Canadian Banks in a Global Context

Research evidence excerpt

Canadian Banks in a Global Context

May 19, 2026

Financial Services Weekly

Canadian Banks in a Global Context Financial Services

No two ways about it, the Canadian bank stocks are having a good year. Tom MacKinnon, FSA, FCIA Analyst

tom.mackinnon@bmo.com (416) 359-4629

Calendar YTD, the Canadian bank index has generated a total return of 14.5%, more than double the 6.8% median of a select group

Sohrab Movahedi Analyst

of 47 global bank stocks (including the Canadian banks) we track. sohrab.movahedi@bmo.com (416) 359-7157

A few other observations worth highlighting: Étienne Ricard, CFA Analyst

etienne.ricard@bmo.com (416) 359-5296

 Seven of the eight Canadian banks have had total returns ahead of the global median of 6.8%. Alexander Ponte, CFA

 Four of the eight Canadian banks have generated total returns ahead of the Canadian bank index of 14.5%. alexander.ponte@bmo.com (416)-317-4763

 Best three total return Canadian bank stocks have been CM (+24.5%), BMO (+19.8%; unrated) and NA (+19.4%). Cristian Cugini, CPA

 CM has been the top performer in our global group of 47 bank stocks (andhasgeneratedanimpressive73.1%totalreturn cristian.cugini@bmo.com (416)-263-2717

overthepastyear,whichisthesecondhighestinourglobalgroup). Grace MacDonald, CFA

gracej.macdonald@bmo.com (416)-254-3577

Current Canadian bank valuations sit at a premium relative to historical averages, reflecting strong sector fundamentals and more Katy Chen, CPA

encouraging Canadian macroeconomic outlook. We maintain our constructive stance but are increasingly selective, favouring banks katy.chen@bmo.com (416)-564-0615

with the clearest pathways to sustained ROE and earnings durability relative to valuation.

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