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Fri, December 5, 2025

G-255 Earnings Summary for Canadian Banks (Final) with Trading Indicators for December 4, 2025

Scotia | BMO | TD | CIBC | NBC | RBC

Key Takeaway

- Canadian Imperial Bank of Commerce (A2/A-) and Bank of Montreal (A2/A-) credit trading indicator changes to Long from Short as the Bank de-levered its balance sheet in 4Q 2025.

  • Asset and deposit growth is solid for all six banks.

  • Net interest income growth QoQ is showing the impact of lower interest rates in Canada and the US.

  • Loan growth is modest, exactly as expected in a maturing cycle.

  • Non-interest income growth is accelerating.

  • Notably, 2 of the 6 Banks are not de-levering while CET remains well above 13%.

G – 255 Canadian Bank Balance Sheet F 2025

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 → 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 → similarly quiet on the credit side.

Bottom line: No compelling new G-255 equity post 4Q results. Canadian Bank credit however, is far more attractive (with wider spreads) post results. 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

Canadian Imperial Bank of Commerce

Toronto-Dominion Bank

Bank of Montreal

Disclaimer - This report is not intended as, and does not constitute an offer, or a solicitation to buy or sell any securities or financial instruments. All data, levels, opinions, and representations herein are provided for informational purposes only and should not be relied upon for making investment decisions. Past performance is not indicative of future results. The authors of this report assume no liability for losses or damages arising from the use of this information. Investors should consult with a qualified financial advisor before making any investment decisions. The information in this report is based on sources believed to be reliable, but no guarantee is made as to its accuracy, completeness, or timeliness.