{"id":697919,"date":"2026-05-27T21:21:20","date_gmt":"2026-05-27T21:21:20","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/697919\/"},"modified":"2026-05-27T21:21:20","modified_gmt":"2026-05-27T21:21:20","slug":"more-certainty-needed-on-trade-talks-and-major-projects-bank-ceos-say","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/697919\/","title":{"rendered":"More certainty needed on trade talks and major projects, bank CEOs say"},"content":{"rendered":"

Open this photo in gallery:<\/a><\/p>\n

Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank in Toronto\u2019s financial district in 2024.Fred Lum\/The Globe and Mail<\/p>\n

Three chief executives of Canada\u2019s biggest banks are cautioning that businesses and consumers need greater certainty on trade negotiations and major project investments as Ottawa seeks to bolster the economy amid geopolitical tensions. <\/p>\n

Bank of Nova Scotia BNS-T<\/a>, Bank of Montreal BMO-T<\/a> and National Bank of Canada NA-T<\/a> posted higher second-quarter profits on Wednesday that beat analysts\u2019 expectations, bucking concerns over trade and economic uncertainty. <\/p>\n

Scotiabank chief executive officer Scott Thomson said he has observed a \u201csignificant change in tone\u201d from international investors, who are becoming more interested in opportunities in the Canadian market. <\/p>\n

\u201cI\u2019ve lived this, you\u2019ve seen a lot of foreign money leave Canada, and now you have a lot of foreign money looking at Canada for foreign direct investment,\u201d Mr. Thomson said during a conference call with analysts. <\/p>\n

He said Canada\u2019s pension funds \u2013 which have typically focused on global investments \u2013 are considering investing in projects within the country. The Maple 8 pension funds have faced criticism for neglecting domestic opportunities. <\/p>\n

Mr. Thomson referred to a \u201cgrand bargain\u201d in Western Canada as part of Prime Minister Mark Carney\u2019s efforts to attract capital. Earlier this month, Alberta and Ottawa struck a deal<\/a> on carbon pricing and emissions reductions, a key step in advancing a plan for a new oil pipeline. <\/p>\n

The Scotiabank CEO pointed to Ottawa\u2019s plans to potentially privatize airports<\/a>. Institutional investors, including pension funds, would be the most likely buyers. <\/p>\n

Trade uncertainty over looming negotiations on the United States-Mexico-Canada Agreement has weighed on businesses, prompting them to pause their growth plans.<\/p>\n

Mr. Thomson said business leaders across North America are increasingly aware that the three markets depend on each other. <\/p>\n

\u201cCUSMA is not something that\u2019s going to be ripped up,\u201d he said, using the Canadian acronym for the trade agreement. <\/p>\n

\u201cIt may continue to evolve, and there may be tariffs on specific sectors, and there may be some industries that are impacted, but ultimately it\u2019s very clear that this regional trading bloc is increasingly important to the U.S., as opposed to unimportant.\u201d <\/p>\n

U.S. floats preferential tariffs for Canada, Mexico if they co-ordinate on external levies<\/a><\/p>\n

BMO CEO Darryl White said the Canadian economy must contend with modest GDP growth, persistent inflation and unemployment. Clarity on USMCA negotiations and infrastructure investments would boost growth in both Canada and the U.S., he said.<\/p>\n

Business clients have been advocating for greater regulatory competitiveness in Canada, Mr. White said. And recent measures by the federal government, including speeding up project reviews and improving trade relationships, are a \u201cgood start.\u201d <\/p>\n

\u201cBusinesses operate across multiple jurisdictions, and meaningful growth will depend on a co-ordinated approach and alignment across governments to drive a more competitive environment for business investments in Canada,\u201d Mr. White said during a conference call. <\/p>\n

National Bank CEO Laurent Ferreira said the war in Iran will continue to disrupt supply chains, driving inflation and higher rates. He also said continuing trade issues and unemployment are causing \u201ccommercial tensions\u201d in Canada. <\/p>\n

\u201cIt feels like we are in a bit of a lull in our country, in terms of business investment,\u201d Mr. Ferreira said. \u201cWe are definitely encouraged by the shift in our government towards a focus on the economy, so that bodes really well going forward.\u201d<\/p>\n

On Thursday, Royal Bank of Canada RY-T<\/a>, Toronto-Dominion Bank TD-T<\/a> and Canadian Imperial Bank of Commerce CM-T<\/a> will round out earnings results for the country\u2019s largest lenders. <\/p>\n

The three banks that reported Wednesday all beat analysts\u2019 expectations. <\/p>\n

Scotiabank\u2019s profit in the second quarter climbed 30 per cent to $2.6-billion, or $2.00 a share, in the three months that ended April 30. Adjusted to exclude certain items, the bank said it earned $2.02 a share, beating the $1.93 a share analysts expected, according to data from Bloomberg. <\/p>\n

BMO earned $3.53 a share, or $2.6-billion, up 34 per cent from the same quarter last year. Adjusted to exclude certain items, the bank said it earned $3.67 a share, topping the $3.41 a share analysts anticipated. <\/p>\n

National Bank\u2019s profit jumped 38 per cent to $1.23-billion, or $3.06 a share. On an adjusted basis, National Bank said it earned $3.23 a share, edging out analysts\u2019 estimates of $3.14 a share. <\/p>\n

Scotiabank\u2019s turnaround strategy leans on growing its Canadian banking business. The unit is key to its plan to boost its profitability. Mr. Thomson has said he expects double-digit earnings-per-share growth in its domestic banking business this year. <\/p>\n

Last quarter, Scotiabank said it expects to hit its target of 14-per-cent return on equity in 2027, a year earlier than previously projected. In the second quarter, Scotiabank posted an adjusted return on equity of 13.2 per cent. <\/p>\n

Profit from Canadian banking was $935-million, up 53 per cent from a year earlier on higher revenues and lower provision for credit losses on performing loans. Loan balances rose slightly by 3 per cent year-over-year and mortgages grew 4 per cent as high interest rates and economic uncertainty weighed on demand for borrowing.<\/p>\n

BMO\u2019s growth plan, unveiled in March<\/a>, hinges on reviving its U.S. business and boosting its return on equity \u2013 a closely watched measure of profitability. In 2024, BMO set a goal of improving its ROE to 15 per cent by the end of 2027. <\/p>\n

The U.S. division \u2013 which makes up 40 per cent of BMO\u2019s earnings \u2013 is the division weighing on the bank\u2019s profitability. BMO set a target to improve the unit\u2019s ROE to 12 per cent from 8 per cent by 2028. <\/p>\n

In the second quarter, BMO\u2019s ROE edged higher to 13 per cent, and to 8.6 per cent in its U.S. business.<\/p>\n

Profit from the bank\u2019s U.S. unit rose 32 per cent to $790-million, bolstered by higher revenue and lower provisions. <\/p>\n

\u201cThe U.S. segment, which remains a focal point for investors, was a positive in the quarter with earnings ahead of our forecasts, largely due to lower expenses, and importantly, sequential growth in commercial loans,\u201d Scotiabank analyst Mike Rizvanovic said in a note to clients. <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce and…\n","protected":false},"author":2,"featured_media":697920,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[901,888,902,879,877,903,45,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-697919","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","tag-business","tag-ca","tag-canada","tag-canada-news","tag-canada-sports","tag-canada-sports-news","tag-canada-trafficcanada-weather","tag-canadian-breaking-news","tag-canadian-news","tag-economy","tag-education","tag-environment","tag-federal-government","tag-foreign-news","tag-globe-and-mail","tag-globe-and-mail-breaking-news","tag-globe-and-mail-canada-news","tag-government","tag-life-news","tag-lifestyle","tag-local-news","tag-manitoba","tag-national-news","tag-new-brunswick","tag-newfoundland-and-labrador","tag-northwest-territories","tag-nova-scotia","tag-nunavut","tag-ontario","tag-pei","tag-photos","tag-political-news","tag-political-opinion","tag-politics","tag-politics-news","tag-quebec","tag-sports-news","tag-technology","tag-travel","tag-trudeau","tag-us-news","tag-world-news","tag-yukon"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/697919","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=697919"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/697919\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/697920"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=697919"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=697919"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=697919"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}