For the second quarter, CIBC reports net income of $1.05 billion, compared with $941 million for the second quarter a year ago, and $1.41 billion for the prior quarter.
Adjusted diluted earnings per share were $2.64, compared with $2.40 for the second quarter a year ago, and $2.89 for the prior quarter.
Reported return on common shareholders’ equity (ROE) was 17.7% and adjusted ROE was 18.1%.
The bank reports that results for the second quarter of 2017 were affected by the following items of note, aggregating to a negative impact of $0.05 per share:
- $20 million ($15 million after-tax) in transaction and integration-related costs associated with the acquisition of PrivateBank; and
- $6 million ($5 million after-tax) amortization of intangible assets.
Wealth management reported net income of $154 million for the second quarter, up $41 million or 36% from the second quarter a year ago. Excluding the items of note, adjusted net income was $155 million, up $40 million or 35% from the second quarter a year ago, driven by higher revenue, partially offset by higher expenses. The higher revenue was driven by growth in assets under administration (AUM).
AUM for Q2 was $198.4 billion, compared to $186.1 billion in Q1 and $169.0 billion in Q2 2016.
Read the CIBC report to shareholders.
RBC
Royal Bank of Canada boosted its second-quarter net income by 9% to $2.81 billion. That compares with $2.57 billion during the second quarter of 2016.
Profit amounted to $1.85 per share, compared with $1.66 per share during the same period last year.
The Toronto-based bank had $10.31 billion of revenue for the period ended April 30, up from $9.53 billion a year ago.
In a report to shareholders, Royal Bank says, “Results were driven by strong earnings in capital markets, investor and treasury services, and wealth management, and solid earnings in personal and commercial banking, partially offset by lower results in insurance.”
Wealth management net income of $431 million was up $45 million or 12% from a year ago, mainly due to increased earnings resulting from growth in average fee-based client assets–these benefited from favourable equity markets, and higher net interest income reflecting volume growth and the impact from higher U.S. interest rates.
These factors were partially offset by higher variable compensation on improved results, and higher costs in support of business growth.
Overall, RBC’s AUM and AUA both grew compared to Q1 2017 and to a year earlier. AUM for Q2 2017 was $614.6 billion, compared to $584.1 billion in Q1 and $544.9 billion a year earlier. AUA, which was $5.3 trillion for the quarter, includes securitized residential mortgages and credit card loans.
Read Royal Bank’s report to shareholders.
TD Bank
TD Bank had $2.5 billion of net income during the second quarter, up 22% from a year ago.
Earnings amounted to $1.31 per share. That compares with $1.07 per share or $2.05 billion of net income during the same period last year.
The Toronto-based bank had $8.47 billion of revenue during the three-month period ended April 30, up from $8.26 billion a year ago.
Read: How banking profits will exceed $80 million in 2017
The bank’s Canadian retail revenue, which includes Canadian personal and commercial banking, and wealth and insurance businesses, had net income of $1.6 billion, an increase of 7% from the same quarter last year. That reflects strong volume growth, which was led by:
- record average balances and accounts in core chequing;
- strong growth across commercial loans and deposits;
- and market share gains in wealth assets, along with reduced loan losses.
The bank reports that increased non-interest expenses in Q2 relate to ongoing investments in digitizing the customer experience and enhancing product offerings.
According to its earnings release for the quarter, both the bank’s AUM and AUA grew, compared to Q1 and earnings a year earlier. AUA was $404 billion for Q2 2017, compared to $390 billion in Q1 2017 and $355 billion a year earlier. AUM was $279 billion for Q2, compared to $266 billion in Q1 and $256 billion a year earlier.
The bank notes that, “effective the first quarter of 2017, [it] changed the framework for classifying assets under administration (AUA) and assets under management (AUM). The primary change is to recognize mutual funds sold through the branch network as part of AUA. In addition, AUA has been updated to reflect a change in the measurement of certain business activities within Canadian Retail.”
Read: TD Bank profit gains 14% year-over-year
The bank also commented on a review of its sales practices. In its earnings release, Bharat Masrani, group president and CEO, says, “We continue to believe that we do not have a widespread problem with people acting unethically in order to achieve sales goals. As we have indicated, we will act on the opportunities we found to improve our business.”
Read: Tellers are not advisors, big banks clarify and TD head made less in 2016
Read the TD earnings release.
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