Bankers' Bonuses Rise 15% in 2025 as Profits Surge

Bankers' bonuses rose by 15 percent in 2025, reaching a total of $27.3 billion, as profits surged due to increased activity in capital markets and wealth management. All of Canada's Big Six banks raised their bonus pools, with National Bank of Canada seeing a 24 percent increase, while Bank of Montreal and Royal Bank of Canada both reported a 13 percent rise.

CIBC increased its bonus pool by 17 percent, and TD Bank allocated $5.1 billion for incentive pay, marking a 14 percent increase year-over-year. Profit in capital markets divisions rose significantly, with National Bank's profits climbing 34 percent, while Bank of Nova Scotia and CIBC reported increases of 30 and 44 percent, respectively.

Despite a challenging economic outlook earlier in the year due to U.S. trade war concerns, volatility sparked heightened trading and deal-making activity in key sectors such as energy and mining. The performance-based compensation is primarily directed towards capital markets staff, including analysts, traders, and investment bankers.

The strong financial performance across the sector bodes well for future growth, with analysts optimistic about continued activity in 2026 and beyond, as reflected in the rising share prices of the banks involved.