Canada’s Big 6 Bank Earnings (Aug 2025): What They Mean for Your TFSA
Everyone talks about Wall Street… but here in Canada, the spotlight is on Bay Street.
This week, all of Canada’s Big 6 banks are reporting earnings. These aren’t just any companies… most of them rank among the top 10 most valuable on the TSX. If you hold a Canadian index fund or ETF in your TFSA or RRSP, chances are your money is already tied to them.
Bank earnings don’t just show how the financial sector is doing… they reveal how Canadians are borrowing, spending, and investing in today’s economy.
Royal Bank of Canada ($RY)
Canada’s biggest bank, the most valuable company in the country by market cap, and a backbone of the economy.
RBC’s sheer size and diversification make it a stable choice.
It holds leading market positions across many financial services and has strong capital markets and wealth management divisions, helping it consistently pay dividends.
But last quarter profits fell as RBC set aside more cash for potential bad loans… investors will watch if credit risks are easing or still a concern.
📆 Reports earnings on August 27
💰 Dividend: 3.23%
TD Canada Trust ($TD)
A top Canadian bank with over $2 trillion in assets, and a big U.S. presence, giving it growth beyond Canada.
Long-term investors value its diversification and dividend history
TD has been cutting roughly 2% of its workforce and buying back shares to improve efficiency.
This comes after some U.S. regulatory hurdles, as TD focuses on cost control and returning capital to shareholders.
📆 Reports earnings on August 28
💰 Dividend: 4.08%
Scotiabank ($BNS)
Scotiabank is the most international of the big banks. In addition to its Canadian operations, it has significant business in Latin America and other overseas markets.
Scotiabank offers exposure to faster-growing emerging markets (like Mexico, Peru, Chile, etc.) which could boost long-term growth.
It’s also known for a hefty dividend yield.
How is Scotiabank’s international division performing? Economic ups and downs outside of Canada can strongly affect its earnings… as we’ve seen in the past.
Investors will be looking to see if overseas results improve and how the bank is managing any risks in those markets.
📆 Reports earnings on August 26
💰 Dividend: 5.52%
Bank of Montreal ($BMO)
Canada’s oldest bank, now earning nearly half its profit in the U.S. after buying Bank of the West.
Long-term investors like BMO’s balanced Canada-U.S. mix and steady track record.
It just raised its dividend to $6.52 per share, a sign of confidence in its earnings.
Can BMO’s expanded U.S. operations keep boosting results?
This earnings report will be watched for further progress in the U.S. division and any updates on cost synergies from the merger.
📆 Reports earnings on August 26
💰Dividend: 4.11%
CIBC ($CM)
CIBC has a strong focus on domestic banking (serving Canadian personal and business customers).
It’s slightly smaller than its peers, but still a significant lender in areas like mortgages, personal loans, and small business banking across Canada.
Surprised analysts last quarter by beating earnings while bigger peers struggled.
Its concentration in Canada means it benefits directly when the Canadian economy is strong(though it also means exposure to things like the housing market).
CIBC has a large mortgage and personal loan portfolio, so any signs of borrowers struggling or thriving will be key.
📆 Reports earnings on August 28
💰 Dividend: 3.83%
National Bank ($NA)
The smallest of the Big Six, but it plays a big role in Quebec’s economy (its home province).
Profits jumped 29% last quarter, thanks in part to a 56% increase in its trading and investment banking income during a volatile market.
Some long-term investors view National Bank as a “hidden gem.”
Because it’s smaller than its peers, it can sometimes grow faster in certain areas.
The question now: Was last quarter’s trading windfall a one-off?
National Bank benefited from unusually high trading volumes recently, but experts don’t expect that pace to continue indefinitely
📆 Reports earnings on August 27
💰 Dividend: 3.11%
📝 Closing Notes
The Big 6 banks don’t just drive the TSX, they reflect the health of Canada’s economy. From mortgages and business loans to dividends and international growth, their results give us a real snapshot of how Canadians are borrowing, spending, and investing.
Thanks for reading, and stay tuned for next week’s edition, where I’ll break down news updates on the Canadian economy.