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Canadian (TSX) Banks Industry Analysis

UpdatedMar 16, 2026
DataAggregated Company Financials
Companies9
  • 7D-1.5%
  • 3M-0.4%
  • 1Y42.7%
  • YTD-2.1%

Over the last 7 days, the Banks industry has dropped 1.5%, driven by pullbacks in Bank of Montreal and National Bank of Canada of 0.8% and 1.5%, respectively. In the past year, the industry has gained 43%. 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
Tue, 17 Mar 2026CA$967.1bCA$239.6bCA$72.1b15.2x13.4x4x
Thu, 12 Feb 2026CA$1.0tCA$231.5bCA$67.7b16.8x15.1x4.4x
Sat, 10 Jan 2026CA$997.0bCA$231.5bCA$67.7b15.9x14.7x4.3x
Mon, 08 Dec 2025CA$960.2bCA$231.5bCA$67.7b15.3x14.2x4.1x
Wed, 05 Nov 2025CA$903.3bCA$227.2bCA$66.1b14.9x13.7x4x
Fri, 03 Oct 2025CA$891.1bCA$227.2bCA$66.1b15.4x13.5x3.9x
Sun, 31 Aug 2025CA$842.5bCA$227.2bCA$66.1b14.3x12.8x3.7x
Tue, 29 Jul 2025CA$799.4bCA$219.5bCA$60.4b14.2x13.2x3.6x
Thu, 26 Jun 2025CA$766.4bCA$219.5bCA$60.4b13.5x12.7x3.5x
Sat, 24 May 2025CA$744.2bCA$216.5bCA$59.6b13.5x12.5x3.4x
Mon, 21 Apr 2025CA$677.5bCA$207.7bCA$51.1b12.6x13.3x3.3x
Wed, 19 Mar 2025CA$694.2bCA$207.7bCA$51.1b13.1x13.6x3.3x
Fri, 14 Feb 2025CA$720.2bCA$202.5bCA$49.4b14.3x14.6x3.6x
Sun, 12 Jan 2025CA$713.8bCA$203.6bCA$49.6b14.8x14.4x3.5x
Tue, 10 Dec 2024CA$731.2bCA$195.5bCA$50.2b13.4x14.6x3.7x
Thu, 07 Nov 2024CA$698.8bCA$206.4bCA$47.7b13x14.7x3.4x
Sat, 05 Oct 2024CA$692.6bCA$206.4bCA$47.7b12.6x14.5x3.4x
Mon, 02 Sep 2024CA$663.8bCA$206.4bCA$47.7b12x13.9x3.2x
Wed, 31 Jul 2024CA$637.4bCA$202.7bCA$49.6b11.8x12.8x3.1x
Fri, 28 Jun 2024CA$604.8bCA$202.7bCA$49.6b11.2x12.2x3x
Sun, 26 May 2024CA$623.5bCA$200.1bCA$48.7b10.6x12.8x3.1x
Tue, 23 Apr 2024CA$608.2bCA$199.0bCA$49.4b10.4x12.3x3.1x
Thu, 21 Mar 2024CA$615.7bCA$199.0bCA$49.4b10.9x12.5x3.1x
Sat, 17 Feb 2024CA$598.1bCA$195.5bCA$44.8b11x13.4x3.1x
Mon, 15 Jan 2024CA$596.9bCA$195.5bCA$44.8b10.8x13.3x3.1x
Wed, 13 Dec 2023CA$575.7bCA$195.3bCA$44.7b10.3x12.9x2.9x
Fri, 10 Nov 2023CA$540.7bCA$197.4bCA$51.6b9.4x10.5x2.7x
Sun, 08 Oct 2023CA$540.7bCA$197.4bCA$51.6b9.4x10.5x2.7x
Tue, 05 Sep 2023CA$575.5bCA$197.4bCA$51.6b10.2x11.1x2.9x
Thu, 03 Aug 2023CA$594.3bCA$192.8bCA$52.2b10.3x11.4x3.1x
Sat, 01 Jul 2023CA$583.0bCA$192.7bCA$52.1b10.1x11.2x3x
Mon, 29 May 2023CA$568.6bCA$192.5bCA$52.2b9.9x10.9x3x
Wed, 26 Apr 2023CA$585.3bCA$192.7bCA$57.6b9.5x10.2x3x
Fri, 24 Mar 2023CA$567.8bCA$192.7bCA$57.6b9.3x9.9x2.9x
Price to Earnings Ratio

9.9x


Total Market Cap: CA$567.8bTotal Earnings: CA$57.6bTotal Revenue: CA$192.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 12.9x202420252026
Current Industry PE
  • Investors are relatively neutral on the Canadian Banks industry at the moment, indicating that they anticipate long term growth rates to remain steady.
  • The industry is trading close to its 3-year average PE ratio of 12.9x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 4.0x.
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 Market-1.85%
Financials-1.48%
Banks-1.46%
Diversified Banks-1.41%
Regional Banks-10.11%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 10.5x.
    • Analysts are expecting annual earnings growth of 34.2%, which is higher than its past year's earnings decline of 25.6% per year.
  • Investors are most pessimistic about the Diversified Banks industry, which is trading close to its 3-year average of 12.9x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 34% 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 2.9% 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$224.211.0%
+CA$3.2b		39.2%PB2.4x
TD Toronto-Dominion BankCA$130.290.6%
+CA$1.1b		52.7%PB1.8x
CM Canadian Imperial Bank of CommerceCA$133.470.4%
+CA$524.6m		63.3%PB1.9x

Latest News

EQB
CA$106.54
EQB
7D
-10.1%
1Y
10.2%

EQB: Future Returns Will Depend On ROE Recovery And Capital Returns

The updated analyst price target for EQB moves to CA$123.50 from CA$117.17, reflecting recent Street target changes into the CA$122 to CA$132 range as analysts point to higher modeled profit margins and a lower future P/E multiple. Analyst Commentary Recent research updates on EQB cluster around higher price targets and refreshed views on earnings power, with most analysts staying constructive while a few turn slightly more cautious on how much upside is already reflected in the shares.
NA
CA$182.83
National Bank of Canada
7D
-1.5%
1Y
55.0%

NA: Future Share Returns Will Depend On Buybacks And Expense Control

The analyst price target for National Bank of Canada has been raised from CA$175.50 to CA$189.15, with analysts citing higher profit margin assumptions and updated sector research that has led several firms to move their targets into the CA$180 to CA$200 range. Analyst Commentary Recent Street research on National Bank of Canada shows a cluster of price target revisions into the high CA$170s to just above CA$200, with a mix of Buy, Outperform, Hold, Equal Weight and Sector Perform views.
LB
CA$40.12
Laurentian Bank of Canada
7D
-0.5%
1Y
47.9%

LB: Cash Offer And Stable Assumptions Will Shape Future Share Outcome

Analysts have adjusted their price target for Laurentian Bank of Canada to CA$40.43, reflecting updated assumptions on the discount rate, revenue growth, profit margin, and future P/E, while keeping fair value essentially unchanged. Analyst Commentary Recent commentary on other financial names offers a useful lens for thinking about how analysts may frame Laurentian Bank of Canada, especially around valuation, execution risk, and growth expectations.
RY
CA$224.21
Royal Bank of Canada
7D
1.0%
1Y
39.2%

RY: Future Returns Will Depend On Stable Credit And Measured Long Term Execution

The updated analyst price target for Royal Bank of Canada edges higher to about CA$245 from roughly CA$243. This reflects incremental adjustments to fair value and P/E assumptions as analysts factor in recent target moves across the Street.
BMO
CA$191.29
Bank of Montreal
7D
-0.8%
1Y
36.6%

BMO: Future Returns Will Reflect Clearer ROE Path And Execution Risks

The analyst price target for Bank of Montreal moves higher, with our fair value estimate rising by about CA$9 to CA$205.14 as analysts factor in recent target increases across the Street. This is supported by views of improved earnings quality, clearer ROE improvement timelines, and a more constructive outlook on capital markets and U.S. loan growth.
BNS
CA$95.75
Bank of Nova Scotia
7D
-0.5%
1Y
37.5%

BNS: ROE Concerns And Mixed Execution Will Shape Measured Re Rating Potential

The analyst price target for Bank of Nova Scotia has shifted slightly lower to CA$107.14 from CA$106.20 as analysts factor in more modest revenue growth, slightly lower profit margin assumptions and expectations that the bank's P/E discount to peers may persist amid concerns about return on equity and areas of underperformance in Canadian P&C and wealth management. Analyst Commentary Recent Street research on Bank of Nova Scotia has been mixed, with some price targets adjusted higher following quarterly results and others trimmed alongside rating downgrades.
TD
CA$130.29
Toronto-Dominion Bank
7D
0.6%
1Y
52.7%

TD: Future Will Reflect Easing Mortgage Risks And Ongoing Share Repurchases

Analysts have lifted their average price target for Toronto-Dominion Bank to about CA$141 from roughly CA$135, reflecting a series of recent target increases across the Street that reference stronger than expected results in several segments and updated earnings estimates. Analyst Commentary Recent research takes on Toronto-Dominion Bank cluster around higher target prices but with different views on how compelling the shares look at those levels.
CM
CA$133.47
Canadian Imperial Bank of Commerce
7D
0.4%
1Y
63.3%

CM: Future Earnings Balance Will Hinge On Credit Costs And Capital Markets Execution

The updated analyst price target for Canadian Imperial Bank of Commerce now stands at about CA$144, up from around CA$132. Analysts point to Q1 results that exceeded consensus and stronger profitability assumptions, including higher profit margins and a slightly lower implied future P/E, as key supports for the change.
VBNK
CA$19.17
VersaBank
7D
-1.5%
1Y
27.9%

VBNK: Stablecoin Custody Progress Will Support Future Earnings Power

Analysts have lifted their fair value estimate for VersaBank to CA$23.00 from CA$19.00, citing Street research that points to healthy loan growth, resilient revenue performance and early traction in the bank's stablecoin custody initiative as key supports for the higher price target. Analyst Commentary Bullish Takeaways Bullish analysts point to the higher fair value estimate as reflecting confidence that healthy loan growth can support VersaBank's earnings power over time, even with some pressure on net interest margins.