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Canadian (TSX) Banks Industry Analysis

UpdatedMar 30, 2026
DataAggregated Company Financials
Companies9
  • 7D0.4%
  • 3M-2.9%
  • 1Y42.0%
  • YTD-3.1%

The Banks industry has stayed flat over the last week. As for the the longer term, the industry is up 42% over the past 12 months. Earnings are forecast to grow by 3.0% annually.

Industry Valuation and Performance

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

DateMarket CapRevenueEarningsPEAbsolute PEPS
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
Thu, 06 Apr 2023CA$581.3bCA$192.7bCA$57.6b9.5x10.1x3x
Price to Earnings Ratio

10.1x


Total Market Cap: CA$581.3bTotal Earnings: CA$57.6bTotal Revenue: CA$192.7bTotal Market Cap vs Earnings and Revenue0%0%0%
Canadian Banks Industry Price to Earnings3Y Average 13x202420252026
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 13.0x.
  • 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 Market2.28%
Financials0.59%
Banks0.41%
Regional Banks3.41%
Diversified Banks0.39%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 10.7x.
    • Analysts are expecting annual earnings growth of 34.3%, 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 13.0x.
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
VBNK VersaBankCA$19.342.4%
+CA$14.8m		30.4%PB1.1x
LB Laurentian Bank of CanadaCA$40.180.05%
+CA$895.6k		47.3%PB0.7x

Latest News

BNS
CA$94.09
Bank of Nova Scotia
7D
-1.0%
1Y
37.9%

BNS: Sustained P/E Discount Will Support Measured Upside On ROE Execution

Narrative Update on Bank of Nova Scotia The updated analyst price target for Bank of Nova Scotia now sits at CA$110, a CA$8 reduction, as analysts factor in expectations for a sustained P/E discount to peers, given relatively modest return on equity and concerns that the bank could lag competitors as investor focus shifts toward balance sheet growth. Analyst Commentary Recent Street research on Bank of Nova Scotia shows a mix of optimism on earnings execution and caution around relative valuation and return on equity.
NA
CA$177.49
National Bank of Canada
7D
-0.9%
1Y
49.4%

NA: Future Returns Will Reflect Buybacks And Discipline On Expenses And Mortgage Risk

Analysts have raised the average price target range on National Bank of Canada to roughly the CA$182 to CA$202 band, citing modestly better than expected Q1 results, updated earnings estimates through FY27, and sector-wide adjustments linked to easing mortgage renewal concerns. Analyst Commentary Recent research points to a tight CA$182 to CA$202 valuation band for National Bank of Canada, with multiple firms adjusting price targets following Q1 results, updated earnings frameworks through FY27, and sector wide revisions linked to mortgage renewal risk.
EQB
CA$110.84
EQB
7D
0.4%
1Y
13.6%

EQB: Future Returns Will Hinge On ROE Recovery And Buyback Execution

Narrative Update on EQB The analyst price target for EQB has been trimmed slightly, with the modelled fair value easing from CA$123.50 to about CA$121.61, as analysts factor in a modestly lower profit margin outlook and a slightly higher discount rate, despite several recent target increases from major banks. Analyst Commentary Recent Street research on EQB shows a mix of optimism on execution and growth potential alongside fresh caution on risk and valuation, which helps explain why the modelled fair value has held close to, but slightly below, the higher end of published targets.
BMO
CA$183.03
Bank of Montreal
7D
-2.8%
1Y
33.2%

BMO: Future Returns Will Balance ROE Execution With Capital Markets Uncertainty

Analysts have trimmed the Bank of Montreal fair value estimate by about CA$1 to CA$204.14. This reflects a slightly higher discount rate and updated price targets in the CA$199 to CA$219 range that factor in recent earnings, return on equity initiatives and capital markets expectations.
LB
CA$40.18
Laurentian Bank of Canada
7D
0.05%
1Y
47.3%

LB: Stable Assumptions And Execution Risks Will Shape Future Share Path

Narrative Update Analysts have trimmed their price target on Laurentian Bank of Canada by CA$0.00, reflecting slightly higher discount rate assumptions and modestly adjusted expectations for revenue growth, profit margins, and future P/E multiples. Analyst Commentary While recent Street research references another company, the themes analysts are focused on, such as growth visibility, revenue quality, and valuation support, are directly relevant to how you might think about Laurentian Bank of Canada.
RY
CA$219.85
Royal Bank of Canada
7D
-0.9%
1Y
35.6%

RY: Future Returns Will Rely On Stable Credit And Measured AI Enabled Execution

Narrative Update The analyst price target for Royal Bank of Canada has edged higher by CA$0.07 to CA$245.07, as analysts factor in updated earnings assumptions, modest tweaks to P/E expectations, and recent Street research that has generally nudged targets upward within the CA$245 to CA$259 range. Analyst Commentary Recent research on Royal Bank of Canada points to a cluster of target prices in the mid C$240s to high C$250s, with ratings in the Outperform, Buy and Overweight range.
VBNK
CA$19.34
VersaBank
7D
2.4%
1Y
30.4%
TD
CA$126.87
Toronto-Dominion Bank
7D
-1.2%
1Y
47.1%

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

The analyst price target for Toronto-Dominion Bank has shifted slightly higher to CA$141.14 from CA$141.07, as analysts incorporate recent target increases across the Street, along with updated views on revenue trends, profitability, and future P/E assumptions. Analyst Commentary Recent Street research on Toronto-Dominion Bank points to a cluster of price target revisions that sit around the current consensus, with a mix of more optimistic and more cautious views on execution, valuation, and earnings durability.
CM
CA$128.90
Canadian Imperial Bank of Commerce
7D
-2.8%
1Y
59.2%

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

The analyst price target for Canadian Imperial Bank of Commerce has moved slightly to CA$143.75 from CA$143.97, reflecting a series of recent Street target increases that cite stronger than expected Q1 results, improving profitability metrics, and updated longer term earnings estimates across the Canadian bank group. Analyst Commentary Recent Street research on Canadian Imperial Bank of Commerce has been active, with several firms updating targets and views around the latest Q1 print and longer term earnings estimates.