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Canadian Banks Post Mixed Earnings in Q1 2025, Highlighting Growth and Challenges

RBC, TD, and CIBC beat profit expectations, driven by wealth and capital markets, while addressing economic uncertainty and regulatory hurdles.

A sign for the Royal Bank of Canada in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
A sign for the Royal Bank of Canada in Toronto, Ontario, Canada December 13, 2021. REUTERS/Carlos Osorio/File Photo
Bank of Montreal, Bank of Nova Scotia and Royal Bank of Canada signage is pictured in the financial district in Toronto, Friday, Sept. 8, 2023. THE CANADIAN PRESS/Andrew Lahodynskyj
TD Canada Trust and RBC Royal Bank logos are seen on the outside of office towers in downtown Vancouver, on Thursday, January 19, 2023.

Overview

  • Royal Bank of Canada (RBC) reported a 43% increase in net income to $5.1 billion, bolstered by its acquisition of HSBC Canada and strong capital markets performance.
  • Toronto-Dominion Bank (TD) posted a slight 1% decline in net income but exceeded analysts' expectations with $2.02 adjusted earnings per share, supported by wealth management growth and lower-than-expected loan-loss provisions.
  • Canadian Imperial Bank of Commerce (CIBC) saw a 26% rise in quarterly profit, reporting $2.20 adjusted earnings per share, driven by lower provisions for credit losses and robust commercial banking performance.
  • TD continues to address its U.S. anti-money-laundering compliance issues, including a $3 billion fine and divestitures, while restructuring its balance sheet for future growth.
  • Geopolitical uncertainties, including potential U.S. tariffs, have led banks to increase provisions for credit losses, with RBC and TD setting aside $1.05 billion and $1.21 billion respectively.