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

  • Record household debt to add pressure to credit cards in next downturn: Moodys

    Economic CTV News
    TORONTO -- Unprecedented household debt levels will give Canadians a rude awakening on their unpaid credit card bills if another economic downturn materializes in the coming years, according to a new report issued Wednesday. Moody's Investors Service it will be closely watching Alberta and Saskatchewan for signs of increased delinquencies on consumer debt portfolios. Source
  • Wealthsimple launches Halal investing portfolio for observant Muslims

    Economic CBC News
    Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • Royal Bank hikes dividend after posting $2.8B quarterly profit

    Economic CBC News
    Royal Bank of Canada is reporting nearly $2.8 billion of net income for its fiscal third quarter and an unexpectedly large increase to its quarterly dividend. RBC's net income was down three per cent from last year when its bottom line was boosted by the sale of an insurance business, which also reduced the bank's overall revenue. Source
  • Royal Bank reports $2.8-billion profit for Q3, announces dividend increase

    Economic CTV News
    TORONTO -- Royal Bank of Canada (TSX:RY) is reporting nearly $2.8 billion of net income for its fiscal third quarter and an unexpected increase to its quarterly dividend. RBC's net income was down three per cent from last year when its bottom line was boosted by the sale of an insurance business, which also reduced the bank's overall revenue. Source
  • Wealthsimple launches investment portfolio for observant Muslims

    Economic CTV News
    TORONTO -- Robo-adviser Wealthsimple has launched a new investment portfolio for observant Muslims, a move the company says builds off its success targeting smaller, underserviced groups of investors. The Toronto-based wealth management firm says its Halal investing portfolio is designed for those adhering to Islamic laws that prohibit investing in certain companies and financial products. Source
  • CPP reform to help lift plan's assets above $15B by 2090: analysis

    Economic CTV News
    OTTAWA - The upcoming enrichment of the Canada Pension Plan will help fuel a 48-fold boost to the public fund's assets over the long haul - to more than $15.8 trillion by 2090, according to federal calculations. Source
  • CPP reform to help lift plan's assets above $15 trillion by 2090: analysis

    Economic CTV News
    OTTAWA - The upcoming enrichment of the Canada Pension Plan will help fuel a 48-fold boost to the public fund's assets over the long haul - to more than $15.8 trillion by 2090, according to federal calculations. Source
  • Asian markets rise after Wall Street's sharp gains

    Economic CTV News
    SEOUL, Korea, Republic Of - Most Asian markets staged modest gains on Wednesday after overnight gains on Wall Street as geopolitical risks and turmoil at the White House that have dented investor sentiment in the past few weeks abated while investors eyed the annual gathering of central bankers. Source
  • B.C. seeks intervener status in court cases against Trans Mountain pipeline

    Economic CTV News
    VANCOUVER -- The British Columbia government has applied for intervener status in court challenges against the Trans Mountain pipeline expansion. The NDP government announced earlier this month that it would be joining the legal fight against Ottawa's approval of the $7.4-billion project and hired former judge Thomas Berger to provide legal advice. Source
  • Rising old age security spending dampened by CPP increases: report

    Economic CBC News
    A mandatory review of the country's largest seniors benefit program is predicting all-time highs in spending over the coming years with waves of baby boomer retirements — spending levels that could have been even higher if not for changes to the public pension program. Source