These days, while American banks are in deep trouble, there is talk of nationalizing American banks and British banks are being nationalized (Royal Bank of Scotland just had the dubious distinction of reporting the biggest loss in the history of British business, with loss of more than 25 billion $ for the last quarter), it seems Canadian banks have nothing else to do but to count their money and laugh all the way to the bank.
First Toronto Dominion Bank reported substantial profits, which while down from last year, exceeded expectations.
Then came Royal Bank. Royal Bank (TSX:RY) reported first-quarter profit down 15 per cent at $1.05 billion from $1.25 billion a year ago. Total revenue rose $6.94 billion from $5.65 billion and the quarterly dividend was unchanged at 50 cents per share.
CIBC’s story is even more remarkable. A year ago CIBC reported a loss of 1.46 billion $, mainly because of exposure to sub prime mortgages.. But CIBC turned itself around in these harsh, bleak times and CIBC (TSX:CM) reported first-quarter profit of $147 million, reversing a year-ago $1.46-billion loss. The bank booked $483 million in an after-tax loss on structured credit run-off activities. The quarterly dividend is unchanged at 87 cents
So the profit of 147 million $ is after salting away 483 million $ to compensate for any future losses.
Incidentally, the dividend paid by Royal Bank and CIBC are 6.1% and 7.6% respectively. Not only banks are doing very well, but they are in a good position to weather further downturn in the economy. It looks like the dividend will stay the same, I don’t see any of the banks cutting the dividend.
Quite a remarkable Canadian success story. I know it is fashionable to gripe and grumble about the banks, to complain about service charges etc. But I would hope that the current economic meltdown causes Canadians to appreciate our banks, the splendid job they do. Canadian banks are a pillar of stability in these unstable, bleak economic times.
First Toronto Dominion Bank reported substantial profits, which while down from last year, exceeded expectations.
Then came Royal Bank. Royal Bank (TSX:RY) reported first-quarter profit down 15 per cent at $1.05 billion from $1.25 billion a year ago. Total revenue rose $6.94 billion from $5.65 billion and the quarterly dividend was unchanged at 50 cents per share.
CIBC’s story is even more remarkable. A year ago CIBC reported a loss of 1.46 billion $, mainly because of exposure to sub prime mortgages.. But CIBC turned itself around in these harsh, bleak times and CIBC (TSX:CM) reported first-quarter profit of $147 million, reversing a year-ago $1.46-billion loss. The bank booked $483 million in an after-tax loss on structured credit run-off activities. The quarterly dividend is unchanged at 87 cents
So the profit of 147 million $ is after salting away 483 million $ to compensate for any future losses.
Incidentally, the dividend paid by Royal Bank and CIBC are 6.1% and 7.6% respectively. Not only banks are doing very well, but they are in a good position to weather further downturn in the economy. It looks like the dividend will stay the same, I don’t see any of the banks cutting the dividend.
Quite a remarkable Canadian success story. I know it is fashionable to gripe and grumble about the banks, to complain about service charges etc. But I would hope that the current economic meltdown causes Canadians to appreciate our banks, the splendid job they do. Canadian banks are a pillar of stability in these unstable, bleak economic times.
