2025 Credit Outlook: Canadian Banking

The overall F2025 credit rating outlook for the Canadian banks is largely stable, as we expect monetary policy easing to provide some much-needed relief to indebted consumers and businesses. Although we expect further deterioration in credit metrics heading into 2025, an anticipated moderation in PCL in the second half of the year and a generally positive economic growth outlook in North America will likely result in improved earnings. However, the operating and macroeconomic environments still face some challenges with risks skewed heavily to the downside as a result of heightened policy uncertainty and geopolitical risks. Join us for a discussion on growth, profitability, credit quality, and capitalization of large and medium-sized Canadian banks in the year ahead.