CIBC and Canada's Big Banks Beat Expectations in Q1 2025 Earnings
So, let’s talk about Canada’s big banks and their first-quarter earnings for 2025. The numbers are in, and despite a challenging economic environment, every major bank has posted profits that exceeded analyst expectations. We’re talking about RBC, TD Bank, CIBC, BMO, Scotiabank, and National Bank—each one delivering strong results despite concerns over loan defaults, tariffs, and a slowing economy.
Starting with CIBC , the bank reported a solid 26% increase in profit , bringing in $2.17 billion for the quarter. That translates to $2.19 per share , compared to $1.77 per share last year . Adjusted earnings were slightly higher at $2.20 per share , easily surpassing the $1.96 per share analysts had predicted . What’s interesting here is that CIBC managed to keep provisions for credit losses in check, setting aside $573 million , which is actually 2% lower than the same quarter last year. The bank did warn, however, about economic uncertainties, particularly around potential U.S. tariffs, which could impact cross-border business.
Moving on to BMO , it had an outstanding quarter, with profits surging to $2.1 billion , or $2.83 per share , up from $1.73 per share last year . Adjusted earnings hit $3.04 per share , crushing the expected $2.41 per share . The big driver? Capital markets activity . BMO saw a 45% jump in earnings from its capital markets division, reflecting a strong resurgence in deal-making.
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RBC —Canada’s biggest bank—absolutely crushed expectations. With profits jumping 43% to $5.1 billion , driven largely by its recent HSBC Bank Canada acquisition , RBC’s adjusted earnings came in at $3.62 per share , well above the expected $3.25 per share . Revenue soared 24% to $16.74 billion , but like its peers, RBC had to set aside over $1 billion for potential loan losses.
TD Bank had a slightly different story. It posted $2.79 billion in net income , or $1.55 per share , which was actually 1% lower than last year. However, once adjusted, its earnings of $2.02 per share still beat expectations of $1.96 per share . The bank also raised its dividend to $1.05 per share , showing confidence in its financial position despite ongoing regulatory challenges in the U.S.
Then there’s Scotiabank , which saw its reported earnings drop significantly to $993 million due to a major $1.4 billion impairment cost from selling off its Latin American businesses. However, its adjusted earnings of $1.76 per share still came in above analyst forecasts . The bank is clearly focusing more on its North American operations, which could pay off in the long run.
Finally, National Bank of Canada posted strong earnings growth, up 8% to $997 million , or $2.78 per share . Adjusted earnings of $2.93 per share easily topped expectations of $2.66 per share , thanks to increased market volatility boosting its wealth management and capital markets divisions .
Overall, the big takeaway from this earnings season? Canada’s banks are proving resilient despite economic uncertainty. They’re setting aside more money for potential loan defaults, but they’re also seeing strong revenue growth in key areas like wealth management, capital markets, and strategic acquisitions. The financial sector remains solid, but it’s clear that banks are preparing for a more unpredictable year ahead.
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