Three banking giants reveal Q4 results

RBC, CIBC, and TD revealed how they fared in the fourth quarter

Three banking giants reveal Q4 results

Royal Bank of Canada (RBC) and Canadian Imperial Bank of Commerce (CIBC) saw profits rise in 2023’s fourth quarter while TD Bank’s reported net income fell as earnings season continued among Canada’s banking giants.

RBC said in a statement on Thursday morning (November 30) that it had recorded net income of $4.1 billion in Q4, an increase of 6% from the same time last year, with diluted earnings per share (EPS) of $2.90 also rising by the same percentage.

CIBC’s reported net income, meanwhile, came in at just over $1.48 billion for the quarter compared with $1.185 billion in Q4 2022 as its EPS rose from $1.26 to $1.53 on a year-over-year basis.

At TD, adjusted net income dropped from $4.1 billion to just over $3.5 billion as adjusted EPS slipped to $1.83 from $2.18 last year.

That decrease was mainly due to higher funds set aside to cover credit losses, TD said, with CIBC and RBC also bulking up their loan loss provisions amid continuing uncertainty about the future of the economy.

RBC set aside $720 million for credit losses, up from $381 million at the same time last year, while CIBC saw loan loss provisions rise to $541 million compared with $436 million in Q4 2022. TD put aside $878 million for recovery of badly performing loans, a year-over-year increase from $617 million.

Strong results on the corporate and investment banking side helped bolster RBC’s overall performance, with the bank reporting a 36% increase in capital markets net income for Q4, while CIBC also saw robust growth in capital markets profits.

With Scotiabank having revealed its fourth-quarter financial results yesterday, Bank of Montreal (BMO) and National Bank are set to close out earnings season for Canada’s top banks with statements tomorrow morning (December 1).

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