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Canadian (TSX) Banks Industry Analysis

UpdatedMay 02, 2026
DataAggregated Company Financials
Companies9
  • 7D1.5%
  • 3M12.2%
  • 1Y56.4%
  • YTD10.1%

The Banks industry is up 1.5% in the last week, with Royal Bank of Canada up 1.8%. This means that the industry has gained 56% over the past year. As for the next few years, earnings are expected to grow by 3.0% per annum.

Industry Valuation and Performance

Has the Canadian Banks Industry valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sat, 02 May 2026CA$1.1tCA$239.6bCA$72.1b17x15.1x4.5x
Mon, 30 Mar 2026CA$957.4bCA$239.6bCA$72.1b15x13.3x4x
Wed, 25 Feb 2026CA$1.0tCA$231.8bCA$68.8b16.5x14.8x4.4x
Fri, 23 Jan 2026CA$990.8bCA$231.5bCA$67.7b16.4x14.6x4.3x
Sun, 21 Dec 2025CA$987.0bCA$231.5bCA$67.7b15.4x14.6x4.3x
Tue, 18 Nov 2025CA$907.7bCA$227.2bCA$66.1b14.7x13.7x4x
Thu, 16 Oct 2025CA$888.1bCA$227.2bCA$66.1b15.5x13.4x3.9x
Sat, 13 Sep 2025CA$865.9bCA$227.2bCA$66.1b15x13.1x3.8x
Mon, 11 Aug 2025CA$795.4bCA$219.5bCA$60.4b14.3x13.2x3.6x
Wed, 09 Jul 2025CA$785.4bCA$219.5bCA$60.4b14.2x13x3.6x
Fri, 06 Jun 2025CA$752.6bCA$219.5bCA$60.4b13.6x12.5x3.4x
Sun, 04 May 2025CA$711.9bCA$207.7bCA$51.1b13.2x13.9x3.4x
Tue, 01 Apr 2025CA$690.1bCA$207.7bCA$51.1b13x13.5x3.3x
Thu, 27 Feb 2025CA$725.4bCA$203.5bCA$49.2b14.2x14.7x3.6x
Sat, 25 Jan 2025CA$731.5bCA$203.6bCA$49.6b15.3x14.7x3.6x
Mon, 23 Dec 2024CA$717.2bCA$203.6bCA$49.6b13x14.4x3.5x
Wed, 20 Nov 2024CA$714.0bCA$206.4bCA$47.7b13.8x15x3.5x
Fri, 18 Oct 2024CA$703.5bCA$206.4bCA$47.7b13x14.8x3.4x
Sun, 15 Sep 2024CA$690.5bCA$206.4bCA$47.7b12.4x14.5x3.3x
Tue, 13 Aug 2024CA$623.2bCA$202.7bCA$49.6b11.8x12.6x3.1x
Thu, 11 Jul 2024CA$615.1bCA$202.7bCA$49.6b11.7x12.4x3x
Sat, 08 Jun 2024CA$616.1bCA$201.6bCA$49.2b10.8x12.5x3.1x
Mon, 06 May 2024CA$604.3bCA$199.0bCA$49.4b10.4x12.2x3x
Wed, 03 Apr 2024CA$627.1bCA$199.0bCA$49.4b10.8x12.7x3.2x
Fri, 01 Mar 2024CA$598.5bCA$197.8bCA$46.9b11x12.8x3x
Sun, 28 Jan 2024CA$603.3bCA$195.5bCA$44.8b10.8x13.5x3.1x
Tue, 26 Dec 2023CA$613.2bCA$195.5bCA$44.8b10.8x13.7x3.1x
Thu, 23 Nov 2023CA$565.1bCA$197.4bCA$51.6b9.6x10.9x2.9x
Sat, 21 Oct 2023CA$522.2bCA$197.4bCA$51.6b9x10.1x2.6x
Mon, 18 Sep 2023CA$581.8bCA$197.4bCA$51.6b10.2x11.3x2.9x
Wed, 16 Aug 2023CA$577.8bCA$192.8bCA$52.2b10x11.1x3x
Fri, 14 Jul 2023CA$587.8bCA$192.7bCA$52.1b10.4x11.3x3.1x
Sun, 11 Jun 2023CA$570.1bCA$192.7bCA$52.1b9.9x10.9x3x
Tue, 09 May 2023CA$587.6bCA$192.7bCA$57.6b9.1x10.2x3x
Price to Earnings Ratio

10.2x


Total Market Cap: CA$587.6bTotal Earnings: CA$57.6bTotal Revenue: CA$192.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 13.1x202420252026
Current Industry PE
  • Investors are optimistic on the Canadian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 15.1x which is higher than its 3-year average PE of 13.1x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 4.5x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have grown 7.8% per year over the last three years.
  • Revenues for these companies have grown 7.5% per year.
  • This means that more sales are being generated by these companies overall, and subsequently their profits are increasing too.

Industry Trends

Which industries have driven the changes within the Canadian Financials industry?

CA Market0.083%
Financials0.80%
Banks1.46%
Regional Banks1.61%
Diversified Banks1.46%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 11.0x.
    • Analysts are expecting annual earnings growth of 34.6%, which is higher than its past year's earnings decline of 25.6% per year.
  • Investors are most pessimistic about the Diversified Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 13.1x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 35% over the next 5 years.
  • This is better than its past earnings decline of 26% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 2.8% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuation
RY Royal Bank of CanadaCA$244.201.8%
+CA$6.1b		45.9%PB2.7x
TD Toronto-Dominion BankCA$145.841.6%
+CA$3.8b		65.1%PB2x
BNS Bank of Nova ScotiaCA$106.052.4%
+CA$3.1b		52.3%PB1.5x
CM Canadian Imperial Bank of CommerceCA$152.501.8%
+CA$2.4b		73.3%PB2.2x
NA National Bank of CanadaCA$205.210.8%
+CA$590.0m		68.2%PB2.5x

Latest News

BMO
CA$207.41
Bank of Montreal
7D
-0.3%
1Y
53.8%
NA
CA$205.21
National Bank of Canada
7D
0.8%
1Y
68.2%

NA: Future Returns Will Reflect Buybacks And Easing Mortgage Renewal Concerns

Analysts have nudged the fair value anchor higher for National Bank of Canada as Street price targets cluster in the CA$179 to CA$202 range, citing Q1 results modestly above consensus, refreshed FY26 and FY27 estimates for Canadian banks, and reduced concern around mortgage renewals. Analyst Commentary Street research on National Bank of Canada has tilted more constructive, with a series of higher price targets clustering in the CA$179 to CA$202 band.
EQB
CA$124.17
EQB
7D
2.2%
1Y
28.0%

EQB: Future Returns Will Hinge On ROE Reset And Acquisition Execution

EQB's analyst price targets have shifted into a tighter CA$122 to CA$132 range, as analysts weigh a mix of recent target raises and trims, alongside expectations for return on equity recovery and related P/E multiple changes. Analyst Commentary Recent research on EQB reflects a split view, with some bullish analysts lifting price targets and others turning more cautious.
BNS
CA$106.05
Bank of Nova Scotia
7D
2.4%
1Y
52.3%

BNS: Future P/E Discount Will Reflect Modest ROE And Peer Execution Concerns

The Analyst Price Target for Bank of Nova Scotia has been adjusted to CA$106.57. Analysts point to a consistent fair value estimate alongside updated assumptions for discount rate, revenue growth, profit margin and future P/E, reflecting recent research that highlights mixed views on return on equity and the bank's relative positioning versus peers.
RY
CA$244.20
Royal Bank of Canada
7D
1.8%
1Y
45.9%
VBNK
CA$24.55
VersaBank
7D
-1.8%
1Y
56.4%

VBNK: Loan Expansion And Stablecoin Custody Will Shape Balanced Return Outlook

Analysts have raised their CA$13 price target on VersaBank to CA$14 after Q1 revenue topped estimates, citing healthy loan growth and early traction from the bank's stablecoin custody initiative, even though net interest margins came in below expectations. Analyst Commentary Analysts are updating their views on VersaBank after the latest Q1 release, focusing on how the bank balances loan growth, margins and new fee-based opportunities like stablecoin custody.
TD
CA$145.84
Toronto-Dominion Bank
7D
1.6%
1Y
65.1%

TD: Future Will Reflect Easing Mortgage Risks And Mixed Earnings Execution

Toronto Dominion Bank's average analyst price target is updated to CA$140.43, reflecting a cluster of recent target revisions in roughly the CA$135 to CA$148 range as analysts factor in recent earnings, refreshed multi year estimates and bank sector views. Analyst Commentary Recent research updates on Toronto Dominion Bank cluster in a CA$135 to CA$148 target range, with a mix of Neutral, Market Perform, Sector Perform, Underweight and Outperform views.
CM
CA$152.50
Canadian Imperial Bank of Commerce
7D
1.8%
1Y
73.3%

CM: Future Earnings Will Reflect Capital Markets Strength And Credit Discipline

Analysts have lifted Canadian Imperial Bank of Commerce price targets into a CA$135 to CA$158 range, citing Q1 results that exceeded consensus, stronger than anticipated performance in key banking segments, and refreshed longer term estimates across the Canadian bank group. Analyst Commentary Recent research updates point to a cluster of higher price targets on Canadian Imperial Bank of Commerce, with most sitting in the mid CA$130s to high CA$150s range.
LB
CA$40.35
Laurentian Bank of Canada
7D
0.2%
1Y
48.1%

LB: Stable Outlook Where Execution On Earnings Quality Will Drive Future Repricing

Narrative Update on Laurentian Bank of Canada Analysts have adjusted their CA$ price targets for Laurentian Bank of Canada, reflecting updated assumptions around discount rate, revenue growth, profit margin and future P/E, while keeping their overall fair value view broadly in line with prior estimates. Analyst Commentary Recent Street research updates have focused on adjusting price targets and sharpening expectations around valuation, growth and execution, using other financial services and infrastructure names as reference points.