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Canadian (TSX) Banks Industry Analysis

UpdatedApr 12, 2026
DataAggregated Company Financials
Companies9
  • 7D5.0%
  • 3M5.2%
  • 1Y61.8%
  • YTD5.6%

Over the last 7 days, the Banks industry has risen 5.0%, driven by gains from every company within the industry. In the last 12 months, the industry was up 62%. 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
Sun, 12 Apr 2026CA$1.0tCA$239.6bCA$72.1b16.3x14.5x4.4x
Tue, 10 Mar 2026CA$988.8bCA$239.6bCA$72.1b15.8x13.7x4.1x
Thu, 05 Feb 2026CA$999.1bCA$231.5bCA$67.7b16.4x14.8x4.3x
Sat, 03 Jan 2026CA$987.2bCA$231.5bCA$67.7b15.6x14.6x4.3x
Mon, 01 Dec 2025CA$935.4bCA$227.2bCA$66.1b15.2x14.2x4.1x
Wed, 29 Oct 2025CA$902.6bCA$227.2bCA$66.1b15.3x13.7x4x
Fri, 26 Sep 2025CA$882.0bCA$227.2bCA$66.1b15.3x13.4x3.9x
Sun, 24 Aug 2025CA$819.7bCA$219.5bCA$60.4b14.6x13.6x3.7x
Tue, 22 Jul 2025CA$796.5bCA$219.5bCA$60.4b14.5x13.2x3.6x
Thu, 19 Jun 2025CA$756.2bCA$219.5bCA$60.4b13.4x12.5x3.4x
Sat, 17 May 2025CA$740.5bCA$207.7bCA$51.1b13.9x14.5x3.6x
Mon, 14 Apr 2025CA$659.8bCA$207.7bCA$51.1b12.1x12.9x3.2x
Wed, 12 Mar 2025CA$694.6bCA$207.7bCA$51.1b12.9x13.6x3.3x
Fri, 07 Feb 2025CA$715.6bCA$202.5bCA$49.4b14.3x14.5x3.5x
Sun, 05 Jan 2025CA$721.4bCA$203.6bCA$49.6b14.6x14.5x3.5x
Tue, 03 Dec 2024CA$729.1bCA$206.4bCA$47.7b14.2x15.3x3.5x
Thu, 31 Oct 2024CA$703.0bCA$206.4bCA$47.7b13x14.8x3.4x
Sat, 28 Sep 2024CA$700.8bCA$206.4bCA$47.7b12.9x14.7x3.4x
Mon, 26 Aug 2024CA$649.2bCA$203.5bCA$46.6b12.3x13.9x3.2x
Wed, 24 Jul 2024CA$637.6bCA$202.7bCA$49.6b11.6x12.8x3.1x
Fri, 21 Jun 2024CA$599.0bCA$202.7bCA$49.6b11x12.1x3x
Sun, 19 May 2024CA$628.0bCA$199.0bCA$49.4b10.7x12.7x3.2x
Tue, 16 Apr 2024CA$611.5bCA$199.0bCA$49.4b10.5x12.4x3.1x
Thu, 14 Mar 2024CA$618.9bCA$199.0bCA$49.4b10.8x12.5x3.1x
Sat, 10 Feb 2024CA$592.4bCA$195.5bCA$44.8b10.9x13.2x3x
Mon, 08 Jan 2024CA$616.6bCA$195.5bCA$44.8b10.8x13.8x3.2x
Wed, 06 Dec 2023CA$568.7bCA$193.7bCA$44.7b10.2x12.7x2.9x
Fri, 03 Nov 2023CA$520.7bCA$197.4bCA$51.6b9.3x10.1x2.6x
Sun, 01 Oct 2023CA$556.2bCA$197.4bCA$51.6b9.6x10.8x2.8x
Tue, 29 Aug 2023CA$561.3bCA$196.3bCA$52.2b9.9x10.8x2.9x
Thu, 27 Jul 2023CA$602.0bCA$192.7bCA$52.1b10.7x11.5x3.1x
Sat, 24 Jun 2023CA$560.3bCA$192.7bCA$52.1b9.7x10.7x2.9x
Mon, 22 May 2023CA$582.3bCA$192.7bCA$57.6b9.1x10.1x3x
Wed, 19 Apr 2023CA$600.8bCA$192.7bCA$57.6b9.8x10.4x3.1x
Price to Earnings Ratio

10.4x


Total Market Cap: CA$600.8bTotal 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 optimistic on the Canadian Banks industry, and appear confident in long term growth rates.
  • The industry is trading at a PE ratio of 14.5x which is higher than its 3-year average PE of 13.0x.
  • The 3-year average PS ratio of 3.4x is lower than the industry's current PS ratio of 4.4x.
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 Market2.05%
Financials3.84%
Banks4.96%
Diversified Banks4.97%
Regional Banks2.60%
Industry PE
  • Investors are most optimistic about the Regional Banks industry which is trading above its 3-year average PE ratio of 10.8x.
    • Analysts are expecting annual earnings growth of 34.7%, 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 13.0x.
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 2.9% 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$237.864.6%
+CA$14.7b		51.2%PB2.6x
TD Toronto-Dominion BankCA$139.285.1%
+CA$11.3b		71.8%PB1.9x
CM Canadian Imperial Bank of CommerceCA$142.666.5%
+CA$8.0b		79.9%PB2.1x
BMO Bank of MontrealCA$199.735.3%
+CA$7.1b		57.8%PB1.7x
NA National Bank of CanadaCA$195.725.8%
+CA$4.1b		72.6%PB2.4x

Latest News

CM
CA$142.66
Canadian Imperial Bank of Commerce
7D
6.5%
1Y
79.9%
EQB
CA$113.28
EQB
7D
0.5%
1Y
25.2%

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

EQB's updated analyst price target has shifted modestly higher to CA$121.61, reflecting a slightly lower discount rate and largely unchanged P/E and margin assumptions as analysts balance recent target moves and mixed rating actions across the Street. Analyst Commentary Recent Street research on EQB points to a split view, with some raising price targets and ratings while others turn more cautious.
VBNK
CA$23.40
VersaBank
7D
15.6%
1Y
80.0%
NA
CA$195.72
National Bank of Canada
7D
5.8%
1Y
72.6%

NA: Future Returns Will Reflect Buybacks Balanced Against Mortgage Renewal Execution Risks

Analysts have inched up the average price target for National Bank of Canada to around CA$190, with recent moves into the CA$179 to CA$202 range reflecting updated views on Q1 results, mortgage renewal risks, and refreshed earnings estimates across the Canadian bank group. Analyst Commentary Recent Street research on National Bank of Canada clusters around higher price targets in the CA$179 to CA$202 range, with a mix of Buy, Outperform, Hold, Sector Perform and Equal Weight ratings.
RY
CA$237.86
Royal Bank of Canada
7D
4.6%
1Y
51.2%

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

Narrative Update Analysts have nudged the average price target for Royal Bank of Canada slightly higher to around CA$245. This reflects a series of recent target revisions in the CA$245 to CA$259 range that factor in updated earnings estimates, expectations for modest balance sheet growth, stable net interest income, controlled expenses, steady credit quality and ongoing share repurchases.
BMO
CA$199.73
Bank of Montreal
7D
5.3%
1Y
57.8%

BMO: Future Returns Will Hinge On ROE Delivery And Capital Markets Momentum

The analyst price target for Bank of Montreal has been nudged higher to approximately CA$204.43 from about CA$204.14, with analysts pointing to updated views on revenue growth, discount rates and future P/E assumptions, along with a series of recent target raises that balance mixed ratings across the Street. Analyst Commentary Recent research on Bank of Montreal offers a mix of optimism and caution, with several firms updating targets and ratings around the latest earnings and sector outlooks.
TD
CA$139.28
Toronto-Dominion Bank
7D
5.1%
1Y
71.8%

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

Analysts have nudged the fair value estimate for Toronto-Dominion Bank slightly lower to CA$140.43 from CA$141.14, even as several firms raised their price targets into a CA$135 to CA$148 range. They cited stronger than expected recent results in most segments, updated longer term earnings estimates, and reduced concern around mortgage renewals.
BNS
CA$100.85
Bank of Nova Scotia
7D
3.3%
1Y
57.7%