Two of the Big Six beat estimates, but tariff risks raise credit concerns
Canadian banks will release their earnings throughout the week. Trump’s tariff threats have already weighed on bank stocks and the Toronto Stock Exchange, as concerns grow about the potential for a recession.
Scotiabank analyst Meny Grauman predicted that tariffs would be a major topic during earnings discussions, stating, “The potential impact of tariffs on all of these key earnings drivers is likely to dominate the earnings calls this quarter.”
He added that analysts will be watching how banks adjust provisions to account for trade risks.
Stock performance has varied among major banks. RBC, Scotiabank, CIBC, and National Bank shares have declined between 2.3 percent and 6 percent this year, while the Toronto Stock Exchange has gained 3 percent.
Meanwhile, TD Bank and Bank of Montreal shares have risen 12 percent and 2.5 percent, respectively.