Canadian bank stocks are expected to benefit in the second half of 2025, as optimism grows around economic policy under Prime Minister Mark Carney and the potential for a US trade deal ahead of a key July 21 deadline. Analysts at Bank of America said improved GDP prospects, infrastructure stimulus, and easing interprovincial trade barriers should support the sector, with valuations remaining "in reasonable territory" ahead of a potential earnings-per-share (EPS) revision cycle. "Policy optimism, outlook for improving GDP growth should serve as tailwinds for Canadian bank stocks into 2H25," analysts wrote. Among individual names, Bank of America cited Canadian Imperial Bank of Commerce (CIBC) (TSX:CM), Toronto-Dominion Bank (TSX:TD) and National Bank of Canada (TSX:NA) as offering the best risk/reward profiles.