Three major Canadian banks provided optimistic economic outlooks on Thursday, diverging from the concerns expressed by many small businesses affected by the ongoing trade tensions with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC released their financial results on the Toronto Stock Exchange. These banking giants collectively hold assets worth up to $6 trillion and have extensive loan portfolios, giving them a unique perspective on the impact of tariffs.
RBC’s CEO, Dave McKay, highlighted the resilience of the Canadian economy, citing improvements in employment and GDP in Q2. TD Bank’s CEO, Raymond Chun, mentioned an upcoming “super cycle” of investment in Canada driven by government spending on infrastructure and national defense projects. CIBC’s CEO, Harry Culham, expressed confidence in the latter half of 2026, emphasizing the need to closely monitor the evolving trade environment.
A recent study by Oxford Economics projected potential job losses in Canada if the Canada-U.S.-Mexico Agreement (CUSMA) was terminated. BMO Capital Markets estimated that the latest U.S. tariffs could reduce Canadian growth by half a percentage point due to decreased business confidence and investment. National Bank’s CEO, Laurent Ferreira, commended the resilience of Canada’s economy and government initiatives to support affected workers and businesses.
Despite the trade uncertainties, the CEOs of Bank of Montreal and Scotiabank deemed the Canada-U.S. trade war manageable. Canadian bank stocks have remained strong on the Toronto Stock Exchange, with the BMO Equal Weight Banks Index ETF soaring nearly 50% in the past year.