Canadian Banks are reporting their earnings for the quarter ended April 30, 2015. (Note that all numbers in this article are in Canadian dollars.)
Bank of Montreal (NYSE/BMO)
Net income for the quarter is at $1.0 billion, translating to earnings per share (EPS) of $1.49—a seven percent decrease year-over year. Adjusted net income, which excludes items such as a $106 million restructuring charge, has increased to $1.15 billion. This implies an adjusted EPS of $1.71, a five percent increase year-over-year. (Source: BMO Financial Group, May 27, 2015.)
The results were driven by strong performance in capital-markets, wealth management, and personal and commercial banking in the U.S. BMO is also raising its quarterly dividend by two cents to $0.82.
Canadian Imperial Bank of Commerce (NYSE/CM)
The Canadian Imperial Bank of Commerce (CIBC) reported a net income of $911 million, or earnings of $2.25 per share. This is almost triple the $306 million or $0.73 EPS for the same quarter last year. Last year, the bank took $543 million in impairment charges in its Caribbean banking subsidiary. (Source: CIBC, May 28, 2015.)
Performance of retail and business banking, wealth management, and wholesale banking all improved from the year-ago period. CIBC also increased its dividend by three cents to $1.09.
Royal Bank of Canada (NYSE/RY)
The Royal Bank of Canada (RBC) reported net income of $2.5 billion for the quarter, a $301 million, or 14% increase year-over year. EPS increased by the same percentage to $1.68. (Source: Royal Bank of Canada, May 28, 2015.)
Among the bank’s departments, capital markets saw the biggest jump in income. Net income in capital markets increased $118 million or 23% to $625 million. On the other hand, RBC’s insurance arm struggled. Net income is down by $31.0 million or 20% year-over-year—mainly due to changes in Canadian tax laws.
The Toronto-Dominion Bank (NYSE/TD)
Like its competitor BMO, TD Bank’s results are negatively affected by restructuring charges. Reported net income is at $1.86 billion or an EPS of $0.97. This shows a 6.7% decrease from $1.99 billion or $1.04 EPS from the same period last year. However, after excluding one-time items such as a $337 million restructuring charge, adjusted net income is at $2.17 billion with adjusted EPS at $1.14—nearly a 10% increase year-over-year. (Source: TD Bank Group, May 28, 2015.)
Among TD’s operations, Canadian retail generated a net income of $1.4 billion this quarter, a solid eight percent increase over the same quarter last year. Wholesale banking enjoyed the fastest growth due to higher fee-based and trading-related revenue; jumping up 19% to $246 million in net income.