Canadian Banks in 2025- Earnings, Credit and Regulatory Challenges: BI Webinar Replay

Although the Bank of Canada has started its monetary policy easing cycle, credit, regulatory, and regional challenges still persist for the Canadian banks. Housing costs continue to weigh down Canadian households, commercial real estate, particularly the office sector, remains a concern, the U.S. regional bank sector is posing headwinds, regulatory developments continue to drive capital management strategies, and operational risk management issues are causing heightened concerns. These trends could limit 2025 earnings upside, muting loan and deposit growth potential to single digits, as rate cuts could start weighing on interest margins. Consumers and businesses get breathing room, yet credit provisions could remain elevated. Banks with large capital markets and wealth management operations stand to outpace peers if markets remain constructive.