Royal Bank Earnings & The Big Six: Q1 2026 Performance Review
Canada’s financial giants – the Big Six banks – recently unveiled their first-quarter earnings for 2026, covering the period ending January 31st. The results paint a picture of robust performance across the board, with each institution exceeding analyst expectations. This report provides a detailed breakdown of the key takeaways from each bank’s earnings call, examining profit growth, revenue trends, and provisions for credit losses.
Key Highlights & Overall Trends
Analysts predicted a positive quarter, anticipating continued resilience in the face of global economic uncertainties, including the ongoing impact of international trade dynamics. Notably, provisions for credit losses – funds set aside to cover potential loan defaults – saw a slight increase, reflecting a cautious approach to lending in a dynamic economic landscape. Here’s a closer look at each bank’s performance:
Bank of Nova Scotia (Scotiabank) – BNS-T
Scotiabank kicked off the earnings season with a strong showing, reporting profits of $2.29 billion, or $1.73 per share. This represents a significant increase compared to the $993 million, or $0.66 per share, reported in the same quarter last year (which included an impairment loss related to the sale of banking operations in Colombia, Costa Rica, and Panama). Adjusted earnings reached $2.05 per share, surpassing analyst estimates of $1.95. The bank allocated $1.18 billion to provisions for credit losses. CEO Scott Thomson noted stabilization in Mexico, a key market for Scotiabank, with no operational disruptions despite recent events. Learn more about Scotiabank
Bank of Montreal (BMO) – BMO-T
Bank of Montreal reported a profit of $2.49 billion, or $3.39 per share, exceeding analyst expectations. Adjusted earnings reached $3.48 per share, compared to the anticipated $3.21. BMO is actively reshaping its U.S. operations and aims for a 15% return on equity, currently at 12.4%. Provisions for credit losses totaled $746 million, a decrease from the $1.01 billion reserved in the same quarter last year. Revenue increased by 6% to $9.82 billion. Explore Bank of Montreal
National Bank of Canada – NA-T
National Bank of Canada experienced a substantial profit jump, reporting $1.25 billion, or $3.08 per share, up from $997 million the previous year. The acquisition of Canadian Western Bank contributed to this growth. Adjusted earnings reached $3.25 per share, exceeding estimates of $2.99. The bank increased its share repurchase plan to 14.5 million shares. Provisions for credit losses were $244 million. Revenue rose 22% to $3.89 billion. Discover National Bank of Canada
Royal Bank of Canada (RBC) – RY-T
Royal Bank of Canada delivered a 13% increase in profit, reaching $5.8 billion, or $4.03 per share. Adjusted earnings were $4.08 per share, surpassing the expected $3.84. Provisions for credit losses amounted to $1.09 billion. Revenue increased by 7% to $17.96 billion. Visit Royal Bank of Canada
Canadian Imperial Bank of Commerce (CIBC) – CM-T
CIBC reported a profit of $3.1 billion, or $3.21 per share, beating investor expectations. Adjusted earnings were $2.76 per share, exceeding the anticipated $2.40. Profit from Canadian personal and business banking jumped 25% year-over-year. Capital markets also performed strongly, with a 42% increase in profit. Learn about CIBC
Toronto-Dominion Bank (TD) – TD-T
Toronto-Dominion Bank saw a significant 45% increase in profit, reaching $4.04 billion, or $2.34 per share. Adjusted earnings were $2.44 per share, surpassing estimates of $2.26. The bank is actively cutting costs to address remediation efforts related to anti-money-laundering failings, with a final restructuring charge of $200 million. Provisions for credit losses were $1.04 billion. Revenue climbed 18% to $16.56 billion. Explore Toronto-Dominion Bank
Looking Ahead
The strong performance of Canada’s Big Six banks in Q1 2026 demonstrates their resilience and adaptability in a complex economic environment. While provisions for credit losses are increasing, the banks remain optimistic about future growth and profitability. Continued monitoring of economic indicators and proactive risk management will be crucial for sustaining this positive momentum.
