TD, CIBC Get a Lift as Housing Buoys Canadian Banking Units
- Lower loan-loss provisions also bolster fourth-quarter results
- Trading boom lifts earnings in banks’ capital-markets units
Signage is displayed outside a Toronto-Dominion (TD) Canada Trust bank branch in Vancouver, British Columbia, Canada, on Thursday, Aug. 30, 2018. The bank is getting a lift from its massive retail-banking business.
Photographer: Darryl Dyck/BloombergCanada’s resilient housing market is proving a boon for Toronto-Dominion Bank and Canadian Imperial Bank of Commerce, helping their domestic banking franchises return to earnings growth.
Profit in Toronto-Dominion’s Canadian retail unit rose 3.3% to C$1.8 billion ($1.4 billion) in the fiscal fourth quarter, and CIBC’s personal and commercial business in the country increased earnings 5.5% to C$634 million. Both banks benefited from rising residential mortgage balances as well as declining provisions for credit losses as fears of the coronavirus pandemic leading to a deeper financial crisis ebb.