Three major Canadian banks expressed positive views on the economy, in contrast to the concerns raised 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 before the Toronto Stock Exchange opened, showcasing their substantial combined assets of up to $6 trillion. These banking powerhouses, with extensive loan portfolios and client networks in both Canada and the U.S., are closely monitoring the impact of tariffs.
RBC CEO Dave McKay highlighted the resilience of the Canadian economy, noting improvements in employment and GDP in the second quarter, maintaining a cautiously optimistic outlook for continued growth. He pointed out that the average effective tariff rate remains low at around six percent, with the majority of exports remaining duty-free.
TD Bank CEO Raymond Chun discussed an emerging “super cycle” of investment in Canada, driven by government spending on infrastructure and national defense projects. He emphasized the opportunities for investment in Canada despite trade tensions, with over $1 trillion in approved projects through 2035.
CIBC CEO Harry Culham expressed measured confidence in the latter half of 2026 and emphasized the bank’s focus on monitoring the labor market for any signs of weakness. BMO Capital Markets predicted that the latest U.S. tariffs could reduce Canadian growth by half a percentage point, primarily affecting business confidence and investment.
National Bank’s CEO Laurent Ferreira praised the resilience of Canada’s economy and government initiatives to support businesses impacted by tariffs. He highlighted the government’s investment plans and aid measures, including projects like the icebreaker ship contract in Quebec.
Overall, the CEOs of the major Canadian banks view the ongoing trade war as manageable and commend the government’s efforts to support the economy. The shares of these banks on the Toronto Stock Exchange continue to perform well, with the BMO Equal Weight Banks Index ETF showing a significant increase of nearly 50 percent over the past year.