RBC, TD and CIBC report stronger-than-expected first-quarter earnings despite trade uncertainty

RBC, TD and CIBC each beat analysts' expectations in the fiscal first quarter and reported sizable profit increases. Banks cited higher trading and wealth-management activity, cost reductions and technology investments while noting ongoing trade uncertainty.

RBC, TD and CIBC reported first-quarter results that topped analysts' expectations and capped a week of strong earnings for Canada's largest banks. The sector's gains came as lenders restructured businesses to cut costs and invested in technology and artificial intelligence. Mortgage and loan demand eased, but market volatility lifted trading and wealth-management activity. Executives acknowledged trade uncertainty while pointing to infrastructure and energy projects as potential sources of capital flows. Key facts: - RBC's profit climbed 13 percent to $5.8 billion for the quarter ended Jan. 31, or $4.03 a share; adjusted earnings per share were reported at $4.08, above the $3.84 analysts expected. - TD's profit rose 45 percent to $4.04 billion, or $2.34 a share; adjusted EPS was $2.44 versus analysts' $2.26 estimate. The bank recorded a final $200-million pretax restructuring charge in the quarter and has announced workforce reductions and business wind-downs as part of cost cuts. - CIBC's profit surged 43 percent to $3.1 billion, or $3.21 a share; adjusted EPS was $2.76, above analysts' $2.40 estimate. - Earlier in the week, National Bank of Canada, Bank of Montreal and Bank of Nova Scotia also reported higher profits that beat estimates, completing a strong start to the sector's reporting season. - Bank leaders said restructuring, technology investments and increased capital-markets and wealth-management activity helped lift results, even as trade and tariff uncertainty remain part of the operating backdrop. Summary: The quarter delivered a strong start to the year for Canada's largest banks, driven by capital-markets gains, wealth management and ongoing cost-efficiency measures. Executives pointed to potential growth related to infrastructure and energy projects alongside persistent trade uncertainty. Undetermined at this time.