11:29 AM EDT, 09/11/2025 (MT Newswires) -- Canadian household balance sheets stayed resilient in Q2 despite trade-policy uncertainty and a more volatile stock market, with net worth posting a modest gain, RBC said after Thursday's data release.

The debt-service ratio remained elevated and ticked slightly higher, while net worth hovered near record highs, supported by stronger equity markets, the bank noted.

Statistics Canada said gains were uneven, with most of the increase coming from financial assets as equities rebounded sharply after a weak Q1. The top 20% of households hold almost 70% of financial assets.

Housing weighed on wealth as prices slipped and debt levels rose, though RBC expects market activity to recover gradually through late 2025. Tariff uncertainties continued to add strain by threatening higher import prices and market volatility, although worst-case scenarios have not developed

Business investment and softer labor market conditions could further limit personal income and net worth growth, the bank said.

Household net worth rose 1.5% in Q2 to $17.9 trillion, driven by a 7.8% gain in the S&P/TSX Composite Index after a 0.8% increase in Q1. Financial asset values climbed accordingly.

Credit market debt grew 1% to $3.1 trillion, with mortgage borrowing still rising at a slower pace, lifting the debt-to-disposable-income ratio to 174.9% from 173.7% as debt growth continued to outpace income gains of 0.3%.

The debt-service ratio was little changed at 14.4%, below the 15.1% peak reached in 2023 and steady for a third straight quarter. RBC expects the measure to edge higher as low-rate mortgages reset at higher rates, but said the increases should remain manageable if unemployment does not rise significantly.