CIBC, TD, and BMO Surpass Profit Estimates Amid Market Turmoil

CIBC, TD, and BMO have exceeded analysts' profit expectations as they concluded their fourth-quarter earnings reports. According to the Globe and Mail, despite economic uncertainties, these major Canadian banks benefitted from robust capital markets and wealth management activities driven by increased advisory and trading engagement.

CIBC's capital-markets profit surged by 58 percent to $548 million, while TD's net income from capital markets more than doubled to $494 million, and BMO's capital markets earnings nearly doubled to $521 million.

This surge comes amid a backdrop of improved market conditions and a resurgence in deal activity, particularly in energy and mining sectors, as fears of a downturn eased. Overall, Canadian banks are showing resilience as they navigate the complexities of the economic landscape, with RBC and National Bank also reporting higher-than-expected profits earlier in the week.

As for performance-based compensation, bonuses across Canada's largest banks rose by an average of 15 percent, totaling $27.3 billion, reflecting the heightened activity in capital markets and wealth management, with CIBC's bonus pool increasing by 17 percent to $3.5 billion.

TD has also allocated $5.1 billion for incentive pay, a 14 percent increase compared to 2024, showcasing strong financial performance across its operations, according to the Globe and Mail.