This article provides a summary of some of the key takeaways from the reports.
Overall, it appears that the banks made an impressive showing for Q3 – with increased profits and record-high loan volumes. Most banks reported that mortgage loans were up, with many seeing loan growth of more than 10%. Particularly noteworthy was the Royal Bank of Canada, which reported mortgage loan growth of 21% year-over-year. It appears that the low interest rate environment coupled with ongoing consumer confidence has given banks a boost in loan volumes.
In terms of profit, most banks reported double-digit increases compared to the same period last year. This is largely attributed to increased loan volumes, as well as cost-cutting measures taken by the banks. Bank of Montreal was the notable exception with a 3% decrease in profits due to the costs associated with the restructuring of its US operations.
The report also touches upon the issue of delinquencies. Most banks reported low delinquency rates, with only minor increases in some areas. This suggests that any upticks in delinquencies are largely isolated events due to localized economic issues.
Finally, the banks reported that they were continuing to increase their mortgage origination process. This suggests that the banks are doing everything they can to meet the growing demand for mortgages, while at the same time minimizing their risk exposure.
In summary, the Q3 2016 bank earnings reports show that banks across Canada are doing well. Loan volumes are up double-digits compared to the same period last year, and profits are increasing despite some costs associated with restructurings. Delinquencies appear to be low and manageable, and banks are taking steps to ensure that the mortgage origination process remains efficient. All in all, things are looking up for banks in Canada.
This article was contributed on Jul 26, 2023
