Canada’s Banks Q1 Earnings Jump: What Investors Should Know

Here’s a round-up of this week’s key results from major Canadian banks and financial firms, compiled to help investors compare earnings, revenue and analyst expectations.

• Scotiabank
• EQB
• National Bank
• BMO Financial Group
• RBC
• TD Bank Group

Scotiabank reports $2.3B Q1 profit, up from $993M a year earlier

The Bank of Nova Scotia posted first-quarter net income of $2.30 billion for the quarter ended Jan. 31, a substantial increase from $993 million a year earlier. That equates to $1.73 per diluted share, compared with 66 cents per diluted share in the same period last year.

Revenue rose to $9.65 billion, driven by higher net interest and non-interest income. The bank recorded a provision for credit losses of $1.18 billion for the quarter, slightly higher than the prior year’s $1.16 billion. On an adjusted basis, Scotiabank reported earnings of $2.05 per diluted share, above the average analyst estimate of $1.95 per share, according to LSEG Data & Analytics.

EQB reports lower first-quarter adjusted net income of $85.2M, raises dividend

EQB Inc., the parent of EQ Bank, reported adjusted net income of $85.2 million for the quarter, down from $116.2 million a year earlier. Adjusted earnings per share were $2.26, compared with $2.98 in the prior-year period. Adjusted net interest income was $263.4 million, modestly lower than the previous year’s $270.6 million, and adjusted revenue fell to $306.8 million from $322.6 million.

CEO Chadwick Westlake said the company is focused on completing its acquisition of PC Financial and on future partnership opportunities with Loblaw Companies. Despite the year-over-year earnings decline, EQB announced a 16% increase in its dividend, raising the payout to 59 cents per common share.

National Bank reports $1.25B Q1 profit, up from $997M a year earlier

National Bank of Canada reported first-quarter profit of $1.25 billion for the quarter ended Jan. 31, compared with $997 million a year earlier. Earnings per diluted share were $3.08, up from $2.78. Revenue rose to $3.89 billion, reflecting the contribution from the recent acquisition of Canadian Western Bank.

The bank’s provision for credit losses decreased slightly to $244 million from $254 million a year earlier. On an adjusted basis, National Bank reported $3.25 per diluted share, beating the average analyst expectation of $2.99 per share, according to LSEG Data & Analytics.

BMO Financial Group reports $2.49B Q1 profit, up from $2.14B a year earlier

BMO reported a first-quarter profit of $2.49 billion for the quarter ended Jan. 31, up from $2.14 billion in the prior-year period. That equates to $3.39 per diluted share, compared with $2.83 per diluted share a year earlier. Revenue climbed to $9.82 billion.

The bank said provisions for credit losses fell to $746 million from $1.01 billion year over year. On an adjusted basis, BMO reported earnings of $3.48 per diluted share, exceeding the average analyst forecast of $3.20 per share, according to LSEG Data & Analytics.

RBC reports $5.79B first-quarter profit, up from $5.13B a year earlier

Royal Bank of Canada reported first-quarter net income of $5.79 billion for the quarter ended Jan. 31, rising from $5.13 billion a year earlier. That represents $4.03 per diluted share, up from $3.54 per diluted share in the previous year.

Revenue was $17.96 billion. RBC’s provision for credit losses increased slightly to $1.09 billion from $1.05 billion. Adjusted earnings were $4.08 per diluted share, above the average analyst estimate of $3.85 per share from LSEG Data & Analytics.

TD reports $4.04B Q1 profit, up from $2.79B a year earlier

TD Bank Group reported first-quarter profit of $4.04 billion for the quarter ended Jan. 31, compared with $2.79 billion a year earlier. That works out to $2.34 per diluted share, up from $1.55 in the same quarter last year. Revenue increased to $16.59 billion.

TD’s provision for credit losses decreased to $1.04 billion from $1.21 billion. On an adjusted basis, the bank reported $2.44 per diluted share, ahead of the average analyst estimate of $2.26 per share from LSEG Data & Analytics.

Summary and investor takeaways

This week’s results show that most of Canada’s large banks delivered year-over-year profit growth in the first quarter, with revenue gains and generally manageable provisions for credit losses. Several banks reported adjusted earnings that beat average analyst expectations. EQB was an exception, with lower adjusted net income but an increased dividend reflecting management confidence in cash flow and future partnerships.

For investors, key items to watch across upcoming quarters include credit loss provisions as economic conditions evolve, the performance impact of recent acquisitions, and interest rate-driven net interest income. Comparing adjusted earnings per share to analyst estimates can help identify which banks are outperforming expectations and where momentum may be building.

About this roundup

This summary compiles reported first-quarter results from major Canadian banks and EQB. Figures reflect company-reported results for the quarter ended Jan. 31 and comments from public disclosures. Analyst expectations cited are from LSEG Data & Analytics where available.

Read more news

• Stock news for investors: Mixed Q4 results with big profit gains for Enbridge, Nutrien, and Cenovus
• How often should you rebalance?
• What happens when you inherit an IRA or 401(k)?
• What replacing my tires taught me about planning for retirement