Three major Canadian banks expressed positive views on the economy, contrasting the concerns of many small businesses impacted by the ongoing trade war with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC released their financial results ahead of the Toronto Stock Exchange opening. These banking giants collectively hold assets totaling up to $6 trillion and have extensive consumer and business loan portfolios in both Canada and the U.S., giving them a unique perspective on the effects of tariffs.
RBC CEO Dave McKay emphasized the resilience of the Canadian economy, citing improvements in employment and GDP in the second quarter. TD Bank CEO Raymond Chun mentioned a potential “super cycle” of investment in Canada, driven by government spending on infrastructure and defense projects. CIBC CEO Harry Culham expressed confidence in the latter half of 2026 and highlighted the importance of monitoring the labor market for any weaknesses.
Analysts predict that the elimination of the Canada-U.S.-Mexico Agreement (CUSMA) could lead to the loss of over 100,000 Canadian jobs, while the latest round of U.S. tariffs is expected to reduce Canadian growth by around half a percentage point. Despite these challenges, the CEOs of major banks remain optimistic about the economy’s resilience and the opportunities for growth in key sectors.
The CEOs of National Bank, Bank of Montreal, and Scotiabank also echoed positive sentiments regarding the Canadian economy and its ability to withstand the impact of the trade war. Canadian bank stocks continue to perform well on the Toronto Stock Exchange, with the BMO Equal Weight Banks Index ETF experiencing significant growth over the past year.