Nation’s biggest banks earn $7.63 billion in Q3

Strength on the capital markets helped most of the country’s biggest banks report improved third-quarter results, but combined profits at the top five banks slipped to $7.63 billion.

TORONTO — Strength on the capital markets helped most of the country’s biggest banks report improved third-quarter results, but combined profits at the top five banks slipped to $7.63 billion.

A year ago, Canada’s big banks — Royal Bank, TD Bank, Scotiabank, CIBC (TSX:CM) and Bank of Montreal (TSX:BMO) — combined to earn $7.8 billion in the same period.

The decline was due to lower third-quarter earnings at Scotiabank (TSX:BNS) and TD Bank (TSX:TD).

Ian Nakamoto, director of research at MacDougall, MacDougall & MacTier, said weaker than expected performance by Scotiabank’s international banking operation was the biggest disappointment during the quarter.

Canada’s most international bank, which reported on Tuesday, earned $1.77 billion or $1.37 per share. That’s down from $2.05 billion or $1.69 per share in the same period last year, when earnings were boosted by the sale of Scotiabank’s headquarters.

TD Bank was the only other bank to report lower profits for the three months ended July 31 compared with a year ago. TD was hit by losses related to its insurance business due to claims associated with the recent severe flooding in Alberta and the Toronto area.

A loss of $243 million at TD Insurance affected the bank’s overall results as it reported a profit of $1.53 billion or $1.58 per diluted share, compared with $1.7 billion or $1.78 per share in the year-earlier period.

Overall, Nakamoto said earnings reports from the big banks were strong, despite ongoing concerns about a lagging housing market.

“The banking sector continues to be very healthy and robust, and fears over residential housing market in Canada should dissipate,” he said.

Nakamoto said a focus on wealth management helped Royal Bank of Canada (TSX:RY) come out ahead of the pack, beating analyst expectations by the widest margin.

Canada’s largest bank by assets earned a record profit of $2.3 billion or $1.52 per share in the three months ended July 31. That’s up three per cent from $2.24 billion, or $1.47 per share, in the same period a year earlier.

“Those (banks) that had more wealth management did better than the others,” said Nakamoto. “But they all have pretty strong wealth management platforms.”

Canadian Imperial Bank of Commerce (TSX:CM) earned $890 million or $2.16 per diluted share in the most recent period, up from $841 million or $2 a diluted share in the same period last year.

On Tuesday, the Bank of Montreal said it earned $1.14 billion or $1.68 cents per share for the quarter ended July 31, up from $970 million or $1.42 per share in the same year-earlier period.

Just Posted

Ottawa’s apathy on rural crime ‘outrageous,’ say central Alberta MPs

Recent parliamentary committee report on rural crime inadequate say MPs

The future’s exciting, but also a bit scary, for Red Deer’s high school grads

Concerns about job prospects, high cost of education expressed

Blind calf finds friendship in dog in central Alberta

Heaven and Sweetpea are best buddies. Heaven, a calf who was born… Continue reading

Walk raises awareness of victims of domestic violence

Central Alberta men and boys will walk a mile in high heels… Continue reading

Speeding a ‘constant concern’ for residents, says Red Deer RCMP

Red Deer RCMP ramps up its efforts to curb speeding in the… Continue reading

Dogs and drugs don’t mix: Red Deer business wants to leave downtown after 18 years

One business owner is done with downtown Red Deer after 18 years.… Continue reading

Cast your votes for the Best of Red Deer

Nominations for the Best of Red Deer Readers’ Choice Awards are officially… Continue reading

Seniors: The unheard melodies

The sights and sounds around us enable us to experience our world.… Continue reading

Police find urn with ashes along bank of Red Deer River

RCMP find urn with ashes along bank of Red Deer River Red… Continue reading

North Vancouver RCMP seek skier whose pole caused brain injury to B.C. teen

VANCOUVER — A North Vancouver family is joining with RCMP to urge… Continue reading

Canadian ‘Aladdin’ star eyes diverse career championing homegrown talent

TORONTO — Canadian “Aladdin” star Mena Massoud says his wild carpet ride… Continue reading

Supreme Court will tuck into UberEats case about drivers’ benefit rights

OTTAWA — The Supreme Court of Canada will help decide whether a… Continue reading

Speech from the throne: Read the entire text outlining UCP priorities

The following is the speech from the throne, read Wednesday in the… Continue reading

Canada’s Rebecca Marino drops second-round French Open qualifying match

PARIS — Canada’s Rebecca Marino fell just short in a second-round qualifying… Continue reading

Most Read