Three major Canadian banks expressed optimistic views on the economy, in contrast to the concerns raised by many small businesses amid the ongoing trade tensions with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC announced their financial results before the Toronto Stock Exchange opened on Thursday. With combined assets totaling up to $6 trillion, these banking giants have extensive portfolios of loans and a wide network in Canada and the U.S., giving them a unique perspective on the impact of tariffs.
RBC CEO Dave McKay highlighted the resilience of the Canadian economy, citing improvements in employment and GDP in the second quarter. He noted that despite ongoing trade uncertainties between Canada and the U.S., the average effective tariff rate remains low, with the majority of exports remaining duty-free.
TD Bank CEO Raymond Chun mentioned an emerging “super cycle” of investment in Canada, driven by government spending on infrastructure and national defense projects. He emphasized that trade tensions have not deterred investment opportunities, with potential for significant growth in the coming years.
CIBC CEO Harry Culham expressed confidence in the latter half of 2026, acknowledging the evolving trade environment and the need for continued monitoring of the labor market for any signs of weakness. A study by Oxford Economics warned of potential job losses if the Canada-U.S.-Mexico Agreement was eliminated, while BMO Capital Markets predicted a slight reduction in Canadian growth due to the latest round of U.S. tariffs.
National Bank’s CEO Laurent Ferreira also commended the resilience of Canada’s economy and praised government initiatives to support affected workers and businesses. He highlighted key infrastructure projects and regulatory decisions that signal positive momentum for the country’s economic development.
The CEOs of Bank of Montreal and Scotiabank separately voiced confidence in managing the Canada-U.S. trade tensions. Despite the challenges, shares of Canadian banks on the Toronto Stock Exchange continue to perform well, with the BMO Equal Weight Banks Index ETF showing significant growth over the past year.
