Frontline Perspectives: Large Canadian Banks Q2 2025 Earnings Round-Up

Heading into the second half of 2025, the trade war and tariff uncertainty continues to pose a challenging environment for the large Canadian banks. The Big Six's Q2 2025 adjusted earnings decreased 7.8% sequentially, driven by notably higher PCL on performing loans and lower noninterest revenue. Aggregate total PCL increased QOQ along with aggregate total PCL as a percentage of average net loans and acceptances. Moreover, aggregate PCL on performing loans more than tripled QOQ to $1.8 billion for the Big Six Canadian banks as global trade and tariff policy uncertainty remains elevated, weakening the outlook in North America. Aggregate loan growth stalled and was relatively flat QOQ. Although the operating and macroeconomic environment has become more challenging with weakening consumer spending and business investment, the Big Six remain well positioned with ample liquidity, stable funding, and solid capital levels. Join us for an in-depth discussion on the Large Canadian Banks Q2 2025 Earnings Round-Up with Carl De Souza, Senior Vice President, Sector Lead, North American Financial Institution Ratings and Shokhrukh Temurov, Vice President, North America Financial Institution Ratings. We will review capital levels, funding and liquidity, and credit trends amidst an uncertain environment.