Canadian Banks: That’s a wrap: Royal, TD Bank, CIBC 2Q takeaways

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Canadian Banks: That’s a wrap: Royal, TD Bank, CIBC 2Q takeaways

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Canadian Banks

That’s a wrap: Royal, TD Bank, CIBC 2Q

takeaways

Estimate Change

Wall (Bay) Street delivers while Main Street struggles 29 May 2026

2Q results from the Big Six banks (and updates from US banks this week) reaffirm our Equity

bullish view that capital markets momentum should drive strong EPS growth (five of six Canada

beat). While Wall Street is delivering, Main Street remains challenged, with a sluggish Banks-Multinational/Universal

Canadian economy weighing on loan growth and credit. Competitive dynamics Ebrahim H. Poonawala

(deposit/loan pricing) front and center, with investors focused on the growth vs. ROE Research Analyst

trade-off. Steady buybacks should support the group given excess capital, with CET1 at BofAS+1 646 743 0490

13.5% on average vs. an 11.5% minimum and 12.5%+ targets. See our report: Canadian ebrahim.poonawala@bofa.com

Banks: Halftime report: 2Q takeaways Gabriel Angelini

Research Analyst

BofAS

+1 646 855 3081Investment opportunities “haven’t seen in 40 years”

gabriel.angelini@bofa.com

A key assumption to adding exposure at current levels is a stronger economy over the

Michael Campos

next 6–12 months. On the earnings call, RBC CEO Dave McKay highlighted continued Research Analyst

resilience—steady consumer spending/savings and fiscal support—even as U.S. Section BofAS +1 646 855 3912

232 tariffs create localized credit weakness (notably Ontario). He struck a cautiously michael.c.campos@bofa.com

optimistic tone on a bilateral trade resolution, while pointing to a growing pipeline of

long-term investment opportunities (energy, infrastructure, minerals) “haven’t seen in 40

years,” supporting stronger medium-term growth. See our report: Expert Call