{"id":874243,"date":"2026-08-28T06:54:13","date_gmt":"2026-08-28T06:54:13","guid":{"rendered":"https:\/\/www.newsbeep.com\/ca\/874243\/"},"modified":"2026-08-28T06:54:13","modified_gmt":"2026-08-28T06:54:13","slug":"rbc-td-and-cibc-see-canada-remaining-resilient-through-trade-uncertainty-quarterly-earnings-beat-analysts-estimates","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/ca\/874243\/","title":{"rendered":"RBC, TD and CIBC see Canada remaining resilient through trade uncertainty; quarterly earnings beat analysts estimates"},"content":{"rendered":"

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

Bank towers are pictured in the financial district in Toronto. Bank executives signalled confidence in the Canadian economy’s ability to withstand tariff pressures.Andrew Lahodynskyj\/The Canadian Press<\/p>\n

Three of Canada\u2019s biggest banks posted profits that topped analysts\u2019 expectations and signalled that the country\u2019s economy can withstand tariff upheaval with the United States, bucking concerns over mounting trade and geopolitical uncertainty. <\/p>\n

Royal Bank of Canada RY-T<\/a>, Toronto-Dominion Bank TD-T<\/a> and Canadian Imperial Bank of Commerce CM-T<\/a> reported boosts in profit, capping off a week when each of the country\u2019s six biggest banks beat estimates. <\/p>\n

RBC chief executive officer Dave McKay said the bank\u2019s clients are continuing to spend and invest, and loan delinquencies have remained manageable. <\/p>\n

RBC bets on growth in Europe as businesses diversify trade<\/a><\/p>\n

While the recently announced U.S. tariffs could dampen Canada\u2019s economic growth, the effective tariff rate on Canada remains low, more than 80 per cent of U.S.-bound exports remain duty-free and Ottawa announced significant support packages to bolster the economy, he added. <\/p>\n

\u201cThe Canadian economy and labour market have performed well, having already absorbed multiple shocks over the past 18 months,\u201d Mr. McKay said during a conference call with analysts. <\/p>\n

CIBC\u2019s chief risk officer Frank Guse said the bank\u2019s clients with the most exposure to tariffs represent less than 1 per cent of the bank\u2019s loan portfolio. While the lender\u2019s impaired losses are slightly above the range CIBC had forecasted at the beginning of the year, that outlook did not include a prolonged trade war or conflict in the Middle East. <\/p>\n

But CIBC\u2019s CEO Harry Culham and other top executives said the bank has set aside an appropriate buffer to manage longer lasting economic challenges. The direction of the unemployment rate will be the main driver of the bank\u2019s outlook. <\/p>\n

\u201cWe recognize that rising trade and geopolitical tensions are having real consequences on the economy. The developments over the past week are a reminder that the path forward will not be linear, and we plan for a range of outcomes,\u201d Mr. Culham said during a conference call. <\/p>\n

\u201cLooking ahead, we approach the balance of fiscal 2026 with measured confidence.\u201d <\/p>\n

TD\u2019s chief risk officer Ajai Bambawale said the bank has set aside about $500-million in provisions for policy and trade risks, but expects total provisions for credit losses at the end of the year to meet the lower end of its previously forecasted range of 40 to 50 basis points. <\/p>\n

TD beats analysts\u2019 estimates, unveils plan to open 100 new U.S. branches<\/a><\/p>\n

A recent TD report said the Canadian economy could launch an investment \u201csupercycle\u201d if it takes certain steps, including increasing the competitiveness of its tax and regulatory systems. The report estimates that more than $1-trillion could be spent on key projects over the next 10 years and beyond. <\/p>\n

TD chief executive officer Raymond Chun spoke of opportunities during a conference call. <\/p>\n

\u201cIn Canada, trade tensions have not dampened investment opportunities as governments seek to drive new activity,\u201d Mr. Chun said.<\/p>\n

RBC, CIBC and TD wrapped up earnings among Canada\u2019s six biggest banks, topping expectations across their largest businesses, including capital markets and wealth management. Earlier in the week, Bank of Montreal, Bank of Nova Scotia<\/a> and National Bank of Canada<\/a> released results that beat analysts\u2019 estimates. <\/p>\n

RBC\u2019s profit rose 11 per cent to $6-billion, or $4.23 per share, in the three months that ended July 31 compared to the same quarter last year. Adjusted to exclude certain items, the bank said it earned $4.28 per share, topping the $4.07 per share analysts expected, according to data by S&P Capital IQ. <\/p>\n

TD\u2019s net income rose 38 per cent to $4.62-billion, or $2.74 per share, from the same quarter last year. Adjusted to exclude certain items, the bank said it earned $2.77 per share, beating the $2.47 per share analysts anticipated. <\/p>\n

CIBC earned $2.41-billion in the third quarter, or $2.47 per share, up 15 per cent from the same period last year. Adjusted earnings were $2.65-billion, or $2.73 per share, surpassing the $2.50 per share analysts expected. <\/p>\n

RBC\u2019s commercial banking unit posted record profit even as trade and geopolitical uncertainty weighed on business activity, particularly in real estate, supply chain, and consumer sectors within Ontario and British Columbia, Mr. McKay said. But loans edged higher as growth continued in certain sectors, including agriculture, health care and the public sector, as well as real estate, which benefitted from Ontario\u2019s HST rebate program. <\/p>\n

Commercial banking earned $936-million, up 12 per cent from a year earlier, driven by higher net interest income and lower provisions. Loan balances grew 4 per cent and deposits rose 9 per cent year over year. <\/p>\n

Profit in TD\u2019s U.S. business climbed 41 per cent to $1.07-billion as loans grew in middle market commercial lending and credit cards. The bank said it plans to open 100 new branches in the U.S. by the end of 2028, pending regulatory approval. <\/p>\n

TD\u2019s chief financial officer Kelvin Tran said the new sites will be located in the bank\u2019s existing footprint along the country\u2019s east coast. <\/p>\n

\u201cOur focus is driving organic growth, and building new branches to acquire new customers is part of that strategy,\u201d Mr. Tran said in an interview. <\/p>\n

U.S. regulators and law enforcement levied a cap on assets of US$434-billion that limits TD\u2019s ability to expand its retail operations in the country. To continue growing the business and create space under the asset cap, the lender shrunk its U.S. balance sheet by exiting less profitable portfolios. <\/p>\n

\u201cIt speaks volumes about the effectiveness of our structural cost reduction program, so as those savings come through, and on top of that, moderation of some governance and control costs, that gives us room to reinvest in the business,\u201d Mr. Tran said. <\/p>\n

CIBC agrees to pay $10-million to settle class action over non-sufficient funds fees<\/a><\/p>\n

CIBC\u2019s Canadian and U.S. commercial banking and wealth management beat analysts\u2019 estimates as loan demand and deposit balances rose. <\/p>\n

A key part of CIBC\u2019s growth strategy includes expanding its mass affluent segment \u2013 clients or households with more than $100,000 in investable assets. <\/p>\n

Over the next five years, the bank plans to double the size of the mass affluent segment, which has $360-billion in assets under management, CIBC\u2019s chief financial officer Rob Sedran said. The segment has grown 10 per cent this year. <\/p>\n

CIBC has invested in technology platforms aimed at providing services for those clients. Its wealth advisers are also using artificial intelligence to complete administrative work and spend more time with clients, he said. <\/p>\n

\u201cThis is a very competitive segment,\u201d Mr. Sedran said in an interview. \u201cYou really have to deliver value for money to this segment to make it worthwhile to them.\u201d<\/p>\n

With a report from Andrew Willis <\/p>\n","protected":false},"excerpt":{"rendered":"Open this photo in gallery: Bank towers are pictured in the financial district in Toronto. Bank executives signalled…\n","protected":false},"author":2,"featured_media":874244,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[901,888,902,879,877,903,49,48,876,895,896,891,878,875,46,549,295,894,887,914,880,881,893,889,890,884,904,885,909,910,44,912,907,911,905,908,882,898,899,714,897,906,865,61,900,892,886,883,913],"class_list":["post-874243","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-alberta","tag-arts-news","tag-bc","tag-breaking-news","tag-breaking-news-video","tag-british-columbia","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-news","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\/874243","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=874243"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/874243\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/874244"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=874243"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=874243"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=874243"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}