Category: Uncategorized

Executive Summary

All six major Canadian banks (RBC, TD, Scotiabank, BMO, CIBC, National Bank) reported Q2 2026 earnings that beat analyst expectations with year-over-year profit growth. Key drivers: strong Canadian retail/commercial banking, capital markets performance, and lower provisions for credit losses (PCLs) versus the prior year. Five banks raised dividends; RBC and CIBC announced share buybacks. Canadian bank stocks are up ~16% YTD, outperforming the TSX.

Key Results (Q2 2026):

• RBC: $5.5B profit ($3.85/share, adj. $3.90 vs. $3.77 est.), +25% YoY. ROE 17.2%. PCL $912M (down from $1.4B). Dividend ↑ to $1.76.
• TD: Adj. $2.38/share (vs. $2.26 est.). Canadian banking strong (+15% profit). PCL $1.0B (down). Dividend ↑ to $1.12. US remediation ongoing.
• Scotiabank: $2.6B ($2.00/share, adj. $2.02 vs. $1.93 est.). PCL $1.2B. Dividend ↑ to $1.14. ROE improving toward 14% target in 2027.
• BMO: $2.6B ($3.53/share, adj. $3.67 vs. $3.41 est.), +34% YoY. Strong capital markets & US. PCL $739M. Dividend ↑ to $1.71. US ROE target 12% by 2028.
• CIBC: $2.47B ($2.53/share, adj. $2.54 vs. $2.42 est.), +23% YoY. Capital markets +40%. PCL flat at $605M. Dividend unchanged at $1.07. Selling Caribbean ops for ~US$1.6B.
• National Bank: $1.23B ($3.06/share, adj. $3.23 vs. $3.14 est.). Strong ROE 15.9%. PCL sharply down to $233M (post-CWB acquisition effects). Dividend ↑ to $1.32.

Review & Comments:

• Resilient performance: Banks continue to show strength despite economic uncertainty and USMCA trade risks. Lower PCLs (reflecting better-than-expected credit quality) were a major tailwind across the board.
• Segment highlights: Canadian personal & commercial banking remains solid. Capital markets performed well (notably RBC, BMO, CIBC). US operations mixed — BMO and TD focusing on improvement/remediation.
• Efficiency & strategy: Expense growth controlled (e.g., Scotiabank +2%). National Bank advancing CWB integration with cost savings. CIBC streamlining via Caribbean exit and management changes.
• Shareholder returns: Aggressive dividends and buybacks signal confidence and excess capital.
• Outlook context: Results support the sector’s YTD outperformance. Risks remain around economic slowdown, trade tensions, and higher-for-longer rates, but current provisioning and earnings suggest banks are well-positioned.

Bottom line: Solid quarter with beats, margin stability, and cautious optimism. No major red flags in credit or operations.

DETAILS:

Canada’s biggest banks reported their second-quarter earnings this week, covering the three months that ended April 30.

Bank of Nova Scotia, Bank of Montreal and National Bank of Canada kicked off the second-quarter earnings season on Wednesday, followed by Royal Bank of Canada, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank on Thursday.

All six banks reported higher profit that beat analysts’ estimates and all except CIBC also raised their quarterly dividends. Analysts expected the lenders to post a round of resilient profits, bucking economic uncertainty and looming trade pressure ahead of talks to renew the North American trade agreement, USMCA.

Canadian bank stocks have surged 16 per cent this year on the optimism surrounding the sector’s ability to withstand economic uncertainty, outperforming the S&P/TSX Composite Index’s 8-per-cent climb.

Here’s a breakdown of the big banks’ second-quarter results.

Bank of Nova Scotia (Scotiabank)

• Earnings Q2 2026: $2.6-billion ($2.00 per share)
• Earnings Q2 2025: $2-billion ($1.48 per share)
• Adjusted EPS: $2.02 per share
• Analysts’ expectations: $1.93 per share (adjusted)
• Dividend: $1.14 per share

Bank of Nova Scotia BNS-T -1.20%decrease reported higher second-quarter profit that beat analysts’ estimates on a boost from its Canadian banking unit as the lender seeks to bolster its profitability.

Scotiabank earned $2.6-billion, or $2.00 per share, in the three months that ended April 30, compared with $2-billion, or $1.48 per share, in the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $2.02 per share. That edged out the $1.93 per share analysts expected, according to data from Bloomberg.

Last quarter, Scotiabank said it expects to hit its target of 14-per-cent return on equity in 2027, a year earlier than expected. In the second quarter, Scotiabank posted an adjusted return on equity of 13.2 per cent.

The bank raised its quarterly dividend by 4 cents to $1.14 per share.

In the quarter, Scotiabank set aside $1.2-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That was higher than analysts anticipated, and included $1.1-billion against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, Scotiabank set aside $1.4-billion in provisions.

Total revenue rose 8 per cent in the quarter to $9.8-billion. But expenses increased 2 per cent to $5.2-billion, which the bank said was driven by higher staffing, technology, advertising and business development costs.

Bank of Montreal (BMO)

• Earnings Q2 2026: $2.6-billion ($3.53 per share)
• Earnings Q2 2025: $1.96-billion ($2.50 per share)
• Adjusted EPS: $3.67 per share
• Analysts’ expectations: $3.41 per share (adjusted)
• Dividend: $1.71 per share

Bank of Montreal BMO-T -0.82%decrease reported higher second-quarter profit that topped analysts’ estimates on a boost from its capital markets business and its division in the United States.

BMO earned $2.6-billion, or $3.53 per share, in the three months that ended April 30, up 34 per cent from the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $3.67 per share. That beat the $3.41 per share analysts expected, according to data from Bloomberg.

In March, BMO unveiled its new strategy to revive its U.S. business and boost its return on equity – a closely watched measure of profitability. In 2024, BMO set a goal of improving its ROE to 15 per cent by the end of 2027.

The U.S. division – which makes up 40 per cent of BMO’s earnings – is weighing on the bank’s profitability. BMO set a target to improve the unit’s ROE from 8 per cent to 12 per cent by 2028.

In the second quarter, BMO’s return on equity edged higher to 13 per cent and8.6per cent in its U.S. business.

The bank raised its quarterly dividend by 4 cents to $1.71 per share.

In the quarter, BMO set aside $739-million in provisions for credit losses. That was lower than analysts expected and included $734-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

Revenue rose 10 per cent in the quarter to $9.6-billion, while expenses increased 6 per cent to $5.3-billion.

National Bank of Canada

• Earnings Q2 2026: $1.23-billion ($3.06 per share)
• Earnings Q2 2025: $896-million ($2.17 per share)
• Adjusted EPS: $3.23 per share
• Analysts’ expectations: $3.14 per share (adjusted)
• Dividend: $1.32 per share

National Bank of Canada NA-T +0.91%increase reported higher profit for the fiscal second quarter and raised its quarterly dividend as lower loan loss reserves and strong performance from capital markets as well as retail banking boosted the lender’s earnings.

National Bank earned $1.23-billion, or $3.06 a share, for the quarter that ended April 30. In the same quarter last year, the bank earned $896-million, or $2.17 a share.

After adjusting to exclude certain items, National Bank said it earned $3.23 a share. That beat analysts’ consensus expectation for profit of $3.14 a share, according to Bloomberg data.

Earnings in the second fiscal quarter last year were affected by National Bank’s acquisition of Canadian Western Bank (CWB), which added to its loan-loss reserves.

The Montreal-based bank is expecting to reap about $300-million in annual savings on costs and funding once it has merged CWB’s operations with its own. As of April 30, the bank said it has achieved $215-million so far, and is on track to reach $270-million by the end of the fiscal year.

National Bank raised its quarterly dividend by 8 cents to $1.32 per share. That was a larger increase than the 5 cents some analysts had expected.

Provisions for credit losses was $233-million, down from $545-million a year earlier.

A lower provision of $38-million on performing loans, which are still being paid back, largely accounted for the decrease. In the fiscal second quarter last year, the bank took an initial provision of $315-million, mostly because of the CWB acquisition.

National Bank’s return on equity was 15.9 per cent. And its key measure of capital reserves – the common equity Tier 1 ratio – was 13.5 per cent, down from 13.7 per cent in the prior quarter as the bank bought back 8.8 million shares so far this fiscal year.

Royal Bank of Canada (RBC)

• Earnings Q2 2026: $5.5-billion ($3.85 per share)
• Earnings Q2 2025: $4.39-billion ($3.02 per share)
• Adjusted EPS: $3.90 per share
• Analysts’ expectations: $3.77 per share (adjusted)
• Dividend: $1.76 per share

Royal Bank of Canada RY-T +0.37%increase posted higher second-quarter profit that beat analysts’ estimates, boosted by a surge in capital markets earnings and lower provisions for sour loans.

RBC’s profit climbed 25 per cent to $5.5-billion, or $3.85 per share, in the three months that ended April 30.

Adjusted to exclude certain items, the bank said it earned $3.90 per share. That topped the $3.77 per share analysts expected, according to Bloomberg data.

The bank raised its quarterly dividend by 12 cents to $1.76 per share. The lender also said it plans to repurchase 45 million of its shares, representing about 3 per cent of its common stock.

RBC has been focused on bolstering its profitability. During fourth-quarter earnings in December, the bank raised its return on equity (ROE) target to 17 per cent or more after surpassing the 16-per-cent goal the bank set at its investor day last year.

In the quarter, the bank posted higher ROE at 17.2 per cent.

RBC set aside $912-million in provisions for credit losses. That was lower than analysts anticipated, and included $899-million against loans the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, RBC set aside $1.4-billion in provisions as it built up reserves ahead of a potential economic downturn.

Canadian Imperial Bank of Commerce (CIBC)

• Earnings Q2 2026: $2.47-billion ($2.53 per share)
• Earnings Q2 2025 $2.01-billion ($2.04 per share)
• Adjusted EPS: $2.54 per share
• Analysts’ expectations: $2.42 per share (adjusted)
• Dividend: $1.07 per share

Canadian Imperial Bank of Commerce CM-T -1.97%decrease reported a 23-per-cent increase in fiscal second-quarter profit that beat analysts’ estimates, and announced a deal to sell its Caribbean division for US$1.6-billion.

Profits were up across each of the bank’s business units in the quarter that ended April 30. Capital markets earnings increased 40 per cent from a year earlier as revenue from trading and investment banking surged, and the bank recovered funds previously earmarked to cover losses on loans.

CIBC earned $2.47-billion, or $2.53 a share, compared with $2.01-billion, or $2.04 a share, in the same quarter last year.

After adjusting for amortization costs, CIBC said it earned $2.54 a share. The consensus estimate among analysts going into the quarter was $2.42 a share, according to Bloomberg.

The bank also announced a plan to buy back up to 30 million shares, or 3.3 per cent of its outstanding share count, over the next year. Its quarterly dividend was unchanged at $1.07 a share.

CIBC said it has reached a deal to sell its 91.67-per-cent stake in CIBC Caribbean to Bermuda-based The Bank of N.T. Butterfield & Son. CIBC will receive US$1-billion in cash and Butterfield shares currently worth US$645-million, and the transaction is expected to close in the first half of 2027.

Chief executive officer Harry Culham also announced the first changes to his senior executive team since he took the helm at the bank last November, creating roles with sole oversight for commercial banking as well as wealth management.

In the second fiscal quarter, CIBC’s provisions for credit losses was unchanged from a year earlier, at $605-million.

Provisions on loans that are past due increased by $85-million, to $548-million, which the bank attributed to “economic pressures” and some seasonal trends.

Toronto-Dominion Bank (TD Bank)

• Earnings Q2 2026: $$4.17 billion ($2.38 per share)
• Earnings Q2 2025: $3.63 billion ($1.97 per share)
• Adjusted EPS: $2.38 per share
• Analysts’ expectations: $2.26 per share (adjusted)
• Dividend: $1.12 per share

Toronto-Dominion Bank TD-T +0.24%increase posted earnings that topped analysts’ expectations on higher profit from its Canadian banking and capital markets units as the lender set aside fewer provisions for sour loans.

The bank said it earned $2.38 a share on an adjusted basis for the second quarter ended April 30. That beat the $2.26 a share analysts estimated, according to Bloomberg data.

The bank raised its quarterly dividend 4 cents to $1.12 a share. TD has also been buying back shares as it sits on a substantial amount of excess capital.

TD is betting on its Canadian businesses to prop up its growth ambitions as it cuts costs and remediates its anti-money-laundering failures in the United States.

Canadian personal and commercial banking profit was $1.93-billion, up 15 per cent from a year earlier on higher revenue and lower provisions. Loan balances were up 6 per cent year over year as deposits rose 3 per cent.

Adjusted net income from the bank’s U.S. arm was up 8 per cent at $960-million. Expenses climbed 10 per cent from the year prior as TD spends to fix gaps in its risk governance and controls. The bank has been restructuring its balance sheet and operations to cut costs.

TD set aside $1-billion in provisions for credit losses. That was lower than analysts anticipated, and included $973-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, TD set aside $1.34-billion in provisions.

The union that represents track signal workers at Canadian Pacific Kansas City Ltd. CP-T -2.17%decrease has issued a 72-hour strike notice, the Calgary-based railway said on Wednesday night.

Contract negotiations with the International Brotherhood of Electrical Workers will continue into the weekend as the two sides try to reach a new collective agreement, CPKC said in a statement.

Without elaborating, the railway said it has a back-up plan in place should the 300 workers strike, and operations will continue.

IBEW members install and repair trackside signals and switches as well as warning systems at road crossings on CPKC’s Canadian rail network.  

“We remain committed to bargaining in good faith with IBEW in order to reach a negotiated outcome that is in the best interests of our employees and their families, our customers, and the company,” CPKC said.

The union said its members will strike at 8 a.m. MT on Sunday.

Unions officials did not immediately respond to requests for comment.

Canadian Imperial Bank of Commerce CM-T -1.91%decrease reported a 23-per-cent increase in fiscal second-quarter profit that beat analysts’ estimates, and announced a deal to sell its Caribbean division for US$1.6-billion.

Profits were up across each of the bank’s business units in the quarter that ended April 30. Capital markets earnings increased 40 per cent from a year earlier as revenue from trading and investment banking surged, and the bank recovered funds previously earmarked to cover losses on loans.

CIBC earned $2.47-billion, or $2.53 a share, compared with $2.01-billion, or $2.04 a share, in the same quarter last year.

After adjusting for amortization costs, CIBC said it earned $2.54 a share. The consensus estimate among analysts going into the quarter was $2.42 a share, according to Bloomberg.

The bank also announced a plan to buy back up to 30 million shares, or 3.3 per cent of its outstanding share count, over the next year. Its quarterly dividend was unchanged at $1.07 a share.

On Wednesday, Bank of Nova Scotia BNS-T -1.32%decrease, Bank of Montreal BMO-T -1.10%decrease and National Bank of Canada NA-T +0.62%increase all reported profits that surpassed analysts’ expectations. Royal Bank of Canada RY-T +0.14%increase also topped estimates on Thursday.

CIBC said it has reached a deal to sell its 91.67-per-cent stake in CIBC Caribbean to Bermuda-based The Bank of N.T. Butterfield & Son. CIBC will receive US$1-billion in cash and Butterfield shares currently worth US$645-million, and the transaction is expected to close in the first half of 2027.

Selling the division “will allow the bank to reallocate capital towards strategic growth priorities in North America,” the bank said in a statement on Thursday.

CIBC has done business in the Caribbean since the 1920s, and previously tried to sell a majority stake in the unit to a group led by Colombian banker and real estate developer Jaime Gilinski. Regulators blocked that transaction amid a health crisis over the spread of COVID-19.

Chief executive officer Harry Culham also announced the first changes to his senior executive team since he took the helm at the bank last November, creating roles with sole oversight for commercial banking as well as wealth management.

Susan Rimmer has been named group head of commercial banking, adding responsibility for CIBC’s U.S. commercial operations to her existing duties leading the Canadian division.

Eric Belanger will be group head of wealth management, taking on oversight of the business in Canada and the U.S. from Ms. Rimmer. He was most recently head of CIBC Global Asset Management, and has worked at the bank for more than 30 years.

Kevin Li will continue to serve as group head of the U.S. region and CEO of CIBC Bank USA.

Chief of staff Amy South was also named chief administrative officer, as current CAO Christina Kramer will leave the bank on Oct. 31, after a stint as a special adviser.

Chief financial officer Robert Sedran adds oversight of enterprise transformation to his role.

The executive moves are effective on Thursday.

In the second fiscal quarter, CIBC’s provisions for credit losses – the money the bank earmarks to cover potential losses on defaulted loans – was unchanged from a year earlier, at $605-million.

Provisions on loans that are past due increased by $85-million, to $548-million, which the bank attributed to “economic pressures” and some seasonal trends.

Profit from Canadian personal and business banking was up 15 per cent to $846-million, compared with a year earlier. Loan balances increased 2 per cent and the profit margin on lending increased by 32 basis points. (100 basis points equal one percentage point).

Capital markets profit was $792-million, with revenue up 21 per cent. A busy quarter for equities trading and advisory work in corporate and investment banking helped boost the division’s earnings. The bank also reclaimed $15-million of previous loan-loss provisions.

Canadian commercial banking and wealth management profit increased 12 per cent to $614-million, as loans and deposits each increased 7 per cent and profit margins improved.

And the bank’s U.S. division, which focuses on commercial banking and wealth management, had profit of $260-million, up 56 per cent year over year. Provisions for credit losses were lower than a year ago, while loan and deposit balances were up 6 per cent and 8 per cent respectively.

Toronto-Dominion Bank TD-T -0.31%decrease posted earnings that topped analysts’ expectations on higher profit from its Canadian banking and capital markets units as the lender set aside fewer provisions for sour loans.

The bank said it earned $2.38 a share on an adjusted basis for the second quarter ended April 30. That beat the $2.26 a share analysts estimated, according to Bloomberg data.

TD chief executive officer Raymond Chun said it was “another strong quarter for TD.”

“We also continue to make consistent progress on our AML remediation and enhancements, which remain our top priority,” he said.

The bank raised its quarterly dividend 4 cents to $1.12 a share. TD has also been buying back shares as it sits on a substantial amount of excess capital.

TD is betting on its Canadian businesses to prop up its growth ambitions as it cuts costs and remediates its anti-money-laundering failures in the United States.

Canadian personal and commercial banking profit was $1.93-billion, up 15 per cent from a year earlier on higher revenue and lower provisions. Loan balances were up 6 per cent year over year as deposits rose 3 per cent.

Economic uncertainty, inflation and higher interest rates have weighed on the housing market and business sentiment, tempering demand for lending, in particular in real estate secured lending (RESL).

“The consumer continues to be resilient; however, when you look at RESL, the rates are a little bit higher than a few months ago, and that is putting pressure on volume for RESL,” TD chief financial officer Kelvin Tran said in an interview.

“On the business side, anecdotally, when you talk to clients over time, they say, well I’ve been pausing for some time now and I’m ready to invest. So there’s confidence in the outlook of Canada.”

Adjusted net income from the bank’s U.S. arm was up 8 per cent at $960-million. Expenses climbed 10 per cent from the year prior as TD spends to fix gaps in its risk governance and controls. The bank has been restructuring its balance sheet and operations to cut costs.

TD has previously said it expects expense growth this year to land in the mid-single-digit range. Mr. Tran said despite the higher costs this quarter, the bank is still comfortable with its previous guidance.

“Our focus is reducing structural costs, and that’s the same approach for the entire bank, whether it’s in Canada or in the U.S.,” Mr. Tran said. “In the U.S., even though this quarter the expenses were on the high side, we do expect the full year will be at the mid-single-digit growth range.”

TD is the final major Canadian bank to report earnings for the fiscal second quarter. Bank of Montreal BMO-T -1.14%decrease, Bank of Nova Scotia BNS-T -1.50%decrease and National Bank of Canada NA-T +0.39%increase reported earnings on Wednesday. Royal Bank of CanadaRY-T +0.09%increase and Canadian Imperial Bank of CommerceCM-T -1.70%decrease also posted earnings on Thursday.

TD set aside $1-billion in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated, and included $973-million against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, TD set aside $1.34-billion in provisions.

Capital markets profit climbed 46 per cent to $612-million, driven by higher revenue and lower provisions.

The wealth management and insurance division generated $837-million of profit, up 18 per cent on higher assets, insurance premiums and deposit volume growth.

Royal Bank of Canada RY-T +0.02%increase posted higher second-quarter profit that beat analysts’ estimates, boosted by a surge in capital markets earnings and lower provisions for sour loans.

RBC’s profit climbed 25 per cent to $5.5-billion, or $3.85 per share, in the three months that ended April 30.

Adjusted to exclude certain items, the bank said it earned $3.90 per share. That topped the $3.77 per share analysts expected, according to Bloomberg data.

“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,” RBC chief executive officer Dave McKay said in a statement.

The bank raised its quarterly dividend by 12 cents to $1.76 per share. The lender also said it plans to repurchase 45 million of its shares, representing about 3 per cent of its common stock.

RBC has been focused on bolstering its profitability. During fourth-quarter earnings in December, the bank raised its return on equity (ROE) target to 17 per cent or more after surpassing the 16-per-cent goal the bank set at its investor day last year.

In the quarter, the bank posted higher ROE at 17.2 per cent.

RBC is the fifth major Canadian bank to report earnings for the fiscal second quarter. Bank of Montreal BMO-T -0.88%decrease, Bank of Nova Scotia BNS-T -1.45%decrease and National Bank of Canada NA-T +0.32%increase reported earnings on Wednesday. Toronto-Dominion Bank TD-T +0.02%increase and Canadian Imperial Bank of Commerce CM-T -1.70%decrease also posted earnings on Thursday.

RBC set aside $912-million in provisions for credit losses – the funds banks set aside to cover loans that may default. That was lower than analysts anticipated, and included $899-million against loans the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, RBC set aside $1.4-billion in provisions as it built up reserves ahead of a potential economic downturn.

Profit from personal banking was $1.87-billion, up 17 per cent from a year earlier, on higher net interest income and lower provisions. Loan balances were up 4 per cent year over year while deposits decreased 1 per cent.

The commercial banking unit posted profit of $854-million, up 43 per cent from a year earlier, largely driven by lower provisions.

Capital markets posted earnings of $1.48-billion, an increase of 23 per cent from a year earlier, driven by higher revenue in global markets and corporate and investment banking.

The wealth management division generated $1.19-billion of profit, up 28 per cent on higher fee-based client assets and net interest income.

Profit from insurance was up 3 per cent at $218-million. RBC is restructuring the unit’s leadership as insurance head Jennifer Publicover is leaving the bank effective June 1.

Prime Minister Mark Carney said Canada has entered into negotiations to buy Swedish-made Saab early-warning aircraft technology, picking a non-U.S. supplier as he makes good on a promise to reduce spending on American military gear.

Mr. Carney announced the selection at the annual CANSEC defence trade show in Ottawa Wednesday.

He said Canada will proceed with the Swedish GlobalEye system, made by Saab. Other contenders were the Aeris X by L3Harris and the E-7 Wedgetail by Boeing.

The GlobalEye early warning system will be installed on Global 6500 jets made by Bombardier in Canada.

Alimentation Couche-Tard (ATD-T, Monday’s close $79.05) was in a major uptrend for more than four years, trading above a rising trendline (solid line) and its rising 40-week moving average (40wMA). We recommended the stock on numerous occasions during this period.

Following the February, 2024, high of $87.27 (A), the stock began trading within a slightly declining parallel channel (dotted lines), while the 40wMA also trended lower. More recently, the 40wMA started to curl upward, and the stock advanced above the upper boundary of the channel (B). Together, these developments signaled the end of the downtrend and the start of a new uptrend toward higher targets. A decisive rise above $86-$87 would confirm the breakout.

There is good support near $76; however, only a sustained decline below the 40wMA (currently near $74) would be negative.

Point & Figure measurements provide targets of $89 and $99. Higher targets are visible.

Monica Rizk is the Senior Technical Analyst

National Bank of Canada reported a second-quarter profit of $1.23 billion, up from $896 million a year ago, and raised its dividend.

The Montreal-based bank says it will now pay a quarterly dividend of $1.32 per share, an increase of eight cents per share.

National Bank says its second-quarter profit amounted to $3.06 per diluted share for the quarter ended April 30 compared with $2.17 per diluted share a year ago.

Revenue for the quarter totalled $3.91 billion, up from $3.65 billion in the same quarter last year, while the bank’s provision for credit losses amounted to $233 million, down from $545 million a year ago.

On an adjusted basis, National Bank says it earned $3.23 per diluted share in its latest quarter, up from an adjusted profit of $2.85 per diluted share a year ago.

Analysts on average had expected an adjusted profit of $3.13 per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published May 27, 2026.

Companies in this story: (TSX:NA)

Bank of Nova Scotia BNS-T reported higher second-quarter profit that beat analysts’ estimates on a boost from its Canadian banking unit as the lender seeks to bolster its profitability. 

Scotiabank earned $2.6-billion, or $2.00 per share, in the three months that ended April 30. That compared with $2-billion, or $1.48 per share, in the same quarter last year.

Adjusted to exclude certain items, the bank said it earned $2.02 per share. That edged out the $1.93 per share analysts expected, according to data from Bloomberg.

“The Bank delivered another strong quarter as we continue to execute on our strategy, with strong revenue growth coupled with expanding margins and another quarter of positive operating leverage,” Scotiabank chief executive officer Scott Thomson said in a statement.

Mr. Thomson has said he expects double-digit earnings per share growth in its domestic banking business this year. The unit is key to Scotiabank’s plan to boost its profitability.

Last quarter, Scotiabank said it expects to hit its target of 14-per-cent return on equity in 2027, a year earlier than expected.

In the second quarter, Scotiabank posted an adjusted return on equity of 13.2 per cent.

While the bank’s turnaround strategy is focused on building its Canadian business, it also hinges on improving its international unit and growing its capital markets division in the United States.

The bank raised its quarterly dividend by 4 cents to $1.14 per share.

Scotiabank is the first major Canadian bank to report earnings for the fiscal second quarter. Bank of Montreal and National Bank of Canada also report earnings on Wednesday. Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce will post earnings on Thursday.

losses – the funds banks set aside to cover loans that may default. That was higher than analysts anticipated, and included $1.1-billion against loans that the bank believes may not be repaid, based on models that use economic forecasting to predict future losses.

In the same quarter last year, Scotiabank set aside $1.4-billion in provisions.

Total revenue rose 8 per cent in the quarter to $9.8-billion. But expenses increased 2 per cent to $5.2-billion, which the bank said was driven by higher staffing, technology, advertising and business development costs.

Profit from Canadian banking was $935-million, up 53 per cent from a year earlier on higher revenues and lower provision for credit losses on performing loans. Loan balances rose slightly by 3 per cent year over year.

Profit from the bank’s international division rose 1 per cent to $701-million, driven by lower non-interest expenses and income taxes, partially offset by lower net interest income, lower non-interest income and higher provision for credit losses.

The global wealth management division generated $474-million of profit, up 19 per cent, driven by higher mutual fund fees, brokerage revenues and net interest income from the Canadian wealth business.

Capital markets profit rose 11 per cent to $457-million, driven by higher non-interest income and net interest income, which was partially offset by higher non-interest expenses.