TORONTO – Combined profits at the country’s biggest banks slipped to $7.63 billion in the third quarter, even though most of them reported stronger results for the period.
A year ago, Canada’s top five banks — Royal Bank (TSX:RY), TD Bank, Scotiabank, CIBC (TSX:CM) and Bank of Montreal (TSX:BMO) — combined to earn $7.8 billion in the same period.
It came down to a few isolated reasons for the decline, centred at TD Bank and Scotiabank. The two banks were the only ones to report lower profits for the three months ended July 31 compared with a year ago.
TD Bank (TSX:TD) was hit by losses related to its insurance business due to claims associated with the recent severe flooding in Alberta and the Toronto area. The loss of $243 million at TD Insurance affected the bank’s overall results.
TD Bank earned $1.53 billion or $1.58 per diluted share, compared with $1.7 billion or $1.78 per share in the year-earlier period.
Meanwhile, Scotiabank’s results were down compared with a year ago when they were boosted by the sale of its headquarters in downtown Toronto.
Scotiabank (TSX:BNS) earned $1.77 billion or $1.37 per share compared with $2.05 billion or $1.69 per share in the same period last year.