The earnings reports from Canadian banks all look good. The strong revenue and profits affirm the strength for financials.
Toronto-Dominion Bank (TSX:TD) reported Q4 non-GAAP EPS of $1.63. Revenue rose a by decent 9.2% Y/Y to CAD $10.12 billion. This is impressive, given the Canadian housing market is not growing as well as in previous years.
TD bucked the trend by reporting market share gains in real-estate secured lending. Still, the bank raised its Q4 provisions for credit losses to $670 million, up from $561M last quarter and from $578 million last year.
Royal Bank of Canada (TSX:RY) earned $2.20 a share on a revenue increase of 1.4% Y/Y, to $10.67 billion. P&C banking, wealth management, insurance, and capital markets all did well. The bank benefited from better deposit spreads, owed to higher rates in Canada. Royal said that "PCL on impaired loans increased to $15 million as we took provisions across several accounts this quarter.”
Bank of Nova Scotia (TSX:BNS) reported Q3 EPS of $1.77 as revenue rose a solid 9.4% to $7.45 billion. EPS is up ~8% Y/Y. Looking ahead to next year, the bank forecasts earnings momentum from its Pacific Alliance Countries. A provision for credit losses of CAD $590 million, up from $536 million last year is notable.
Bank of Montreal (TSX:BMO) reports on December 4.
