To varying degrees, the big-6 banks beat estimates in Q1…

… led by record trading activity, as expected after BNS kicked off reporting season with huge numbers in equities and fixed income. Given National (NA) and CIBC (CM) have more relative exposure…

… it’s not surprising to see them trade higher than peers on results, which were strong across business units - driving group-leading ROE expansion.

The extent to which that can drive valuations higher from here is unclear though, with multiples pretty extended at current levels (at or near peak)…

… and impaired loan balances remaining elevated - with all banks highlighting trade uncertainty and housing as areas of concern.

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