Big ups and downs in commodity prices amid geopolitical tensions have made stocks volatile in 2026. And that seems to be testing investors’ patience. While this short-term noise can be distracting, Foolish investors may want to stay focused on the bigger picture and continue to hold fundamentally strong businesses that quietly build long-term wealth.
That’s especially true for Canadian bank stocks as they’ve long been known for their resilience, consistent earnings, and ability to reward shareholders through both dividends and capital appreciation. Even during uncertain economic periods, these large banks have shown an ability to adapt and grow. In this article, I’ll take a closer look at two top Canadian stocks from the banking sector that could be worth buying today and holding for at least the next five years.
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A steady compounder with global strength
Royal Bank of Canada (TSX: RY) continues to set the benchmark for stability and performance in the Canadian bank sector. With operations spanning personal and commercial banking, wealth management, capital markets, and insurance, the bank benefits from a highly diversified revenue base.
RY stock currently trades at $239.83 with a market capitalization of $335 billion. Over the past year, it has surged by 47%, reflecting strong investor confidence. On top of that, it offers a 2.7% dividend yield, giving investors a reliable stream of quarterly income.
What’s driving this momentum in RY stock is its solid financial performance. In the most recent quarter (ended in January), Royal Bank reported record net income of $5.8 billion, marking a 13% year-over-year (YoY) increase. This growth was supported by strong contributions across its wealth management, personal banking, commercial banking, and capital markets segments.
Although its provision for credit losses saw a slight increase last quarter, it was more than offset by healthy loan growth and improved margins in its personal banking segment. More importantly, the bank’s balance sheet remains strong. It has a Common Equity Tier 1 (CET1) ratio of 13.7%, well above regulatory requirements, giving it a strong financial base to navigate uncertainties while continuing to invest in growth.
Royal Bank’s global presence and diversified operations position it well to capture opportunities across different markets. For long-term investors, it continues to be a dependable compounder with a track record of delivering consistent returns.
Another Canadian stock with improving fundamentals
Canadian Imperial Bank of Commerce (TSX: CM), or CIBC, has also been gaining momentum of late, backed by strong earnings growth and improving operational performance. Like its peers, CIBC operates across multiple segments, including personal banking, commercial banking, wealth management, and capital markets.
CIBC stock is currently priced at $149.84 per share, with a market cap of $138 billion. Over the last year, shares have jumped by an impressive 79%, making it one of the strongest performers among Canadian banks. It also offers a 2.9% dividend yield.
In the quarter ended in January 2026, CIBC’s revenue climbed by 15% YoY with the help of record contributions from all business segments. As a result, its reported net income surged by 43%, while adjusted net income climbed 23%. This growth came from a combination of higher revenues and a lower provision for credit losses, although partially offset by rising non-interest expenses.
Just like Royal Bank, CIBC’s capital position also remains solid, with a CET1 ratio of 13.4%. Beyond the numbers, the bank continues to invest in long-term growth with client-focused initiatives and digital improvements, all of which are likely to strengthen its competitive position. This combination of accelerating earnings, solid capital strength, and strategic focus makes CIBC an appealing stock to buy now and hold for the long term.
