Toronto Dominion and CIBC sees higher profit on capital markets activity

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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.

To access the complete Bloomberg News article hit the link below:

Toronto-Dominion, CIBC Profits Rise on Capital Markets Gains

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