Toronto-Dominion Bank and Canadian Imperial Bank of Commerce reported higher fiscal fourth-quarter profit on gains in capital markets, helping counter slower growth in their domestic retail businesses.
Bloomberg News reports that Toronto-Dominion’s net income for the period ended October 31 rose 25% to $1.7bn, or $0.90 a share, from a year earlier, while CIBC’s increased 20% to $699.3m, or $1.74. CIBC joined Bank of Nova Scotia, which reported results Tuesday, in beating analysts’ estimates, while Toronto-Dominion matched expectations.
“CIBC beat because of capital markets, good expense discipline and outsized residential mortgage growth, and the reason TD didn’t beat was because of high expenses,” Steve Belisle, a fund manager with Manulife Asset Management, said in an interview. “That doesn’t make me want to jump on CIBC’s shares this morning, nor TD’s."
CIBC’s results were fueled by a 52 percent jump in capital markets earnings to C$276 million, lifted by a surge in trading revenue.
Earnings from the TD's wholesale business also have increased under the firm’s strategy of expanding corporate lending and investment banking in the U.S.
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