Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce joined the country’s other lenders in topping analysts’ estimates for third-quarter earnings, lifted by record profits in domestic consumer lending and wealth management.
Bloomberg News reports that Royal Bank, Canada’s largest lender by assets, reported today that net income for the period ended July 31 rose 2.9% to a record C$2.3 billion ($2.19 billion), or C$1.52 a share.
Toronto-Dominion, the second-biggest bank, said profit fell 10 percent to C$1.53 bn, or C$1.58 a share, after taking insurance losses tied to severe weather claims. Canadian Imperial, the fifth largest, said profit rose 5.8% to C$890m, or C$2.16 a share.
The banks benefited by getting a jump on preparing for a slower Canadian economy, cutting costs and raising fees ahead of time, Kinsey said. Canada’s economy is predicted by economists to grow 1.7% this year, the slowest pace since a contraction in 2009
Royal Bank benefited from a 51% increase in profit from its wealth-management unit as fund sales and improving stock markets lifted fee-based client assets.
Toronto-Dominion posted record profit in Canadian wealth management as well as its Canadian and U.S. retail-banking businesses, according to Johnston.
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