in the utility sector. Provisions for credit losses increased to $1.05 billion, up from $813 million a year earlier.

Management said the rise in impaired loans was largely anticipated given the economic cycle, and emphasized the bank’s preparedness. The bank’s capital markets unit benefited from elevated trading, producing $1.43 billion in earnings, up from $1.15 billion the previous year. Overall net income was $5.13 billion, or $3.54 per diluted share, compared with $2.50 per share a year earlier. Adjusted earnings were $3.62 per diluted share, above analyst expectations.

RBC highlighted the potential impact of tariffs and trade uncertainty on client confidence and investment decisions, but executives noted the economy held up well during the quarter. Segment results included personal banking at $1.68 billion (up from $1.35 billion), commercial banking at $777 million (up from $650 million), wealth management at $980 million (up from $664 million), and insurance at $272 million (up from $220 million).

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TD Bank Group reports flat Q1 profit as it focuses on turnaround

TD Bank Group reported a roughly flat quarter as it continues a strategic turnaround and anti-money-laundering remediation. CEO Raymond Chun said the strategic review is progressing, with efforts focused on restructuring operations, reducing costs and strengthening controls. These initiatives have driven higher expenses in the near term, including a 12% adjusted increase in costs year over year and guidance for elevated expenses in the coming quarter as remediation investments continue.

Net income was $2.79 billion for the quarter, slightly below last year’s $2.82 billion, while diluted earnings per share were $1.55. Revenue rose to $14.05 billion from $13.71 billion. The bank’s provision for credit losses increased to $1.21 billion from $1.00 billion. On an adjusted basis, TD reported $2.02 per diluted share, above the average analyst estimate of $1.96.

As part of its strategic moves, TD announced the sale of its full stake in The Charles Schwab Corp., with proceeds expected to fund $8 billion of share buybacks and other corporate priorities. The bank is also trimming U.S. assets to comply with a U.S. asset cap tied to its previous regulatory settlement, including reducing borrowings and selling a mortgage portfolio. Management said these measures aim to position TD for a more normalized profile in 2026.

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Laurentian Bank reports $38.6M Q1 profit, up from $37.3M a year earlier

Laurentian Bank of Canada reported net income of $38.6 million for the quarter ended Jan. 31, modestly higher than the $37.3 million earned a year earlier. Earnings per diluted share rose to $0.76 from $0.75. Revenue declined to $249.6 million from $258.3 million, while provisions for credit losses totaled $15.2 million, down from $16.9 million a year earlier.

CEO Éric Provost said a focused strategic approach is beginning to pay off, and that strong liquidity and capital levels position the bank to handle macroeconomic and geopolitical uncertainty. On an adjusted basis, Laurentian reported $0.78 per diluted share, slightly above analysts’ expectations of $0.76.

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