With four of the five major Canadian banks now reporting third quarter earnings, the scorecard is in and it’s in the billions.
With Scotia Bank yet to report, the numbers for the four tell the tale of how resilient and fast to adapt to a changing environment the Canadian banks really are.
And in most cases, it’s much, much better than their US and European counterparts.
As reported, RBC led the group with quarterly earnings of $2.7 billion followed closely by TD at $2.42 billion. Next was CIBC at $1.44 billion and BMO with $1.25 Billion.
Having to raise their capital reserves, adapt to the new digital age of banking, and weather exposure to potential loan losses in the energy sector have kept Canadian banking on its toes to say the least.
And adapt and change they did, and in doing so have paid off their shareholders royally.
If Canadian investors don’t hold Canadian banks individually in their investment accounts, then be sure that your pension plan or Canadian mutual fund(s) have a good slug of them in their portfolios on your behalf.
Unlike any other sector save mining and minerals, Canadian financials have outperformed all other major sub-indices on the TSX, and there is no reason at this point to think that this trend won’t continue.