Source: Wikipedia
  • Canadian banks have been reporting their Q4 2023 financial results this week and so far, it has been a mixed bag
  • For the three months to Oct, 31, the country’s biggest lender, Royal Bank of Canada (TSX:RY) announced that its revenue rose 3.7 per cent to C$13.03 billion, from C$12.57 billion a year before.
  • Toronto-Dominion Bank (TSX:TD) stated that its total revenue was C$13.12 billion, down from C$15.56 billion in the same quarter last year
  • Canadian Imperial Bank of Commerce (TSX:CM) reported total revenue of C$5.84 billion, up from C$5.38 billion in Q4 2022

Canadian banks have been reporting their Q4 2023 financial results this week and so far, it has been a mixed bag.

For the three months to Oct. 31, the country’s biggest lender, Royal Bank of Canada (TSX:RY) announced that its revenue rose 3.7 per cent to C$13.03 billion, from C$12.57 billion a year before.

The bank posted a rise in quarterly profit of C$4.13 billion (up from C$3.88 billion a year earlier) on strong performances from its corporate and investment banking units. RBC also raised its dividend to C$1.38 per share – up from C$1.35.

“Our strong balance sheet, prudent risk management and diversified business model continue to underpin our ability to deliver differentiated client experiences and advice across all our businesses, Dave McKay, president and chief executive officer of Royal Bank of Canada said in a news release, calling this a year defined by uncertainty. “As we enter 2024, RBC will work to provide the best client value as efficiently as possible, sharpening our focus to ensure our people and investments are aligned to build the bank of the future. Across RBC, our employees remain steadfast in their commitment to helping clients and communities adapt and thrive in a changing world.”

RBC stock opened just over 2 per cent higher at C$121.23 per share.

Toronto-Dominion Bank (TSX:TD) stated that its Q4 profit fell compared with a year ago, but raised its dividend.

TD reported total revenue of C$13.12 billion, down from C$15.56 billion in the same quarter last year. Provision for credit losses were C$878 million, up from last year’s C$617 million.

Canada’s second-largest lender stated it will now pay a quarterly dividend of C$1.02 per share, up from 96 cents.

“TD delivered strong revenue growth this quarter, reflecting positive underlying business momentum and the benefits of our diversified business model,” Bharat Masrani, TD Bank Group president and CEO, said in a media release. “In a complex operating environment, we continued to adapt, invest in new capabilities and take important steps to deliver efficiencies and drive growth across the bank.”

TD stock opened 1.6 per cent lower, trading at C$83.43 per share.

Canadian Imperial Bank of Commerce (TSX:CM) reported total revenue of C$5.84 billion, up from C$5.38 billion in Q4 2022. This amounts to a fiscal Q4 profit of C$1.09 billion.

“In a more fluid economic environment in 2023, our bank delivered a solid financial performance as we realized the benefits of our strategic investments and we continue to execute our client-focused strategy, highlighted by prudent expense management and continued growth in capital across key businesses,” Victor Dodig, CIBC’s president and chief executive officer, said in a news release. “We enter the new fiscal year with a robust balance sheet and strong credit quality, foundational to our progress as we enable and simplify our bank, focus on driving growth in the mass affluent and private wealth segments, build on our strength in digital, and leverage our connected culture to grow our commercial and capital markets business. Our CIBC team remains steadfast in its commitment to our purpose, helping make ambitions real as we serve our clients through the economic cycle and build strong, sustainable communities.”

CIBC was up more than 3 per cent at open, trading at C$55.01 per share.

Earlier this week, Bank of Nova Scotia’s (TSX:BNS) revenue came in at C$8.31 billion, up from last year’s C$7.63 billion. However, the bank admitted that its expenses had risen 22 per cent during the quarter to C$5.5 billion because of higher costs. BNS set aside bigger funds for potential loan defaults.

BNS stock was up 0.15  per cent in early trading, opening the market at C$59.80 per share.

Still to come, National Bank of Canada (TSX:NA) and Bank of Montreal (TSX:BMO) will report their quarterly performances later.

Overall, the performance does seem to improve upon the struggles Canada’s big banks endured during Q3 2023. How will the final two banks fare?

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