Canada & Latin America Banks: Canadian Banks 2Q26 Earnings Wrap-up

Research evidence excerpt

Canada & Latin America Banks: Canadian Banks 2Q26 Earnings Wrap-up

Equity Research

5 June 2026

Canada & Latin America Banks

Canadian Banks 2Q26 Earnings

Wrap-up

Canadian banks wrapped up 2Q26 earnings last week with all Canada & Latin America Banks

six exceeding consensus, aided by better-than-expected NII, POSITIVE

fees and PCLs. In addition, Canadian banks remain on track Canada & Latin America Banks

Brian Morton, CFA

for 2026 outlooks with modest loan growth driving NII higher, +1 212 526 2163

though credit costs are towards the high end of expectations brian.morton@barclays.com

BCI, US

All six banks exceed consensus: All six Canadian banks under our coverage exceeded

consensus expectations in 2Q26, the third quarter in a row and the only time in a 2Q over the

past four years. Across the group, results in 2Q26 were aided by better-than-expected NII, fees

and PCLs, although partially offset by higher expenses. Still, Canadian bank stocks were down

slightly over the week of earnings, as positive results were not enough to maintain the price

momentum. Overall, Canadian banks reiterated their outlooks for 2026 with modest loan

growth driving NII higher while PCLs are running at the higher end of expectations. In addition,

after remaining on pause in the most recent meeting, we expect the Bank of Canada to remain

on hold again at its upcoming June 10th meeting. Nevertheless, valuation for the group has

remained elevated with the S&P/TSX Composite Index Banks trading at all-time highs and ~16x

forward estimates.

Estimate revisions higher. On net, estimate revisions for fiscal 2026 and 2027 were higher, with

all six banks higher for 2026 and all but one higher for 2027.

Medium-term objectives generally intact: Overall, Canadian banks maintained their medium-