TD, CIBC report higher first-quarter profits

TORONTO -- CIBC and TD Bank both saw their first-quarter earnings grow despite the fact that oilpatch woes, volatile stock markets and the sluggish economy have created a challenging environment for Canadian banks.

See Full Article

TD (TSX:TD) reported net income of $2.22 billion, up roughly eight per cent from a year ago when it reported $2.06 billion in quarterly profits.

Meanwhile, CIBC (TSX:CM) saw its quarterly profit climb six per cent to $982 million, from $923 million previously.

"We achieved very strong results this quarter during a period of greater market uncertainty and volatility -- conditions that may persist for the near to medium term, particularly as weak energy prices continue to be a drag on economic growth both in our own country here in Canada and globally," CIBC's chief executive Victor Dodig said during a conference call Thursday to discuss the bank's results.

"But whatever market conditions we encounter, the collective focus of our CIBC team members will remain on the following: to sustain and build on our current financial strength, to simplify and transform the way banking is done for our clients, and to deliver innovative and sustainable growth for our shareholders."

Scotiabank analyst Sumit Malhotra said the banks' efforts to keep a firm grip on their expenses allowed them to grow their earnings in spite of all the headwinds.

"In the environment we're in, expense control for all of these companies is a bigger part of the equation than it would be in a more robust operating environment," Malhotra said.

"You're seeing some of the fruits of the restructuring efforts start to make their way into the operating performance of the banks."

CIBC and TD have both taken restructuring charges in recent quarters as they looked to improve efficiency through a variety of measures, including revamping certain processes, closing branches and trimming their headcounts.

In the first quarter, CIBC had 43,609 full-time staff -- 592 fewer than it had during the previous quarter.

TD, meanwhile, had 79,927 full-time employees in the first quarter, down 627 from the prior quarter. Compared to a year ago, the bank has slimmed down its ranks by 2,256 workers.



Advertisements

Latest Economic News

  • Asian stocks fall amid Trump trade policy fears

    Economic CTV News
    TOKYO - Asian markets slipped in muted trading Friday amid worries over U.S. trade policies that may affect regional economies. A stronger yen weighed on Japan's exporters. KEEPING SCORE: Japan's benchmark Nikkei 225 edged 0.2 per cent lower to 19,339.56, while South Korea's Kospi fell 0.7 per cent to 2,093.33. Source
  • Coke says it supports World Health Organization's sugar guidelines

    Economic CTV News
    NEW YORK -- Coke says it supports the World Health Organization's guidelines for limiting added sugar, as the company works on repairing its image in public health circles and reshaping its business. Incoming CEO James Quincey also said the company has "outgrown" its namesake cola and is focusing on becoming a "total beverage company. Source
  • Alberta energy regulator releases rules on heavy oil odours

    Economic CTV News
    CALGARY -- Alberta's energy regulator has set new rules to deal with long-standing complaints about powerful, gassy smells from heavy oil operations in the Peace River region. The rules, released late Thursday, grew out of a 2014 inquiry held by the regulator after years of complaints from people in tiny communities neighbouring the operations. Source
  • India rejects extension on pulse imports in blow to Canada's largest market

    Economic CTV News
    CALGARY -- India has rejected a long-standing exemption on pest treatment for peas and lentils in a blow to Canada's top export market for the crops. Federal Agriculture Minister spokesman Guy Gallant confirmed the Indian government has not granted another six-month exemption that would have crops fumigated on arrival, rather than before export, as has been allowed for more than a decade. Source
  • Toronto clothing brand accused of 'exploiting the homeless'

    Economic CTV News
    A Toronto clothing line facing allegations of “glorifying poverty” and “exploiting the homeless” for selling items that are branded with the words "homeless" and "change please" says it’s actually trying to help people in need. Source
  • Canada Revenue Agency expects to track down $400M in tax crackdown

    Economic CTV News
    OTTAWA -- Canadian tax authorities expect to track down $400 million this year they say are owed as part of a campaign to crack down on tax evasion by big international companies and wealthy individuals, particularly those using offshore tax havens, a top official says. Source
  • Numbers show Alberta economy improving, but no change to $10.8B deficit

    Economic CTV News
    EDMONTON -- Alberta's economy is on the road to recovery and more money is coming in, but there's no change to the government's projected $10.8-billion deficit this year. Finance Minister Joe Ceci says Alberta is going to make $1.5 billion more than expected in the current budget year which ends March 31. Source
  • Average weekly earnings increasing, but not for retail, food and accommodation workers

    Economic CBC News
    The average weekly paycheque for non-farm workers was $961 in December, Statistics Canada says, a figure that has grown by 1.2 per cent last year but belies wide differences between types of workers. Workers in information and cultural industries saw their pay packets increase the most, on average, up by more than 10 per cent last year to $1,350.48 a week. Source
  • Canadians projected to live longer, but can they afford it?

    Economic CBC News
    A new study that projects Canadians born in 2030 will live even longer than the previous generation has prompted concerns over saving enough to enjoy those bonus years. U.K. researchers' study of 35 industrialized countries was published in The Lancet on Tuesday. Source
  • Estimated 8,000 millionaires immigrated to Canada last year, report says

    Economic CBC News
    Canada attracted an estimated 8,000 millionaires last year, trailing only Australia and the United States on the list of top destinations, according to a recent report from New World Wealth. Australia drew 11,000 millionaires, while the U.S. Source