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Canadian (TSX) Banks Industry Analysis

UpdatedDec 15, 2025
DataAggregated Company Financials
Companies9
  • 7D1.8%
  • 3M13.4%
  • 1Y35.7%
  • YTD38.4%

Over the last 7 days, the Banks industry has risen 1.8%, driven by gains from every company within the industry. This takes the industry's 12 month performance to a gain of 36%. Earnings are forecast to grow by 2.5% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Tue, 16 Dec 2025CA$976.9bCA$231.5bCA$67.7b15.6x14.4x4.2x
Thu, 13 Nov 2025CA$907.6bCA$227.2bCA$66.1b15.2x13.7x4x
Sat, 11 Oct 2025CA$884.9bCA$227.2bCA$66.1b15.1x13.4x3.9x
Mon, 08 Sep 2025CA$855.1bCA$227.2bCA$66.1b15x12.9x3.8x
Wed, 06 Aug 2025CA$783.0bCA$219.5bCA$60.4b14.2x13x3.6x
Fri, 04 Jul 2025CA$780.6bCA$219.5bCA$60.4b14.2x12.9x3.6x
Sun, 01 Jun 2025CA$752.0bCA$219.5bCA$60.4b13.6x12.5x3.4x
Tue, 29 Apr 2025CA$693.0bCA$207.7bCA$51.1b12.9x13.6x3.3x
Thu, 27 Mar 2025CA$707.0bCA$207.7bCA$51.1b13.3x13.8x3.4x
Sat, 22 Feb 2025CA$717.2bCA$202.5bCA$49.4b14.2x14.5x3.5x
Mon, 20 Jan 2025CA$728.2bCA$203.6bCA$49.6b15.1x14.7x3.6x
Wed, 18 Dec 2024CA$729.0bCA$195.5bCA$50.2b13.2x14.5x3.7x
Fri, 15 Nov 2024CA$710.9bCA$206.4bCA$47.7b13.3x14.9x3.4x
Sun, 13 Oct 2024CA$695.3bCA$206.4bCA$47.7b12.7x14.6x3.4x
Tue, 10 Sep 2024CA$680.5bCA$206.4bCA$47.7b12.2x14.3x3.3x
Thu, 08 Aug 2024CA$614.8bCA$202.7bCA$49.6b11.5x12.4x3x
Sat, 06 Jul 2024CA$614.6bCA$202.7bCA$49.6b11.3x12.4x3x
Mon, 03 Jun 2024CA$623.3bCA$201.0bCA$49.5b10.7x12.6x3.1x
Wed, 01 May 2024CA$604.2bCA$199.0bCA$49.4b10.2x12.2x3x
Fri, 29 Mar 2024CA$628.2bCA$199.0bCA$49.4b11.1x12.7x3.2x
Sun, 25 Feb 2024CA$605.8bCA$195.5bCA$44.8b11.1x13.5x3.1x
Tue, 23 Jan 2024CA$600.7bCA$195.5bCA$44.8b10.7x13.4x3.1x
Thu, 21 Dec 2023CA$607.8bCA$195.5bCA$44.8b10.7x13.6x3.1x
Sat, 18 Nov 2023CA$559.9bCA$197.4bCA$51.6b9.7x10.8x2.8x
Mon, 16 Oct 2023CA$539.4bCA$197.4bCA$51.6b9.3x10.4x2.7x
Wed, 13 Sep 2023CA$565.6bCA$197.4bCA$51.6b10x11x2.9x
Fri, 11 Aug 2023CA$591.8bCA$192.8bCA$52.2b10.2x11.3x3.1x
Sun, 09 Jul 2023CA$575.4bCA$192.7bCA$52.1b10.3x11x3x
Tue, 06 Jun 2023CA$571.1bCA$192.7bCA$52.1b9.9x11x3x
Thu, 04 May 2023CA$583.7bCA$192.7bCA$57.6b9.5x10.1x3x
Sat, 01 Apr 2023CA$584.6bCA$192.7bCA$57.6b9.6x10.2x3x
Mon, 27 Feb 2023CA$627.3bCA$192.0bCA$64.1b9.6x9.8x3.3x
Wed, 25 Jan 2023CA$617.0bCA$191.8bCA$65.6b8.7x9.4x3.2x
Fri, 23 Dec 2022CA$585.0bCA$191.8bCA$65.6b8.3x8.9x3.1x
Price to Earnings Ratio

8.9x


Total Market Cap: CA$585.0bTotal Earnings: CA$65.6bTotal Revenue: CA$191.8bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 12.5x202320242025
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 14.4x which is higher than its 3-year average PE of 12.5x.
  • The 3-year average PS ratio of 3.3x is lower than the industry's current PS ratio of 4.2x.
Past Earnings Growth
  • The earnings for companies in the Banks industry have remained mostly flat over the last three years.
  • Meanwhile revenues for these companies have grown 6.5% per year.
  • This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.

Industry Trends

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

CA Market0.76%
Financials1.60%
Banks1.75%
Regional Banks3.45%
Diversified Banks1.74%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 9.8x.
    • Analysts are expecting annual earnings growth of 34.7%, which is higher than its past year's earnings decline of 30.4% 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 12.5x.
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 30% per year.
  • In contrast, the Diversified Banks industry is expected to see its earnings grow by 2.3% 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
TD Toronto-Dominion BankCA$126.753.8%
+CA$7.8b		67.5%PB1.7x
RY Royal Bank of CanadaCA$230.101.6%
+CA$5.1b		29.7%PB2.5x
BMO Bank of MontrealCA$181.913.7%
+CA$4.6b		29.3%PB1.5x
CM Canadian Imperial Bank of CommerceCA$128.382.7%
+CA$3.1b		36.2%PB1.9x
BNS Bank of Nova ScotiaCA$100.551.2%
+CA$1.4b		28.3%PB1.4x

Latest News

VBNK
CA$19.59
VersaBank
7D
14.8%
1Y
-8.2%
NA
CA$173.21
National Bank of Canada
7D
0.8%
1Y
29.9%
BNS
CA$100.55
Bank of Nova Scotia
7D
1.2%
1Y
28.3%
TD
CA$126.75
Toronto-Dominion Bank
7D
3.8%
1Y
67.5%

TD: Future Will Balance U.S. Regulatory Overhang And Capital Return Initiatives

Analysts have nudged their fair value estimate for Toronto Dominion Bank higher to approximately C$125 from about C$118, reflecting upwardly revised price targets supported by expectations for improving revenue trends, resilient earnings growth, and disciplined capital deployment under new leadership, despite ongoing U.S. regulatory overhang. Analyst Commentary Street research has turned more constructive on Toronto Dominion Bank in recent months, with a series of upward price target revisions reflecting improving growth expectations and greater confidence in managements strategic roadmap.
CM
CA$128.38
Canadian Imperial Bank of Commerce
7D
2.7%
1Y
36.2%
BMO
CA$181.91
Bank of Montreal
7D
3.7%
1Y
29.3%

BMO: Future Returns Will Reflect U.S. Branch Sales And Credit Recovery

The analyst price target for Bank of Montreal has been nudged higher by about C$5 to C$181. Analysts are factoring in modestly stronger revenue growth and profitability expectations, while still reflecting a higher perceived risk profile in their discount rates.
RY
CA$230.10
Royal Bank of Canada
7D
1.6%
1Y
29.7%

RY: Future Returns Will Rely On Diversified Mix Amid Upgrades And Execution Risk

Analysts have raised their fair value estimate for Royal Bank of Canada to C$228.60 from about C$219.27. They cite a series of price target increases and upgrades that highlight the bank's leading return on equity, diversified and resilient business mix, and expectations for stronger revenue growth and margins, even as its future price to earnings multiple moderates slightly.
EQB
CA$98.00
EQB
7D
1.7%
1Y
-1.5%