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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Big Six bank earnings begin this week, with Scotiabank reporting Wednesday, May 27 at 7:15 a.m. ET and Royal Bank of Canada following Thursday, May 28 before market open. For Canadian dividend investors, these reports are a chance to review portfolio exposure — not to trade the news.
What to Watch in Scotiabank and RBC Reports
Dividend investors don’t need to predict quarterly earnings. What matters is understanding the underlying health of the businesses that fund your passive income. Two key metrics deserve attention this week: provision for credit losses and capital markets fee revenues.
Provision for credit losses (PCLs) tell you how much the banks are setting aside for loans that may not be repaid. Higher PCLs signal rising credit risk — a headwind for profitability. RBC Capital’s Q2 preview models higher PCLs across the Big Six except TD (data as of May 22, 2026). If Scotiabank or RBC report PCLs significantly above analyst expectations, it’s worth understanding why.
Capital markets fee revenues reflect investment banking, wealth management, and advisory business. RBC Capital expects stronger capital markets performance across the group in Q2, driven by higher fee revenues. This is a tailwind. For dividend investors, strong capital markets results provide a cushion against any weakness in traditional lending.
Dividend Coverage Context
Both Scotiabank and RBC have long track records of maintaining and growing dividends through economic cycles. What you’re listening for in the conference calls is management’s language around dividend sustainability — not just this quarter, but over the next 12 months.
The Bank of Canada is holding its overnight rate at 2.25% (data as of May 22, 2026), with the next decision scheduled for June 10. Market pricing suggests a near-certain hold. This stable rate environment supports net interest margins, which is positive for bank profitability and, by extension, dividend coverage.
The Rest of the Big Six Follow
Scotiabank and RBC kick off the earnings cycle this week. The rest of the Big Six follow in the days after. This is a concentrated window where Canadian dividend investors get a clear snapshot of the sector’s health heading into the second half of 2026.
All six banks beat consensus expectations in Q1 2026, with combined earnings around $19 billion. RBC Capital’s Q2 preview models core earnings per share roughly 6% lower quarter-over-quarter but 21% higher year-over-year (data as of May 22, 2026). The sequential drop reflects seasonal patterns; the year-over-year gain reflects the broader strength in Canadian banking.
How Dividend Investors Should Respond
Review your portfolio exposure to Canadian bank stocks before the reports. If you’re overweight one bank relative to the others, these earnings calls are a good time to assess whether that concentration still makes sense. Dividend investors don’t trade earnings — they use earnings as a temperature check.
If you hold bank stocks across registered accounts like TFSAs or RRSPs, the dividends flow to you tax-free or tax-deferred. That’s the real advantage of holding Canadian dividend stocks in the right account structure.
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The Takeaway
Scotiabank reports Wednesday morning. RBC reports Thursday morning. The rest of the Big Six follow shortly after. Dividend investors should listen for PCL trends, capital markets strength, and management commentary on dividend sustainability. The reports don’t tell you what to do this week — they tell you whether your portfolio positioning still makes sense for the months ahead.
Data as of May 22, 2026.
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.
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.
