G-255 Canadian Banks Earnings Summary with Trading Indicators for December 25, 2025
Asset and deposit growth remains solid across all three reporting banks.
Net interest income continues to hold up well despite the lower rate environment.
Loan growth is modest, exactly as expected in a maturing cycle.
Non-interest income growth is still strong.
Notably, three of the Big-6 are actively adding leverage while still sitting on CET1 ratios comfortably above 13%.
Translation: Excess capital + rising payouts = more dividend increases and accelerated share buybacks ahead.
Valuation snapshot
Canadian bank equities are trading at the top of their historical valuation range â very few attractive equity long/short signals.
Canadian bank USD bonds (and CAD bonds) remain squarely in the middle of their multi-year trading ranges â similarly quiet on the credit side.
Bottom line: No compelling new G-255 equity or credit indicators triggered by the three banks that have reported 4Q results so far. The sector is expensive on equity, fairly priced on credit, and busy returning capital.
Bank of Nova Scotia
Royal Bank of Canada
National Bank of Canada
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