TORONTO (Reuters) – Toronto-Dominion Bank TD.TO and Canadian Imperial Bank of Commerce CM.TO beat analyst expectations for third-quarter profit on Thursday as strong earnings growth in their capital markets businesses helped offset weakness in almost every other unit.
The results close out a reporting season that saw all but one of Canada’s six major banks beat expectations, as conservative provisions in the prior quarter and a jump in trading revenues helped limit the hit from the coronavirus pandemic.
Even so, the banks warned of an uncertain environment ahead as government assistance and loan deferral programs wind down in the fourth quarter. While they anticipate an increase in delinquencies as a result, the lenders said the allowances they have built up should cover an increase in bad loans, as long as current economic assumptions hold.
Shares of TD, Canada’s second-largest lender, rose 0.9% to C$66.97 in Toronto, while CIBC shares climbed