National Bank of Canada (NBC) analyst Matthieu Arseneau highlights that Canadian households saw net worth rise 5.8% in 2025, reaching a record high, as financial assets outpaced modest credit growth. The S&P/TSX delivered a 31.7% total return, aided by higher Gold prices. Despite weak real estate, robust financial markets and policy support underpinned Canadian wealth.

Financial assets drive household wealth gains

"Statistics Canada released data yesterday from the National Balance Sheet Accounts for the fourth quarter, providing fresh insight into the financial position of households. In 2025, household credit grew by 4.4%, broadly in line with the pace observed in 2024."

"On the asset side, growth reached 5.6% year-over-year, contributing to a 5.8% increase in Canadians’ net worth, which climbed to a new record high. This resilience came despite a 0.2% decline in real estate assets—their second weakest performance on record, after 2022, when the central bank aggressively tightened monetary policy. "

"The key story lies in financial assets, which posted another exceptional year. The Canadian equity market delivered one of the strongest performances globally (+31.7% total return for the S&P/TSX), supported in part by rising gold prices."

"... financial assets surged by 10.5% in 2025 (following a 10.4% gain in 2024), marking the strongest growth in 15 years."

"Looking back, the Canadian economy proved resilient in 2025 despite tariff uncertainty. In addition to interest rate cuts from the Bank of Canada and federal tax reductions—which help explain this resilience—the strong performance of financial markets should not be overlooked, as it boosted the wealth of some households."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)