Feb 29 (Reuters) – Canada’s TD Bank (TD.TO), opens new tab and Canadian Imperial Bank of Commerce (CM.TO), opens new tab on Thursday beat analysts’ estimates for quarterly profit, driven by strong loan volumes and growth in deposits at home.
The results mirror similar better than expected first-quarter earnings reported earlier this week by rivals Royal Bank of Canada (RY.TO), opens new tab, Bank of Nova Scotia BNS.TO and National Bank of Canada (NA.TO), opens new tab.
Improved loan volumes and margins in the first quarter fuelled a 10% jump in earnings at CIBC’s Canadian banking unit, and a 3% growth in profit at TD Bank’s Canadian personal and commercial unit.
Still, TD and CIBC, like other banks, built up their reserves to stay protected during uncertain times as elevated interest rates have left Canadians with shrunken wallets and struggling to repay their mortgages and credit card bills.
CIBC built C$585 million ($432 million) in provisions, C$290 million higher than last year, while TD Bank’s provision for credit losses rose to C$1 billion from C$690 million a year earlier.
Excluding one-time charges, CIBC reported profit per share of C$1.81 while TD earned C$2 per share, trouncing analysts’ average estimates of C$1.66 and C$1.89 respectively, according to LSEG data.
CIBC’s shares rose 1% while TD’s shares were up marginally.
“There is very little to critique in the results,” RBC Capital Markets analyst Darko Mihelic said on CIBC’s results, but noted TD’s U.S. retail banking and capital markets segments were weaker than expected.
Post a comment
Related Posts
August 27, 2024
China’s PDD suffers $55 bln market cap wipeout after flagging an uncertain market
China’s PDD Holdings (PDD.O), opens new tab missed market estimates for quarterly revenue on Monday, and downbeat…
August 27, 2024
JPMorgan Chase is sued over low rates on cash sweeps
JPMorgan Chase (JPM.N), opens new tab has been accused in a new lawsuit of sweeping customers’ idle…
August 23, 2024
HSBC to double UK wealth business as banks target ‘mass affluent’
HSBC aims to double the assets under management (AUM) in its British wealth business to…
August 23, 2024
Investors rush to money market funds before Fed rate cut, BofA says
Investors poured $37 billion into cash-like money market funds (MMFs) in the week to Wednesday,…
