Thread by @globeandmail

Canada's big banks are at last showing signs that COVID-19 is taking a financial toll, writes @jembradshaw.

The Big Six banks released their fourth-quarter earnings – and announced dividend hikes – earlier this week.
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While the core of earnings is not yet back to prepandemic form, there are indications that demand from borrowers is coming back to life.

Profits of the Big Six banks totalled $14.6-billion in the fiscal fourth quarter.
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Overall allowances for credit losses are still well above prepandemic levels and RBC and National Bank have only released about half of the extra allowances they built up during the crisis.
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Bank of Nova Scotia and Royal Bank of Canada saw credit card balances increase 4 per cent from the third quarter, but card balances are still significantly lower than they were before COVID-19.
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As CIBC wrapped up a resurgent year, its quarterly earnings faltered.

The bank’s costs ballooned as it ramped up spending to improve its retail banking performance, upgrade technology and revitalize its image with a new logo and brand.
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Meanwhile, TD reversed a string of underwhelming financial results with fourth-quarter profit that topped analysts’ expectations.
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Lastly, BMO reported higher fourth-quarter profit and raised its dividend by 25 per cent.

Strong retail banking income and recoveries from loan loss reserves helped the bank beat analysts’ estimates.
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What are the growing challenges facing Canadian banks as the COVID-19 pandemic wanes? What do these bank earnings signal for 2022?

Read the full story by @jembradshaw: tgam.ca/3Ge20gF