Royal Bank of Canada, Canadian Imperial Bank of Commerce and Toronto-Dominion Bank reported first-quarter profits that topped analysts? estimates on record earnings from personal and commercial lending.
Royal Bank, Canada?s largest lender by assets, said net income for the period ended Jan. 31 rose 12% to $2.07-billion, or $1.36 a share. CIBC, the fifth-biggest bank, said profit fell 4.4% to $798-million, while Toronto-Dominion, the No. 2 bank, said profit climbed 21% to $1.79-billion, or $1.86 a share.
Canada?s banking sector protections under attack in EU trade talks, document shows
Canada is struggling to maintain the traditional stringent standards it imposes to ensure financial stability and protect financial services in Canada from foreign control.
Continue reading . . .
The three Toronto-based lenders posted record profits from consumer and business lending businesses, defying an expected slowdown after household debt rose to a record. The banks benefited from rising demand for corporate lending along with personal financial services and credit cards.
A Canadian residential mortgage lending slowdown is ?pretty much to be expected when you consider that consumers are starting to deleverage,? Toronto-Dominion Chief Financial Officer Colleen Johnston said today in a telephone interview. ?An area of huge growth for us, though, has been on the business banking side. That?s an area where we?ve really taken a lot of market share.?
Royal Bank said profit at its personal and business banking unit, which includes Caribbean banking, rose 11% to $1.12-billion, while CIBC?s retail and business banking business had profit of $611-million, a 7.8% increase. Toronto-Dominion said adjusted earnings from consumer and commercial banking rose 11% to $944-million.
?The results that have come out of the domestic businesses have just been much better than my expectations,? said Tom Lewandowski, a financial services analyst with Edward Jones in St. Louis.
?I?ve held the contention that as you see slower growth (the banks are) going to have to reposition your balance sheet into lower yield securities. If business growth continues to keep up with what we?ve seen here in the first quarter, that ? may be less of a concern.?
?Solid Quarter?
?CIBC reported a solid quarter, with surprisingly stronger retail banking earnings than anticipated,? John Aiken, an analyst at Barclays Plc, said today in a note.
Royal Bank said it set aside $349-million for bad loans, up from $267-million in the year-earlier period. Provisions in Canadian banking fell to $213-million, from $243-million a year ago. Canadian Imperial set aside $265-million for bad loans, down from $338-million a year ago.
Royal Bank and Toronto-Dominion raised their dividends, while CIBC?s was unchanged.
Royal Bank?s profit excluding some items was $1.38 a share, beating the $1.32 a share average estimate of 16 analysts surveyed by Bloomberg News. Revenue rose 4.4% to $7.91-billion from $7.57-billion.
RBC Capital Markets had profit of $464-million, up from $371-million a year ago, on higher fees from advising on North American takeovers and an increase in U.S. lending and loan syndication. Wealth management earnings rose 23% to a record $233-million, while insurance fell 14% to $164-million, the bank said.
Credit Cards
Royal Bank?s revenue from Canadian personal financial services grew 6.9% to $1.68-billion in the quarter from a year ago, while business financial services rose 2.4% to $738-million. Credit cards and payments rose 5.3% to $620-million. Revenue from Caribbean and U.S. banking was almost unchanged at $204-million.
CIBC?s earnings were eroded by a settlement with the Lehman estate to end a two-year-old legal dispute over collateralized debt obligation deals. The lender said Dec. 31 that the after- tax cost of the settlement is $110-million. Excluding the cost and other items, CIBC said it earned $2.15 a share, beating the $2.09 a share average estimate of 16 analysts surveyed by Bloomberg. Revenue at Canada?s fifth-biggest bank rose 0.8% to $3.18-billion.
CIBC?s wealth management profit was $90-million, down 10%, while the lender?s investment-banking business had profit of $91-million, down 32% from a year earlier.
CIBC also said today in its statement that its Aeroplan credit-card partnership with Aimia Canada Inc. will expire Dec. 31 unless both companies agree to extend.
?CIBC has engaged in periodic extension discussions with Aimia but is also exploring alternatives to extending the Aeroplan agreement,? the bank said.
Bloomberg.com, with a file from Canadian Press
Source: http://business.financialpost.com/2013/02/28/rbc-td-cibc-earnings/
London 2012 Soccer dwight howard Olympics closing ceremony PGA Championship 2012 John Witherspoon george michael usain bolt
কোন মন্তব্য নেই:
একটি মন্তব্য পোস্ট করুন