Three major Canadian banks expressed positive outlooks for the economy despite concerns from many small businesses dealing with the impacts of a trade war with the United States. Royal Bank of Canada, Toronto-Dominion Bank, and CIBC released their financial results ahead of the Toronto Stock Exchange’s opening on Thursday. With combined assets reaching $6 trillion, these banking giants have a broad range of loan products and client networks in both Canada and the U.S., providing them with valuable insights into the effects of tariffs.
RBC’s CEO, Dave McKay, highlighted the resilience of the Canadian economy, noting improvements in employment and GDP in the second quarter that support a cautiously optimistic view of continued growth. TD Bank’s CEO, Raymond Chun, mentioned an emerging “super cycle” of investment in Canada driven by government spending on infrastructure and national defense projects worth over $1 trillion. CIBC’s CEO, Harry Culham, expressed confidence in the latter half of 2026 while closely monitoring the evolving trade environment and labor market conditions.
A study by Oxford Economics for the Canadian American Business Council warned that over 100,000 Canadian jobs could be at risk if the Canada-U.S.-Mexico Agreement (CUSMA) was eliminated. BMO Capital Markets projected a potential half a percentage point reduction in Canadian growth due to the latest round of U.S. tariffs, primarily impacting business confidence and investment.
The CEOs of National Bank, Bank of Montreal, and Scotiabank also shared positive sentiments about Canada’s economic resilience and government support measures in response to the trade war. Despite ongoing trade tensions, Canadian bank stocks remain near record highs on the Toronto Stock Exchange, reflecting investor confidence in the sector’s performance.