Canada’s Big Banks Report Mixed Fourth-Quarter Earnings

Royal Bank of Canada and National Bank of Canada exceed expectations, while Scotiabank falls short as provisions for credit losses and shifting mortgage dynamics shape results.

Royal Bank of Canada posted a $4.22 billion profit for Q4 2024, surpassing analyst expectations, driven by its integration of HSBC Bank Canada and increased revenue in personal and commercial banking.
National Bank of Canada reported a $955 million profit, narrowly beating estimates, with significant revenue growth offsetting higher provisions for potential loan losses.
Scotiabank's Q4 profit rose to $1.69 billion but missed analyst forecasts due to impairment charges and lower-than-expected provisions for credit losses.
Analysts predict that falling interest rates in 2025 could trigger a competitive mortgage market, as over half of Canadian mortgages are set to renew in the next two years.
Toronto-Dominion Bank, Bank of Montreal, and Canadian Imperial Bank of Commerce are set to release their Q4 earnings later this week, concluding the reporting period for Canada’s Big Six banks.