Three major Canadian banks expressed positive views on the economy, in contrast to the concerns of many small businesses affected by the ongoing trade war with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC released their financial results on Thursday, showcasing their significant assets totaling up to $6 trillion. With extensive consumer and business loan portfolios in both Canada and the U.S., these banking giants are well-positioned to assess the impact of tariffs.
RBC CEO Dave McKay highlighted the resilience of the Canadian economy and its growth in employment and GDP during the second quarter, maintaining a cautiously optimistic outlook. TD Bank CEO Raymond Chun mentioned a potential “super cycle” of investments in Canada, driven by government initiatives in infrastructure and defense. CIBC CEO Harry Culham expressed confidence in the latter half of 2026, while closely monitoring the labor market for any signs of weakness.
A study by Oxford Economics for the Canadian American Business Council warned of potential job losses if the Canada-U.S.-Mexico Agreement was eliminated. BMO Capital Markets projected a slight decrease in Canadian growth due to the latest U.S. tariffs affecting business confidence and investment. National Bank’s CEO Laurent Ferreira praised Canada’s economic resilience, citing government investment plans and aid measures for those impacted by tariffs.
The CEOs of Bank of Montreal and Scotiabank deemed the trade war between Canada and the U.S. as manageable. Despite these uncertainties, Canadian bank stocks have remained strong on the Toronto Stock Exchange, with the BMO Equal Weight Banks Index ETF showing significant growth over the past year.