Financial institutions report gains in latest earnings reports
Canada’s largest banks opened fiscal 2026 with strong earnings momentum, with wealth management divisions emerging as a key driver of profitability alongside resilient capital markets and core lending operations.
Royal Bank of Canada, TD Bank Group, Scotiabank, BMO Financial Group, and CIBC each pointed to client activity, higher market levels and diversified business models as central to first-quarter performance.
RBC wealth platform anchors record results
RBC delivered the strongest results among Canada’s banks by size, reporting net income of $5.8 billion for the quarter ended January 31, a 13% increase from a year earlier. Diluted earnings per share rose to $4.03, while adjusted net income reached $5.9 billion.
Wealth management remained a significant contributor, benefiting from stronger markets, higher fee-based revenue and continued client engagement across advisory and asset management businesses. Growth across personal and commercial banking and capital markets further supported results.
“RBC entered the 2026 fiscal year in a position of strength across our diversified business model and the core global markets where we operate,” said president and CEO Dave McKay. “We carried this momentum into our first quarter, reporting record results underpinned by strong earnings growth, our robust balance sheet and capital position, and a premium ROE that continues to deliver value for our shareholders.”
Return on equity reached 17.6%, supported by sustained earnings growth and a strong capital position, with the bank reporting a Common Equity Tier 1 ratio of 13.7%.
TD benefits from diversified earnings mix
TD Bank Group reported net income of $4.0 billion, a 45% increase year over year, while adjusted earnings rose to $4.2 billion.
The bank’s diversified model continued to support performance, with wealth management and insurance contributing to overall earnings alongside improving margins in its core banking operations. Wealth revenues reflected client engagement and market-related growth, complementing gains in net interest income.
Net interest income increased 10% year over year as net interest margin improved to 3.38%, aided by product pricing and balance sheet repositioning in the United States. Credit performance also improved, with provisions for credit losses declining to US$212 million.
TD said core loan growth remained positive when excluding portfolios identified for sale or run-off as part of restructuring initiatives.
“We achieved robust trading and fee income growth in our markets-driven businesses, volume growth in Canadian Personal and Commercial Banking, and margin expansion," said Raymond Chun, Group President and CEO, TD Bank Group. "Across TD, our colleagues are driving deeper relationships, helping us build a simpler and faster bank, with disciplined execution."
Scotiabank focuses on core growth strategy
Scotiabank reported adjusted net income of $2.7 billion and diluted earnings per share of $2.05 as the bank continued repositioning its international operations.
Results included a $434 million loss related to the completion of the sale of certain Central American banking operations, primarily reflecting foreign currency translation adjustments. Despite the charge, core business performance remained supported by client activity across Canadian banking and wealth operations.
The bank continues to emphasize strategic focus in key markets, with wealth management positioned as an important component of long-term growth and client relationship expansion.
“We saw earnings growth across all of our business lines this quarter, including in Canadian Banking, where we delivered another quarter of sequential margin expansion, accelerating fee income growth, and positive operating leverage,” said Scott Thomson, president and CEO. “We are confident that we can deliver on our medium-term objectives in 2027, including a return on equity above 14% – one year ahead of our Investor Day commitments."
BMO wealth and markets lift profitability
BMO Financial Group reported net income of $2.49 billion, up 16% year over year, while adjusted net income reached $2.55 billion and adjusted earnings per share rose 15% to $3.48.
Wealth and asset management played a significant role in the bank’s performance, supported by higher market levels and strong net sales activity. Capital markets also contributed through stronger advisory and equities trading revenue.
Return on equity improved to 12.1%, even as results included severance costs tied to efficiency initiatives as BMO continues integrating acquisitions and investing in productivity improvements across the enterprise.
Across the sector, wealth management divisions provided a stabilizing source of earnings growth during the quarter, benefiting from improving market conditions and sustained client demand for advice and investment solutions.
Combined with strong capital positions and diversified revenue streams, Canada’s largest banks entered fiscal 2026 positioned to navigate economic uncertainty while continuing to expand fee-based businesses.
“We earned record revenue in each of our operating segments this quarter, with strong fee growth in our market-driven businesses. Our focus on closely managing expenses and operational efficiency is creating capacity for strategic investments in technology and talent that deliver value for today and the future. Credit is well-managed and in-line with our expectations," said Darryl White, CEO of BMO Financial Group.
CIBC posts sharp earnings increase
CIBC followed with significant year-over-year profit growth, supported by higher revenues across all operating segments and strong client activity.
Net income totalled $3.1 billion, rising 43% compared with the same quarter last year. Revenue increased 15% to $8.4 billion, while diluted earnings per share climbed to $3.21. Adjusted net income was $2.7 billion.
CEO Harry Culham pointed to the strength of the bank’s strategy and execution:
“We delivered strong financial performance in the first quarter of 2026 including record revenue across all of our business units and higher return on equity, as we accelerated the execution of our client-focused strategy to build on our momentum and deliver more for our stakeholders.”
Growth was supported by improved results in Canadian personal and business banking as well as wealth management, where higher market levels and client engagement boosted fee income. CIBC ended the quarter with a CET1 ratio of 13.4%.
