TD, CIBC still crank out higher profits amid economic downturn

Two more of Canada’s big banks are reporting better-than-expect profits in the face of lower oil prices and a softening economy.

Toronto-Dominion says strong growth from its retail financial services in Canada and the United States and its wholesale banking arm combined to drive up its third-quarter net profit by 7.5 per cent to $2.266 billion.

Meanwhile, CIBC  increased its third-quarter net income to $978 million, up 6.2 per cent from the same time last year, driven by improvements at its core Canadian banking business and wealth management services.

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The results followed reports from Bank of Montreal and Royal Bank of Canada that showed two of the country’s other “Big Six” banks continued to generate healthy earnings despite the slowing economy.

RBC’s profit for the three months ended July 31 was up four per cent from a year ago and topped expectations. BMO’s earnings rose six per cent, it said.

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Canadian operations

TD said its Canadian retail arm increased its net income by 11 per cent over the third quarter of 2014, to $1.6 billion, while its U.S. retail arm reported $674 million of net income, up 20 per cent or $113 million from last year.

CIBC’s core retail and business banking unit generated about two-thirds of the total net income. It rose by $47 million or eight per cent from a year earlier to $636 million — mainly due to higher revenue and lower loan losses.

Both banks’ earnings beat analyst estimates.