The news: Canada’s big banks exceeded expectations for the 2025 fiscal year as capital markets and wealth management carried results.

But economic uncertainty loomed over results. Adverse trade policy and a cooling labor market were hot topics, and there are risks of consumer credit stress: The Bank of Canada estimates that about 60% of outstanding mortgages will renew in 2025 or 2026.

Digging into the results:

• BMO stressed improved profitability and returning capital to shareholders. It also highlighted digital product improvements and partnerships designed to strengthen customer relationships and control costs.
• CIBC positioned results as part of a broader rebound, underscoring cost discipline and continued technology investment. It noted an increase in loan impairments across its businesses.
• TD cited better profitability in its core business and pointed to better operating leverage. The bank also cited initiatives with digital products alongside its push to apply AI to internal workflows and customer support.
• RBC trumpeted strength across its businesses while it continues to integrate HSBC Canada. It framed AI as a practical productivity enabler, noting internal tools meant to speed up work.
• National Bank of Canada is expanding its national footprint. That includes the integration of Canadian Western Bank, which it acquired earlier this year, and the purchase of assets from Laurentian Bank’s consumer operations.
• Scotiabank highlighted its wealth management and capital markets performance. Management emphasized ongoing investment in technology, including AI, and efforts to run more efficiently as it undergoes a massive global restructuring.

Our take: Canadian banks are on shaky footing despite strong earnings results. Threats to Canada’s economic wellbeing abound, which will trickle down to banks’ businesses. In the meantime, restructuring will likely distract management teams, slowing response to changing business conditions.