Canadian banks came out with another glorious quarter. Each of them made money – more than last quarter.
Financial stocks are said to be the indicator of future. Despite of a stunning show of income it failed to boost the stock market.
Credit Card business has remained relatively flat. It is likely HELOCs are slowly replacing credit cards.
Quarterly Report of CIBC
Net Income: Q3, 12 – $841 million compared to $811 million for the previous quarter. Spread became narrower compared to the last quarter. It will now put more effort in selling mortgages from its branches – after closing FirstLine.
Net Income $970 million. Net income up more than 30% year over year.
Net income of $2,240 million in Q3, 2012, up 73% from $1,294 million in Q3, 2011. RBC has the largest un-insured portfolio in residential mortgages.
Scotiabank reported solid third quarter earnings of $2.05 billion, or $1.44 billion excluding the gain from sale of the Scotia Plaza property in Toronto. Its net income grew by 57% year over year. According to its report – the reasons for the jump was mainly due to growth in residential mortgages, auto and commercial lending in Canada.
Reported net income of $1,820 million, up 11% year over year. 75% of HELOCs are in first lien position; a further 20% are in second to a TD first. TD’s HELOC portfolio did not go up much – as anticipated – after the hyped launch of collateral charge mortgage.
Lenders Market Share
Loan to Value Distribution
Geographic Distribution of Mortgage Insured and Un-insured
Geographical Presence of Lenders
Bad Loans and Credit Cards
Capital Ratio of Canadian Banks
For most of the banks 2011 was GAAP reporting and 2012 is based on IFRS – So, there are some differences in numbers.
Business loans include some other types of loans which may skew the chart.