Latest Canadian Bank Earnings Reports

Canada’s six largest banks released quarterly results this week. Below are the key takeaways on earnings, revenue, provisions for loan losses and dividend changes for the three months ended Oct. 31, 2024.

BMO posts earnings shortfall as credit provisions climb

BMO Financial Group reported a sizable miss on adjusted earnings per share as the bank sharply increased provisions for potential loan losses. The fourth-quarter headline profit was $2.30 billion, supported by a one-time pre-tax reversal tied to a U.S. legal judgment; after excluding that gain, adjusted net income fell to $1.54 billion from $2.24 billion a year earlier.

The bank’s provisions for credit losses rose to $1.52 billion from $446 million a year earlier, including $1.11 billion in the more severe impaired category. That increase weighed on adjusted diluted EPS of $1.90, down from $2.93 the prior year and below the consensus estimate. Revenue rose to $8.96 billion from $8.32 billion a year ago.

BMO said it expects provisions to moderate through 2025 as conditions improve and raised its quarterly dividend slightly to $1.59 per share from $1.55. Results across businesses were mixed: Canadian personal and commercial banking profits declined, U.S. personal and commercial banking results were lower, wealth and capital markets both posted declines, while corporate services benefited from the reversal of an older provision.

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CIBC reports higher Q4 profit and raises its dividend

Canadian Imperial Bank of Commerce delivered a stronger fourth quarter, reporting a profit of $1.88 billion versus $1.49 billion a year earlier, and announced a quarterly dividend increase to $0.97 from $0.90. Adjusted diluted EPS came in at $1.91, above analysts’ expectations, and revenue rose to $6.62 billion from $5.85 billion.

CIBC’s provision for credit losses declined to $419 million from $541 million a year earlier. The bank saw gains across Canadian personal and business banking, commercial banking and wealth, and U.S. commercial banking and wealth management—each reporting better results year over year. The capital markets and direct financial services businesses also improved, while the corporate segment narrowed its losses compared with the prior year.

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National Bank reports growth, raises dividend

National Bank of Canada posted higher fourth-quarter results and announced a modest dividend increase to $1.14 per share from $1.10. Net income was $955 million, or $2.66 per diluted share, up from $751 million a year ago. Revenue climbed to $2.94 billion from $2.56 billion.

Provision for credit losses rose to $162 million from $115 million, but adjusted EPS of $2.58 slightly beat consensus. The bank reported growth across personal and commercial banking, wealth management and financial markets, while its U.S. specialty finance and international operations also improved. National Bank emphasized disciplined execution, organic growth and resilient credit performance as it looks to navigate a complex 2025 environment.

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Royal Bank posts strong revenue, raises quarterly dividend

Royal Bank of Canada reported a fourth-quarter profit of $4.22 billion, up from $3.94 billion a year earlier, and raised its quarterly dividend to $1.48 from $1.42. Revenue rose to $15.07 billion from $12.69 billion, helped in part by the acquisition of HSBC Bank Canada.

Adjusted EPS was $3.07, above estimates, while provisions for credit losses increased modestly. RBC highlighted diversified revenue growth across personal banking, commercial banking, wealth management and insurance, with capital markets broadly stable. The corporate segment recorded a loss driven by transaction and integration costs related to the HSBC Canada deal.

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Scotiabank: profits up but pressure on loans remains

Scotiabank reported a fourth-quarter profit of $1.69 billion versus $1.35 billion a year earlier, though results missed some expectations. The bank said loan growth remains pressured by a softer domestic economy and flagged political uncertainty in markets where it operates. Revenue rose to $8.53 billion from $8.27 billion.

Scotiabank’s total provisions eased to $1.03 billion from $1.26 billion a year earlier as some loans were reclassified, but impaired provisions—where recoveries are least certain—rose, particularly tied to roughly 250 customers in higher-cost housing markets. The bank also recorded a write-down on an investment in a Chinese bank and a small severance charge. On an adjusted basis, diluted EPS was $1.57, slightly below analyst consensus.

Management said it sees early signs of improvement as interest-rate easing supports housing and consumer confidence, but it cautioned that the operating environment remains uneven across business lines and geographies.

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TD: adjusted earnings fall as bank deals with AML fallout

TD Bank Group’s reported profit rose to $3.64 billion, bolstered by the sale of Charles Schwab shares, but adjusted earnings declined amid continuing remediation of anti-money laundering (AML) deficiencies. The bank recorded a $1.02 billion gain from the Schwab share sales and agreed to fines tied to past AML shortcomings. Adjusted diluted EPS was $1.72, down from $1.82 a year earlier and below consensus.

Revenue increased to $15.51 billion from $13.18 billion year over year, while provisions for credit losses rose to $1.11 billion. TD’s management said AML remediation remains the top priority and has temporarily suspended medium-term financial targets while the bank completes its remediation work and updates its strategy.

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