Banks Beat Estimates with Trading Boosting Canadian Banks
Toronto-Dominion Bank and Royal Bank of Canada have topped estimates with better-than-expected wealth-management and capital-markets results, driven by higher trading activity. The country's second-largest lender and largest bank earned C$2.02 per share on an adjusted basis in its fiscal first quarter, beating the C$1.95 average analyst estimate. Earnings in their wealth-management and insurance units totaled C$680 million ($474 million) and C$980 million, respectively, reflecting market appreciation and net sales.
- The significant trading volumes and market growth seen by these banks could have long-term implications for their investment strategies and asset allocation.
- How will the ongoing uncertainty around US tariffs impact Canadian lenders' loan provisions and credit risk management in the coming months?