- Canadian banks have struggled in Q3 2023, as four of the “big six” reported missing profit estimates on higher loan provisions
- Canadian Imperial Bank of Commerce (TSX:CM) was the final bank to report its Q3 2023 results, registering a 12.5 per cent drop in profit
- This past week, banks have blamed the drop on needing to set more money aside to cover potentially bad loans, as well as lower trading activity and low market volatility
- Five out of the six were trading lower on Thursday, with the exception of BMO
Canadian banks have struggled in Q3 2023, as four of the “big six” reported missing profit estimates on higher loan provisions.
Canadian Imperial Bank of Commerce (TSX:CM) was the final bank to report its Q3 2023 results for the quarter ended July 31, 2023, and said it earned C$1.43 billion, down from $1.67 billion a year ago, a 12.5 per cent drop.
CIBC opened trading at $53.95 per share.
This past week, banks have blamed the drop on needing to set more money aside to cover potentially bad loans, as well as lower trading activity, and low market volatility.
National Bank of Canada (TSX:NA) dropped after it missed quarterly profit estimates, having reported a fiscal Q3 income of C$790 million, down 4 per cent from $826 million a year earlier. Compared to a year ago, personal lending grew 2 per cent and commercial lending grew 9 per cent.
National Bank opened trading at C$96.30 per share.
Toronto-Dominion Bank (TSX:TD) declared its adjusted net income was C$3.73 billion versus C$3.81 billion in Q3 2022, a decline of 2 per cent. TD also noted that Wholesale Banking yielded net income for the quarter of C$272 million, relatively flat compared to last year’s Q3. This does reflect record revenue and higher non-interest expenses, which include acquisition and integration costs, and reflects the first full quarter of revenues from TD Cowen, which closed in March.
TD stock opened trading at C$83.27 per share.
Bank of Nova Scotia’s (TSX:BNS) net income came in at C$2.23 billion, compared with C$2.61 billion in the year-ago quarter, a 14.5 per cent decline, which specifically impacted challenging market conditions in Chile and Colombia driven by higher inflation and retail portfolio growth.
BNS stock opened trading at C$64.50 per share.
Bank of Montreal (TSX:BMO) reported adjusted net income of C$2.04 billion for the quarter, compared to C$2.13 billion a year earlier, representing a 4.2 per cent loss.
“We’re accelerating efficiency initiatives and remain focused on dynamically positioning the bank for long-term growth and sustained profitability through disciplined expense and risk management,” BMO Financial Group’s CEO, Darryl White, said in a statement.
BMO stock opened at C$115.65 per share.
The only exception has been Royal Bank of Canada (TSX:RY), which beat analysts’ estimates and said its net income amounted to C$3.87 billion up from $3.58 billion, an 8.1 per cent increase. The number of full-time employees was down 1 per cent from last quarter, and the bank’s management warned that it expects to further reduce staff by approximately 1 per cent to 2 per cent next quarter.
RBC stock opened at C$122.88 per share.
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