Canadian Dealmaking Hits $376 Billion in First Half as Bank Outlook Improves

Canada's financial sector is showing renewed strength, with deal activity surging and the outlook for the country's biggest banks improving. Bankers and lawyers reported that mergers, acquisitions and a revival in initial public offerings helped fuel about $376 billion of dealmaking in the first half of 2026, a notable rebound after a prolonged slowdown in listings between 2022 and 2024. The pickup has come despite trade tensions with the United States, broader geopolitical uncertainty and an economy that has been growing only modestly. At the same time, the credit-rating agency Fitch upgraded its outlook on the Canadian banking sector from 'deteriorating' to 'neutral' after the country's Big Six lenders posted stronger-than-expected profits in the first half of the year, easing earlier worries about the impact of slower growth and cross-border frictions. Together, the buoyant capital markets and improved bank earnings suggest Canada's financial system has weathered a difficult period better than many had feared. The results will be watched closely for signs of whether the momentum can continue in the second half amid ongoing trade and geopolitical risks.