Big Canadian Banks Likely to Carry Strong Capital Markets Momentum -- Market Talk

Dow Jones12-10

1006 ET - The momentum in the big Canadian banks' capital markets operations looks set to continue in 2026, albeit likely at slower pace than the record levels seen in 2025, Morningstar DBRS analysis suggests. It expects activity in the new year will be driven by investment banking revenue as trading revenue likely normalizes, despite lingering macroeconomic uncertainty. Aggregate capital markets revenue for the six biggest banks rose 22% on-year in the second half of fiscal 2025, buoyed by elevated trading revenue and a significant acceleration in underwriting and advisory activity, Morningstar says. It notes North American and global stock indexes are at or near record highs, driving equity trading and issuance volumes, while merger and acquisition activity is also robust. (robb.stewart@wsj.com)

(END) Dow Jones Newswires

December 10, 2025 10:06 ET (15:06 GMT)

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