Here are the segment highlights:
Net income was $1.4B, down 22% YoY (+6% adjusted), on good revenue growth, and higher volumes, partially offset by higher non-interest expenses.
PCL increased by $47MM QoQ. PCL-impaired increased $19MM, primarily in the personal lending portfolios; and PCL-performing increased $28MM due to credit migration in the personal lending and commercial portfolios.
Expenses increased 33% YoY reflecting charges related to the agreement with Air Canada and the acquisition of Greystone, strategic initiatives, and employee growth.
In $U, US Retail net income increased 25% YoY (16% adjusted)
PCL increased 23% QoQ. PCL-impaired increased $57MM, reflecting higher provisions for the commercial portfolio, coupled with credit and card auto portfolio seasonal trends. PCL-performing decreased $14MM, primarily reflecting migration from performing to impaired in the commercial portfolio.
Expenses increased 6% YoY reflecting higher investments in business initiatives, business volume growth, and higher employee-related costs, partially offset by productivity savings and the elimination of the FDIC deposit insurance surcharge.
Net loss for the quarter was $17MM, a decrease in net income of $295MM, reflecting lower revenue, higher PCL, and higher non-interest expenses
PCL was $7MM, compared with $8MM in the prior quarter.
Non-interest expenses rose 14%, reflecting the benefit of revaluation of certain liabilities for post-retirement benefits recognized in the prior year, continued investments in client-facing employees supporting the global expansion of Wholesale Banking's U.S. dollar strategy, and the impact of foreign exchange translation.
Re-disseminated by The Asian Banker