Year-end bonuses at Canada’s six largest banks are up an average of 12% from last year despite the nation’s lenders posting mixed financial results.
According to a report from Johnson Associates, Canada’s Big Six banks have set aside 12.2% more on average for year-end bonus pay this December.
The rise in bonuses comes despite the fact that many of Canada’s top banks reported poor financial results in recent quarters, and amid a dearth of deals on Bay Street.
In 2024, there was only one significant initial public offering (IPO) in Canada when Groupe Dynamite (GRGD) went public. There was also little in the way of mergers and acquisitions (M&A) during the year.
Still, bankers in Canada are poised to see double-digit increases in year-end incentive pay.
Capital-markets professionals such as investment bankers, analysts, salespeople, and traders often count on a large portion of their take-home pay coming from bonuses.
Bonus pay at Royal Bank (RY) and CIBC (CM) is increasing the most this year, by 16.2% and 19.1%, respectively. National Bank (NA) is raising its bonus pay by 13.9% this year.
Bank of Montreal (BMO) and Bank of Nova Scotia (BNS) are raising their bonus pay by less amounts of 5.1% and 4.2%, respectively. Each bank has struggled this year.
At Toronto-Dominion (TD), bonuses are increasing 10.2% from 2023 levels despite a rough year for the lender, which reached a $3.1 billion settlement with U.S. authorities over money-laundering charges.
While deals on Bay Street have been few and far between this past year, the Toronto Stock Exchange has risen to record heights over the last 12 months.
