Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He graduated with a degree in Business Administration, has over a decade of writing experience, and grew his personal portfolio 153% from 2020 to 2024.
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Canada’s Big Six banks report fiscal third-quarter 2026 results next week, and after a remarkable run of year-over-year profit growth in Q2, investors are watching to see whether the earnings momentum can continue.
When Canada’s Banks Report Q3 Earnings
Scotiabank kicks off the reporting week on Tuesday, August 25, 2026, followed by Royal Bank of Canada on Thursday, August 27, according to company announcements. TD, BMO, CIBC, and National Bank of Canada also report during the August 25–28 window, though exact dates have not been confirmed in our sources. Investors should check each bank’s investor relations page for confirmed times.
Fiscal Q3 for Canadian banks covers the three months ended July 31, 2026.
Why This Week Matters for Canadian Investors
Canada’s biggest banks have been on what analysts are calling a hot streak. Yahoo Finance reporting describes the Big Six as being in a “sweet spot,” while The Logic notes that analysts are openly questioning how long the run can last given mounting economic risks.
BofA Securities released a Q3 preview in August expecting an earnings beat from Canadian banks, according to MarketScreener. But with strong results arguably priced in after the Q2 surge, the reaction to earnings could cut both ways depending on whether the banks can sustain the momentum or show signs of slowing. The macro backdrop matters here too — our Canada July CPI reaction covers the inflation picture the banks are operating in.
The Bar the Banks Set in Q2 2026
Second-quarter results set a high bar. According to BNN Bloomberg’s bank tracker (data as of August 19, 2026):
- BMO posted $2.63 billion in Q2 profit, up from $1.96 billion a year earlier
- Scotiabank earned $2.6 billion, up from $2.0 billion year-over-year
- TD earned $4.25 billion in Q2 profit
- RBC’s Q2 profit jumped 25% year-over-year
- CIBC and National Bank also posted year-over-year profit growth
The question heading into Q3 is whether those gains mark a rebound off weaker 2025 comparables, or the beginning of a sustained upcycle.
Five Things to Watch in Q3 Bank Earnings
1. Provisions for Credit Losses
One of the clearest signals next week will be whether provisions for credit losses continue rising or start to normalize. Analysts have flagged that the mortgage renewal cliff peaked in 2025, with pressure expected to ease in the second half of 2026. If provisions normalize, that would signal a positive turn in the credit cycle.
2. Capital Markets Revenue
Strong trading and deal activity boosted Q2 results. The question is whether that strength carried through the summer. According to spring-season analyst commentary from The Globe and Mail, RBC and National Bank were seen as better positioned for capital-markets upside heading into the year. Q3 will show whether that thesis played out.
3. Loan Growth and Net Interest Margins
Loan growth was described as “anemic” by Scotiabank analysts heading into the Q2 reporting season, according to The Globe and Mail. We’ll be watching to see whether domestic lending showed any signs of thawing in Q3, and whether margins held steady as the competitive environment for mortgages remains intense.
4. TD’s U.S. Asset Cap Constraint
TD operates under an indefinite asset cap in the U.S., which spring-season analysts flagged as a constraint on the bank’s upside potential. Any update on the status of that cap, or commentary on how TD is navigating the restriction, will be a key focus for investors holding the stock.
5. Valuations and Market Reaction
Heading into the spring reporting season earlier this year, Scotiabank analysts called Big Six bank valuations “frothy” after the group gained 7.6% following Q1 results, according to The Globe and Mail. Valuations have remained above historical averages. With beats arguably priced in, the market’s reaction to any signs of slowing could be swift.
How Canadian Investors Can Prepare
Earnings season is not the time to make impulsive decisions. If you already own Canadian bank stocks, this week is about monitoring whether your thesis remains intact. If you’re looking to add exposure, waiting for the full picture across all six banks is the prudent move.
The themes to watch are straightforward: are credit conditions improving, is capital-markets strength sustainable, and is domestic lending growth returning? The banks that can answer yes to two or three of those questions will likely be the ones the market rewards.
For investors building a dividend-focused portfolio, Canadian banks remain a core holding for many portfolios given their track record of consistent payouts and long-term capital appreciation. The key is buying at the right valuation, not chasing momentum.
If you’re ready to position your portfolio ahead of earnings, opening a self-directed account gives you the flexibility to act quickly when opportunities emerge. Questrade offers the lowest commissions for Canadian investors, and ETFs are always free to buy—making it easy to build a diversified portfolio that includes bank stocks alongside other sectors. Open a Questrade account today and get $50 in free trades to get started.
For more on this week’s market outlook, read our TSX Week Ahead for August 17, 2026. And if you’re exploring the best platforms to buy Canadian stocks, check out our Investing Apps guide.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Earnings schedule and market data as of August 19, 2026.
Written By
Nick Raffoul
Nick Raffoul is the Founder and Lead Analyst at Best Canadian Stocks. He holds a degree in Business Administration and has over a decade of writing experience. Nick began investing just before the COVID-19 market crash in March 2020, growing his personal portfolio 153% by 2024. In 2022, he founded Best Canadian Stocks to make data-driven investing accessible to all Canadians. His goal is to help all of his readers achieve financial freedom, maximize their spending power, and reach their financial goals. Whether you're maximizing your TFSA, building an RRSP to save for retirement, or looking to buy your first stock, Nick has your back. His work covers Canadian equities, dividend investing, tax-advantaged accounts, and personal finance.
