The Financial Post reports in its Wednesday, Nov. 25, edition that executives at Canada's largest banks have been stuck on repeat, telling investors about their efforts to cut and control costs.
The Post's Christina Pellegrini writes that Scotia Capital analysts say starting a week Tuesday and through early December, this chorus "will reach a crescendo" when the banks report earnings for the last time this fiscal year.
A trio of financial institutions have already announced that they will record restructuring costs in the fourth period: $85-million in severance and professional fees, before taxes, at National Bank of Canada; an estimated $200-million at Canadian Imperial Bank of Commerce; and about $300-million at Toronto-Dominion Bank, according to Scotia. Already in 2015, CIBC recorded $85-million in restructuring charges, before taxes, and TD has booked $337-million.
Canadian banks are aggressively protecting their profits in the face of a sluggish domestic economy, slowing loan growth, changing consumer habits and a fresh crop of new deep-pocketed competitors. Scotia analysts say fourth quarter results might be soft, but they will not be catastrophic.
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