Royal Bank of Canada (TSX:RY), Toronto-Dominion Bank (TSX:TD) and Canadian Imperial Bank of Commerce (CIBC) (TSX:CM) all topped analyst profit estimates on Thursday, as strength in domestic banking and lower loan loss provisions helped the lenders navigate a challenging…
croeconomic backdrop marked by US-Canada trade tensions. The three banks largely benefited from strong growth at home and lower provisions for credit losses, or the money set aside to shield profits from souring loans
Royal Bank posted adjusted earnings per share of C$3.90 for the quarter ended April 30, beating the C$3.79 estimate, as net income rose 25% year over year to C$5.5 billion. Return on equity reached 17.2%, surpassing the bank’s recently elevated 17% target. Provisions for credit losses fell 36% year over year to C$912 million, accounting for much of the beat.
RBC raised its quarterly dividend 7% to C$1.76 per share and announced plans to repurchase up to 45 million common shares. Shares fell roughly 1%. Toronto-Dominion reported adjusted EPS of C$2.38, ahead of the C$2.26 consensus, with record second-quarter earnings in Canadian Personal and Commercial Banking, Wealth Management, and Wholesale Banking.