Announcements are the latest in a flurry of earnings statements from Canada's Big Six banks
Royal Bank of Canada (RBC) and Canadian Imperial Bank of Commerce (CIBC) beat analyst expectations in their first-quarter earnings as they became the latest of Canada’s banking giants to post Q1 financials.
RBC reported a stronger-than-expected profit increase in its first-quarter earnings, benefiting from its acquisition of HSBC Bank Canada and a surge in capital markets activity.
Canada’s largest lender posted a 43% jump in net income to $5.1 billion, or $3.54 per share, for the three months ending January 31.
Adjusted earnings, which exclude transaction and integration costs related to the HSBC acquisition, came in at $3.62 per share, surpassing analyst expectations of $3.25 per share, according to Refinitiv data.
RBC finalized its acquisition of HSBC Canada in 2023, and its first-quarter results reflect a significant $214 million boost from the integration. The bank’s personal and commercial banking division saw net income climb 24% to $1.68 billion, largely driven by higher net interest income. Excluding HSBC, net income still rose 17%, as loan balances increased 4% and deposits grew 8% year over year.
Commercial banking profits surged 20% to $777 million, with growth attributed to higher net interest income as loans expanded by 10%.
RBC’s capital markets division posted a 24% rise in net income to $1.43 billion, driven by increased corporate and investment banking activity and strong global markets performance.
The wealth management segment also delivered strong results, reporting $980 million in profit, up 48% year over year, fueled by higher client assets and market volatility.
Despite strong revenue growth, RBC increased its provisions for credit losses (PCL) to $1.05 billion, up from $813 million in the same quarter last year. This includes $985 million set aside for potential loan defaults based on economic forecasting models.
Total revenue surged 24% to $16.74 billion, while expenses rose 11% to $9.26 billion, partially due to higher share-based compensation.
RBC is the fifth major Canadian bank to report first-quarter earnings, following Bank of Nova Scotia, Bank of Montreal, and National Bank of Canada earlier this week. Canadian Imperial Bank of Commerce and Toronto-Dominion Bank also released their results today.
Read next: How BMO and Scotiabank fared in Q1 2025
“In Q1, we delivered strong results and client-driven growth across our businesses while prudently managing risk and making investments in technology and talent to position the bank for the future,” said RBC CEO Dave McKay.
CIBC profits jump in Q1
Canadian Imperial Bank of Commerce (CIBC), meanwhile, saw first-quarter profits swell to $2.17 billion compared with $1.73 billion the same time last year.
The bank’s revenue jumped to $7.28 billion, up from $6.22 billion, with profits coming in at $2.19 per diluted share for the quarter – an increase from $1.77 in Q1 2024.
Provisions for credit losses dipped, sliding to $573 million. In the first quarter last year, it set aside $585 million. Adjusted earnings per diluted share were $2.20 – higher than the $1.81 recorded in the first quarter of last year and above average analyst estimates of $1.97.
The bank’s president and chief executive officer Victor Dodig said the results showed “strong” financial performance bolstered by a diversified business platform and strong credit quality, setting it in good stead with expected volatility ahead in Canada-US relations and trade.
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