Banks Continue to Thrive

CBJ — Royal Bank of Canada, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce are all topping profit estimates even as the energy industry downturn takes a toll on their loan books.

Gross impaired loans to the oil and gas sector surged at all three lenders – but at least one of them is taking matters into its own hands to help offset that weakness. RBC says “fee-based revenue growth” helped drive record earnings in its core banking division.

RBC reported a 7% increase in second-quarter profit from the same quarter a year earlier, which it said reflected strength across its businesses.

Canada’s biggest bank by market value said net income excluding one-off items for the second quarter to April 30 was $2.6-billion, or $1.66 per share, compared with $2.4-billion, or $1.61 per share, a year earlier.

CIBC reported a 3.5% rise in quarterly profit, helped by growth in its retail and business banking division.

The bank’s net income rose to $926-million, or $2.35 per share, in the second quarter ended April 30 from $895-million, or $2.25 per share, a year earlier.

TD, Canada’s second-biggest lender, reported a 10.4% rise in quarterly profit on Thursday, helped by growth in its retail banking business.

The Toronto-based bank’s net income rose to $2.05-billion, or $1.07 per share, in the second quarter ended April 30 from $1.86-billion, or 97 cents per share, a year earlier.

@CanBizJournal

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