The Globe and Mail reports in its Friday, Feb. 26, edition that Canada's Big Six banks beat Bay Street's expectations by wide margins in the first quarter, beating their own predictions, too.
The Globe's James Bradshaw writes that bank profits totalled $13.9-billion in the three months ending Jan. 31, rising above prepandemic levels. Massive government stimulus programs, roaring financial markets and clients leaning on banks to help them through the crisis have created an unusually opportune climate for banking, in spite COVID-19.
On Thursday, CIBC and TD wrapped up the fiscal first quarter earnings season with results that far surpassed the estimates of analysts. CIBC and TD profits increased 13 per cent and 10 per cent year over year, mirroring the performance reported by other major banks this week.
Bankers said this week that they did not expect to be doing so well at such an early stage in the broader economic recovery. Loan portfolios have had fewer problems than banks anticipated. Key sources of revenue have rebounded more quickly than predicted as gross domestic product and employment rates recovered.
COVID-19 has made banks and telecommunications companies even more necessary to their clients.
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