The trend: Despite challenging economic conditions, Canada’s major banks showed solid Q2 earnings—with four of the Big Six beating analyst expectations. Here are the key themes:

Preparing for more delinquencies: Royal Bank of Canada (RBC) and Scotiabank missed profit estimates, citing higher-than-usual loan loss provisions, per Reuters. Indeed, most banks raised their loan loss provisions, per Wealth Professional. That’s because key indicators show signs of trouble ahead. For example, Ontario’s mortgage delinquency rate hit 0.24%, a 71.2% increase from last year, per The Financial Post. And about 1.4 million people missed at least one credit payment.  In addition, Vancouver is seeing one of its largest home listing surges in over a decade, with sales down approximately 24% since last year.

Plus, about 60% of Canadian mortgages will renew by 2026, many at much higher rates.