Canadian Banks: 2Q26 Preview: Halo Effect

研报英文原文证据摘录

Canadian Banks: 2Q26 Preview: Halo Effect

kicks off 5/27discount reflecting the strong EPS growth outlook. Share buybacks also playing a greater

2Q26 Earnings calendarrole, accounting for approximately a quarter of our forecasted EPS growth, offers

resiliency. Rising interest rates likely among the greatest risks. Exhibits 15–32.

Ticker Date Earnings Call

Ground reality less constructive BNS 5/27/2026 7:15am

BMO 5/27/2026 8:15am

Messaging from management teams suggests upward pressure on credit costs (PCLs), NA 5/27/2026 11:00am

muted loan growth in domestic P&C, and competitive deposit pricing. Offsetting this, CM 5/28/2026 7:30am

net interest margins likely have another year of expansion, while capital markets RY 5/28/2026 8:30am

momentum remains strong, which in turn should be supportive of wealth/asset TD 5/28/2026 9:30am

management revenues. Revise estimates to reflect softer near-term loan growth and Source: Company websites

elevated PCLs. POs higher on roll forward to FY27e P/E and P/B. Exhibits 3–14. BofA GLOBAL RESEARCH

Top ideas into 2Q print: National, TD Exhibit 2: Our EPS is in-line to cons.

TD Bank-TD and National-NA: screen most attractively, supported by capital markets BofA vs cons. estimates., 2Q26e

tailwinds (TD secular, NA business-mix), above-average excess capital (TD 14%+ CET1;

NA additional boost from CWB capital synergies; Exhibit 8), and scope for better-than- BofA Consensus

expected efficiency (TD AI deployment, NA P&C strategic review). RBC-RY: Positive EPS 2Q26 2Q26 Dividend

revisions (ex. markets driven), no (even minor) idiosyncratic blemishes on credit (weighed Ticker Rating PO EPS EPS Yield

on the stock last quarter) needed to rejuvenate stock performance. CIBC-CM: Above BMO Neutral $224 3.44 3.42 3.2%

BNS Neutral $114 1.97 1.94 4.1%