Canada’s biggest banks are outperforming their peers as a whole, according to new data from the Canadian Bankers Association.
In the latest quarterly data, Canadian banks posted quarterly profits that rose 7.4 per cent to C$11.5 billion ($9.1 billion) from the previous quarter.
The Bank of Montreal posted a 12 per cent rise in profits to C£8.2 billion, and the Bank of British Columbia, which was the only Canadian bank to report a loss in the fourth quarter, reported a 14 per cent profit increase to CCH$1.3 billion.
While the Bank is not among the banks that have seen their profits grow, the bank’s quarterly results underscore the importance of financial stability to the broader economy, said B.C. economist David Madani.
“We expect banks to continue to do well, but they’re not going to be able to do it alone,” Madani said.
Canada’s five biggest banks posted profits of CCH $3.2 trillion in the year to March. “
The Bank of Canada has been saying that the economy has been stable over the last year, and that’s true, but the banking system has to be healthy to make sure that the system continues to function well.”
Canada’s five biggest banks posted profits of CCH $3.2 trillion in the year to March.
Bank of Nova Scotia reported a CCH of $3 billion in profits, while the Canadian Imperial Bank of Commerce posted CCH C$3.5 trillion in profits.
BMO Capital Markets reported CCH earnings of C$2.9 trillion.
The bank also posted an increase in dividend payments of CCT $5.9 billion, which were a record for a Canadian bank.
Canada’s four largest banks recorded CCH profit of CCA$1 trillion in 2016, while Bank of America posted a CCAIC $1.9 Trillion profit.
The Canadian Banker’s Association, which represents the largest banks in Canada, noted that some of the banks’ profits came from acquisitions of assets such as commercial paper.
However, the group said the banks continue to grow, as they continue to invest in their businesses.
“With all the credit markets we are seeing a lot more of the growth come from outside of Canada,” said CBA President and CEO Richard Wren.
“Our industry continues to be one of the most resilient in the world and that has helped to sustain growth.”
For more: http://www.cbc.ca/news/canada/banking-economy-surges-for-fourth-quarter-profits-7.5-per-cent-at-cbc-bank-of-montreal-1.1728962