Canada’s Big Banks Have Positive Outlook for the Future
- Thursday, September 17, 2009, 7:58
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Canadian Banks, particularly the larger ones were basking in their strong third quarter performance which came about despite the global financial crisis in which score from other financial institutions around the world crashed.
In Toronto, we see many senior executives declaring the gains banks made as they look forward to some of the opportunities brought about by the global meltdown.
Royal Banks CEO, Gordon Nixon has noted that there are significant opportunities for acquisitions in the next few years in the midst of further restructuring in the financial sector; he has noted that RBC will be proceeding with caution.
Scotiabank CEO Richard Waugh commented similarly, saying that Jamaica, Mexico and Chile have offered up chances for expansion, whereas Bank of Montreal (BMO) CEO Bill Downe notes he sees a possibility in buying troubled consumer banks in the U.S., particularly in the Midwest.
A Scotia Capital research report shows that Canadian banks have reported great third quarter earnings, and it is the third straight quarter of outperforming expectations.
For example, last months, Royal Bank of Canada (RBC), the country’s largest bank, reported a quarterly profit of $1.56 billion.
Altogether, the five biggest banks, RBC, Canadian Imperial Bank of Commerce (CIBC), Scotiabank, BMO and Toronto-Dominion Bank (TD) earned a combined total of $4.4 billion in the third quarter profits for the three months ending July 31st. This was $500 million higher than the $3.9 billion earned a year ago.
This was highly above analyst expectations, and it showed that Canadian banks, despite higher loan losses and problems in their businesses, they have gone through the recession better than most.
If you compare to the U.S. you will see that the financial crisis has had 81 banks fail in 2009 alone. The Canadian banking system is establishing itself as one of the safest in the world, and the last quarter only strengthens this.
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Sensei has written 1086 stories on this site.
My favorite weapon of choice is the samurai sword. I use it to cut my chicken during dinner, cut my hair and periodically carve my name into stone when I am bored. I love meditating on top of a 15ft high pole and eating those sushi’s with smoked salmon on top.
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