The big-6 Canadian banks beat across the board in Q2, though in a less convincing fashion than last quarter…

… despite continued strength in wealth management and capital markets - with AUM, trading activity, and advisory work all up big Y/Y. The durability of those earnings tailwinds was a focus for analysts…

… which represents downside risk for the group, given the majority of NIM expansion is in the rearview and credit risk remains sticky.

Alongside some company-specific factors for CIBC (H2 guide, Caribbean sale) and National (expense growth), those dynamics drove weak trading…

… as investors assess whether the backdrop is supportive of peak post-GFC multiples.