Three major Canadian banks expressed positive views on the economy while smaller businesses voiced concerns over the ongoing trade war with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC released their financial results on the Toronto Stock Exchange. These banking giants collectively hold assets totaling around $6 trillion and have extensive consumer and business loan portfolios. They highlighted the Canadian economy’s resilience, citing improvements in employment and GDP in the second quarter.
RBC’s CEO, Dave McKay, maintained a cautiously optimistic outlook, noting the low average effective tariff rate and the majority of exports remaining duty-free. TD Bank’s CEO, Raymond Chun, mentioned an upcoming “super cycle” for investments in Canada, driven by government spending in infrastructure and defense projects. CIBC’s CEO, Harry Culham, expressed confidence in the latter half of 2026 while closely monitoring the labor market for any weaknesses.
An Oxford Economics study suggested that eliminating the Canada-U.S.-Mexico Agreement could lead to over 100,000 job losses in Canada. BMO Capital Markets predicted a slight reduction in Canadian growth due to the latest U.S. tariffs impacting business confidence and investment. National Bank’s CEO, Laurent Ferreira, praised the resilience of Canada’s economy and government initiatives supporting affected workers and businesses.
Bank of Montreal and Scotiabank CEOs deemed the trade war manageable, contributing to the positive outlook of Canadian banks. Canadian bank stocks have remained strong, with the BMO Equal Weight Banks Index ETF increasing by nearly 50% in the past year on the Toronto Stock Exchange.