Overview
- Major Canadian lenders reported second‑quarter results that topped analyst expectations, with most raising quarterly dividends and several announcing share buybacks or capital reallocations.
- Royal Bank of Canada reported a 25% rise in Q2 profit to $5.5 billion, raised its dividend to $1.76 a share, and said it will repurchase 45 million shares.
- Canadian Imperial Bank of Commerce posted a 23% profit increase and agreed to sell its 91.67% stake in CIBC Caribbean for US$1.6 billion, a deal the bank says will free capital for North American growth and is expected to close in the first half of 2027.
- Toronto‑Dominion Bank and others cited stronger Canadian banking and capital‑markets results plus materially lower provisions versus a year ago, while TD said anti‑money‑laundering remediation in the U.S. remains a top priority that continues to raise costs.
- The quarter’s gains reflect a pullback from the elevated reserves set last year, ongoing cost and ROE improvement programs, and could lead to more capital returns and targeted investments in U.S. businesses and capital markets over the next year.