Canada’s Biggest Banks Earn $5.09B in First Quarter

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Author: keith.ca

Canada’s five biggest banks saw their profits rise by almost two-thirds in the first quarter of 2010, compared to the same period last year when the recession had taken root and any earnings were taken away.

The banks have earned a combined total of $5.09 billion in the three months that ended on January 31st; compared to $2.97 billion in 2009, helped b lower loan losses and a increase in mortgages.

Scotiabank reported last, and it posted a 17% rise in profit, beating analyst estimates. Many of the other banks also came out with higher profits than Bay Street expected; this includes Bank of Montreal (BMO), Toronto-Dominion Bank (TD), and Canadian Imperial Bank of Commerce (CIBC).

Royal Bank of Canada (RBC) was the sole exception as it missed expectations, despite posting the largest profit of %1.5 billion.

These results gave another reason for optimism in a banking industry than those in most other countries as it fared much better. Canada’s banking sector is considered one of the least affected by the 2008 – 2009 credit crisis.

Craig Fehr, a financial service analyst noted that the earnings provided early sign that loans are beginning to stabilize.

With this trend we can only anticipate to see last year’s second quarter to be surpassed just as much as the first.

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