National Bank scraps borrowers’ ability to transfer mortgages to new home

National Bank scraps borrowers’ ability to transfer mortgages to new home

National Bank of Canada no longer allows customers to transfer their existing mortgages after purchasing new properties, meaning customers hoping to move to new homes can’t hold on to low interest rates locked in before the recent surge in borrowing costs. The change, which applies nationwide, was implemented on June 30 as part of “a … Read more

CIBC loses billion-dollar suit to New York hedge fund over debt deals dating back to the 2008 US housing crisis

CIBC loses billion-dollar suit to New York hedge fund over debt deals dating back to the 2008 US housing crisis

The CIBC headquarters in Toronto on Oct. 25, 2021.Evan Buhler/The Canadian Press Canadian Imperial Bank of Commerce CM-T could be forced to pay more than US$1-billion in damages after being found liable for losses incurred by a New York hedge fund over two debt deals dating back to the 2008 US housing crisis. CIBC said … Read more

Canada’s Big Six banks reported fourth-quarter earnings this week. Here’s what you need to know

Canada’s Big Six banks reported fourth-quarter earnings this week.  Here’s what you need to know

Canada’s biggest banks reported their fourth-quarter earnings this week, covering the three months ending Oct. 31, as analysts gauge the strength of the banking sector before heading into an expected slowdown (and possible recession) next year. Bank of Nova Scotia, Royal Bank of Canada and Toronto-Dominion Bank topped analysts’ forecasts. Meanwhile, National Bank, Canadian Imperial … Read more

TD Bank’s fourth-quarter profit exceeds expectations on higher rates boost

Canada’s Big Six banks reported fourth-quarter earnings this week.  Here’s what you need to know

A man walks past the TD Bank in the Bay Street Financial District in Toronto on Aug. 5, 2022.Nathan Denette/The Canadian Press Toronto-Dominion Bank reported adjusted fourth-quarter profits that beat expectations and raised its dividend as higher margins earned on loans helped drive strong retail banking returns in Canada and the US TD is one … Read more

How RBC pulled off its highly-coveted $13.5-billion deal for HSBC Canada — with some unintended help from Ottawa

How RBC pulled off its highly-coveted .5-billion deal for HSBC Canada — with some unintended help from Ottawa

A combination of external and internal factors made RBC’s HSBC deal a reality.Duane Cole/The Globe and Mail He’ll never want to admit it, but Royal Bank of Canada RY-T chief executive Dave McKay can thank Prime Minister Justin Trudeau, at least in part, for landing Canada’s most coveted bank deal in decades. Like many of … Read more

Scotiabank’s fourth-quarter profit slips on higher costs, increased loan-loss provisions

Scotiabank’s fourth-quarter profit slips on higher costs, increased loan-loss provisions

Bank of Nova Scotia BNS-T reported lower fourth-quarter profit as increased expenses and the bank set aside more money to cover loans that could default, putting pressure on earnings from retail and investment banking. Scotiabank earned $2.1-billion, or $1.63 per share, in the quarter that ended Oct. 31. That compared with $2.6-billion, or $1.97 per … Read more

RBC to buy HSBC’s Canadian unit for $13.5-billion in biggest domestic banking deal on record

RBC to buy HSBC’s Canadian unit for .5-billion in biggest domestic banking deal on record

Royal Bank of Canada RY-T is buying HSBC Bank Canada for $13.5-billion in cash in the largest deal ever reached between two domestic banks in the country. The transaction, which is subject to regulatory and government approvals, would see RBC consolidate its position as Canada’s largest bank. The purchase price represents a multiple of 9.4 … Read more

Effect of interest rate hikes on Canadian economy will be ‘more powerful’ than people think, Poloz says

Effect of interest rate hikes on Canadian economy will be ‘more powerful’ than people think, Poloz says

Former Bank of Canada governor Stephen Poloz delivers a keynote address to a business conference in Ottawa, on Nov. 24.Adrian Wyld/The Canadian Press The full effects of interest rate hikes have yet to be felt – and will be “even more powerful” than many anticipate, said former Bank of Canada governor Stephen Poloz Thursday in … Read more

Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

Interest rates need to keep rising to fight inflation, Tiff Macklem tells MPs

Bank of Canada Governor Tiff Macklem waits to appear before the House of Commons finance committee in Ottawa on Nov. 23.Adrian Wyld/The Canadian Press Parliamentarians questioned Bank of Canada Governor Tiff Macklem about inflation and historic financial losses at the central bank on Wednesday, with top opposition politicians looking to frame the bank’s continuing dilemmas … Read more

Yes, banks profit from borrowers who are squeezed by higher rates. But there’s more to the story

Yes, banks profit from borrowers who are squeezed by higher rates.  But there’s more to the story

Dec. 7 will be a good day in Canadian banking. The Bank of Canada has an opportunity to adjust its trendsetting overnight rate that day, and an increase of 0.25 to 0.5 of a percentage point is widely expected. Like flipping a switch, banks will replicate that increase in their prime lending rate and, in … Read more