Canadian banks reported mixed second-quarter 2025 earnings amid ongoing economic uncertainty and trade tensions. Bank of Montreal (BMO) posted adjusted earnings per share (EPS) of $1.91 USD (CAD$2.62) and revenue of $6.32 billion USD (CAD$8.68 billion), with strong revenue and pre-provision earnings growth across all operating groups. BMO also raised its dividend by 2.5% to CAD$1.63. Canadian Imperial Bank of Commerce (CIBC) exceeded expectations with an adjusted EPS of CAD$2.05 and revenue of CAD$7.02 billion, driven by strength in capital markets and better-than-expected provisions for bad loans. CIBC reported a net profit of CAD$2.01 billion, up from CAD$1.75 billion a year earlier. The Royal Bank of Canada (RBC) reported a second-quarter profit of CAD$4.4 billion, up from CAD$3.95 billion in the same period last year, but missed analyst earnings estimates due to higher loan loss provisions totaling CAD$1.42 billion, well above forecasts. RBC's adjusted EPS was CAD$3.12, below the expected CAD$3.18. The bank cited macroeconomic headwinds and increased risk from U.S. tariffs as reasons for the elevated provisions. National Bank of Canada also posted higher quarterly profits and increased loan loss provisions, raising its dividend by 3.5% to CAD$1.18. Laurentian Bank of Canada reported a net income of CAD$32.3 million in Q2, a turnaround from a net loss of CAD$117.5 million in the same quarter last year. In the U.S., bank profits climbed 5.8% in Q1 2025 to $70.6 billion, driven by higher noninterest income, according to the Federal Deposit Insurance Corporation (FDIC). However, U.S. banks also increased loan loss provisions by 9.4% year-over-year amid slower loan growth and concerns over commercial real estate. Overall, Canadian banks are navigating a challenging environment marked by tariff tensions, slowing economic growth, and rising credit risks, prompting cautious capital management and increased provisions for potential loan defaults.