Core Insights - Canadian banks are increasing their banker bonus pools by 15% for fiscal 2025, driven by active capital-markets divisions and trading activity influenced by U.S. policy changes [1][2] Group 1: Bonus Pool Increases - Bank of Nova Scotia, National Bank of Canada, and Canadian Imperial Bank of Commerce have raised their bonus reserves by 17% to 24% compared to the previous year [1] - Royal Bank of Canada, Toronto-Dominion Bank, and Bank of Montreal have set aside approximately 13% to 14% more for bonuses this year [2] - The average increase in incentive pay follows a 12% rise in fiscal 2024 and a 9% increase the year before [2] Group 2: Performance Drivers - Capital markets units at the Big Six banks experienced a 29% average increase in net income this year, contributing to heightened bonus expectations [4] - Strong performance in fixed-income desks and increased deals activity, particularly in mining and natural resources, have bolstered capital markets performance [4] Group 3: Hiring Trends - There is a high demand for talent in capital markets, with hiring occurring at Canadian institutions, global banks, and boutique firms [7] - Royal Bank of Canada has significantly invested in talent, adding 90 new financial advisers in its U.S. wealth-management business [9] Group 4: Individual Bank Strategies - Royal Bank of Canada allocated nearly C$10 billion ($7.2 billion) for incentive pay, nearly double that of Toronto-Dominion Bank [8] - National Bank's capital-markets division saw earnings rise by over 34% in fiscal 2025, influenced by its acquisition of Canadian Western Bank [14][15] - Toronto-Dominion, Bank of Montreal, and Scotiabank are undergoing restructuring while still achieving strong results in their markets-related units [10][11]