Three of Canada’s Big 5 banks reported fourth quarter 2023 financial results on Thursday, two of which exceeded expectations while one fell short.
Royal Bank of Canada (TSX:RY) earned $2.78 per diluted share on an adjusted basis during the period, unchanged from a year ago, but better than the $2.62 per share analyst consensus estimate.
Royal’s revenue, meanwhile, rose to $13.03 billion from $12.57 billion a year earlier, while its provision for credit losses increased to $720 million from $381 million during the same period last year.
The company also increased its quarterly dividend by $0.03 to $1.38 per share.
Royal Bank shares gained nearly 3% to $121.93 in midday trading on Thursday.
Canadian Imperial Bank of Commerce (CIBC) also beat estimates with its results, posting earnings of $1.57 per diluted share on an adjusted basis, up from $1.39 a year earlier and better than expectations of $1.53 per share.
CIBC’s revenue rose to $5.84 billion from $5.39 billion, while its provision for credit losses increased to $541 million from $436 a year ago.
It also upped its quarterly dividend by $0.03 to $0.90 per share.
Shares of CIBC gained 4% to $40.85.
Finally, TD saw its quarterly profit fall to $1.83 per diluted share from $2.18 during the same period last year, while also missing the analyst consensus forecast of $1.90 after the bank took a $363-million restructuring charge related to the elimination of 3,100 employees.
Its loan-loss provision for the period also increased to $878 million during the quarter, up from $261 million a year earlier.
That didn’t stop the Big Bank from raising its quarterly dividend also, increasing the shareholder payout by $0.06 to $1.02 per share.
TD shares eased 0.7% to $82.69 on Thursday.
Contact Sean at sean@proactiveinvestors.com