Canada’s banks had another sound fiscal year in 2018, recording strong profits and continuing to build an international footprint that should ensure growth going into the final year of the decade. Banks were buoyed by a strong economy in Canada and across the border in the US (where many Canadian banks also operate), low domestic unemployment and rate hikes from the Bank of Canada. Personal lending slowed marginally, but was easily compensated by a solid performance in commercial lending.
The largest bank in the country, Royal Bank of Canada, reported a record C$12.4bn ($9.4bn) in net income for the fiscal year that ended October 31, 2018. The second and third banks in the system, Toronto Dominion (TD) and Scotiabank, also saw incomes rise, reaching a respective C$11.3bn and C$8.7bn for the fiscal year.