The Globe and Mail reports in its Monday edition that Canada's biggest banks are set to post a round of resilient profits, bucking economic uncertainty and looming trade pressure. The Globe's Stefanie Marotta writes that analysts expect capital markets and wealth management activity to continue to bolster profits while loan growth slows and credit losses remain elevated but manageable. Bank stocks have surged 16 per cent this year on the optimism surrounding the sector's ability to withstand economic uncertainty, outperforming the S&P/TSX Composite Index's 8-per-cent climb. While banks are expected to post strong earnings results next week, investor reaction will depend on management's expectations for the latter half of the year, Jefferies analyst John Aiken said in a note to clients. Canada's six largest lenders report over the course of two days. "It's going to be a banger," CIBC analyst Paul Holden said in a note. On Wednesday, Scotiabank, BMO, and National Bank report earnings for the three months ended April 30. RBC, TD and CIBC post earnings Thursday. The lenders have benefited from "a positive halo effect" from a "resource-rich economy, pro-business Carney government," BofA analyst Ebrahim Poonawala said.
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