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Canadian (TSX) Banks Industry Analysis

UpdatedAug 10, 2025
DataAggregated Company Financials
Companies9
  • 7D1.6%
  • 3M10.6%
  • 1Y27.9%
  • YTD11.5%

The Banks industry is up 1.6% in the last week, with Royal Bank of Canada up 2.8%. During this same period, the VersaBank underperformed, falling 11%. This means that the industry has gained 28% over the past year. As for the next few years, earnings are expected to grow by 2.9% per annum.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
Sun, 10 Aug 2025CA$795.4bCA$219.5bCA$60.4b14.3x13.2x3.6x
Tue, 08 Jul 2025CA$785.4bCA$219.5bCA$60.4b14.1x13x3.6x
Thu, 05 Jun 2025CA$754.8bCA$219.5bCA$60.4b13.6x12.5x3.4x
Sat, 03 May 2025CA$705.5bCA$207.7bCA$51.1b13.2x13.8x3.4x
Mon, 31 Mar 2025CA$690.1bCA$207.7bCA$51.1b12.9x13.5x3.3x
Wed, 26 Feb 2025CA$717.1bCA$204.5bCA$49.1b14x14.6x3.5x
Fri, 24 Jan 2025CA$728.2bCA$203.6bCA$49.6b15.2x14.7x3.6x
Sun, 22 Dec 2024CA$717.2bCA$203.6bCA$49.6b13x14.4x3.5x
Tue, 19 Nov 2024CA$712.1bCA$206.4bCA$47.7b13.6x14.9x3.5x
Thu, 17 Oct 2024CA$703.5bCA$206.4bCA$47.7b13x14.8x3.4x
Sat, 14 Sep 2024CA$688.5bCA$206.4bCA$47.7b12.4x14.4x3.3x
Mon, 12 Aug 2024CA$623.2bCA$202.7bCA$49.6b11.7x12.6x3.1x
Wed, 10 Jul 2024CA$612.2bCA$202.7bCA$49.6b11.5x12.3x3x
Fri, 07 Jun 2024CA$619.7bCA$202.7bCA$49.6b10.8x12.5x3.1x
Sun, 05 May 2024CA$604.3bCA$199.0bCA$49.4b10.4x12.2x3x
Tue, 02 Apr 2024CA$630.2bCA$199.0bCA$49.4b10.9x12.8x3.2x
Thu, 29 Feb 2024CA$599.0bCA$197.8bCA$46.4b11x12.9x3x
Sat, 27 Jan 2024CA$602.5bCA$195.5bCA$44.8b10.8x13.5x3.1x
Mon, 25 Dec 2023CA$613.2bCA$195.5bCA$44.8b10.8x13.7x3.1x
Wed, 22 Nov 2023CA$564.9bCA$197.4bCA$51.6b9.7x10.9x2.9x
Fri, 20 Oct 2023CA$533.5bCA$197.4bCA$51.6b9.3x10.3x2.7x
Sun, 17 Sep 2023CA$581.8bCA$197.4bCA$51.6b10.2x11.3x2.9x
Tue, 15 Aug 2023CA$589.9bCA$192.8bCA$52.2b10.2x11.3x3.1x
Thu, 13 Jul 2023CA$580.9bCA$192.7bCA$52.1b10.2x11.1x3x
Sat, 10 Jun 2023CA$570.1bCA$192.7bCA$52.1b9.9x10.9x3x
Mon, 08 May 2023CA$588.4bCA$192.7bCA$57.6b9x10.2x3.1x
Wed, 05 Apr 2023CA$585.6bCA$192.7bCA$57.6b9.6x10.2x3x
Fri, 03 Mar 2023CA$618.8bCA$190.5bCA$59.5b9.4x10.4x3.2x
Sun, 29 Jan 2023CA$622.5bCA$191.8bCA$65.6b8.9x9.5x3.2x
Tue, 27 Dec 2022CA$587.5bCA$191.8bCA$65.6b8.2x9x3.1x
Thu, 24 Nov 2022CA$621.3bCA$185.3bCA$61.0b10x10.2x3.4x
Sat, 22 Oct 2022CA$575.6bCA$185.3bCA$61.0b9x9.4x3.1x
Mon, 19 Sep 2022CA$597.2bCA$185.3bCA$61.0b9.2x9.8x3.2x
Wed, 17 Aug 2022CA$627.0bCA$188.4bCA$63.0b9.7x10x3.3x
Price to Earnings Ratio

10x


Total Market Cap: CA$627.0bTotal Earnings: CA$63.0bTotal Revenue: CA$188.4bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 12x202320242025
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 12.0x.
  • The 3-year average PS ratio of 3.2x is lower than the industry's current PS ratio of 3.6x.
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 5.2% 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 Market1.30%
Financials0.81%
Banks1.58%
Diversified Banks1.60%
Regional Banks-2.33%
Industry PE
  • Investors are most optimistic about the Diversified Banks industry, which is trading close to its 3-year average PE ratio of 12.1x.
    • Analysts are expecting annual earnings growth of 2.8%, which is lower than the prior year's growth of 20.7% per year.
  • Investors are most pessimistic about the Regional Banks industry, although it looks like investor sentiment has improved given that it's trading above its 3-year average of 9.4x.
Forecasted Growth
  • Analysts are most optimistic on the Regional Banks industry, expecting annual earnings growth of 16% over the next 5 years.
  • This is better than its past earnings decline of 20% 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$182.372.8%
+CA$6.9b		21.7%PB2.1x
BMO Bank of MontrealCA$155.211.5%
+CA$1.7b		38.6%PB1.3x
NA National Bank of CanadaCA$146.692.3%
+CA$1.3b		28.7%PB1.8x
TD Toronto-Dominion BankCA$100.760.7%
+CA$1.2b		28.6%PB1.4x
CM Canadian Imperial Bank of CommerceCA$99.950.9%
+CA$822.1m		42.9%PB1.6x

Latest News

TD
CA$100.76
Toronto-Dominion Bank
7D
0.7%
1Y
28.6%
EQB
CA$101.63
EQB
7D
-1.2%
1Y
7.2%
VBNK
CA$14.09
VersaBank
7D
-11.0%
1Y
-9.9%
NA
CA$146.69
National Bank of Canada
7D
2.3%
1Y
28.7%
RY
CA$182.37
Royal Bank of Canada
7D
2.8%
1Y
21.7%
BNS
CA$77.03
Bank of Nova Scotia
7D
0.7%
1Y
21.0%
BMO
CA$155.21
Bank of Montreal
7D
1.5%
1Y
38.6%
CM
CA$99.95
Canadian Imperial Bank of Commerce
7D
0.9%
1Y
42.9%
LB
CA$30.54
Laurentian Bank of Canada
7D
0.1%
1Y
19.3%