The document summarizes key financial indicators for Canada's top 6 banks in fiscal year 2014. It finds that total net income for the banks reached $33.3 billion in 2014, an 8.6% increase from 2013. While the top 3 banks (RBC, TD, Scotia) saw income growth, CIBC had a slight decline. Some banks are cutting staff or divesting businesses in anticipation of slower growth due to factors like peaked domestic lending and low commodity prices. Key performance metrics like total revenue, net income, return on equity, and earnings per share are presented for each bank, with RBC leading in most categories but TD showing the strongest year-over-year growth.

1. The Top 6 Canadian Banks:
Selected Indicators of FY 2014 Results
December 2014December 2014

2. Contents
Overview
3.
Key Performance Indicators
4.
Total Revenue
5.
Net Income
6.
Return on Equity
7.
Earnings Per Share
8.
Summation
9.
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3. Canada's Top 6 Banks –A banner 2014, but anticipation of a more challenging 2015
•Net income for the top 6 Canadian banks reached around $33.3 billion in FY 2014*, a healthy increase of 8.6% vs. FY 2013
•While the top 3 banks (RBC, TD, and Scotia) led in net income growth, CIBC actually saw a slight decline vs. FY 2013
•Perhaps anticipating a slowdown in growth due to a variety of factors such as topped-out domestic lending and low commodity prices, some institutions are proactively cutting back staff (e.g. Scotia) or divesting businesses due to soft regional business activity (e.g. RBC in the Caribbean)**
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* The banks’ fiscal year is Nov 1-Oct 31
** Globe and Mail, Nov. 30 2014

4. Key Performance Indicators
Among the key performance indicators for the top 6 banks are:
•Total Revenue
•Net Income
•ROE (Return on Equity)
•EPS (Earnings per Share)
The following charts show how each bank performed in a universe of top 6 bank results.
(Sources: Reported Top 6 Banks’ FY 2014 results)
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5. Top 6 Banks –FY 2014 % Share of Top 6 Revenue
•RBC continued unsurprisingly, to lead in total revenue for FY 2014, followed by TD and Scotiabank
•RBC also showed the greatest positive % growth VYA
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6. Top 6 Banks –FY 2014 % Share of Top 6 Net Income
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•While RBC clearly led in reported net income for FY 2014, TD showed the greatest % growth vs. a year ago (VYA)
•Of the top 6 banks, only CIBC actually showed a % decline in reported net income VYA

7. Top 6 Banks –FY 2014 Return on Equity (ROE)
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•Return on equity, which takes into account the retained earnings from previous years, declined for 5 of the 6 major banks
•While RBC and CIBC led in FY 2014 ROE, TD was the only bank that showed a positive growth in ROE VYA

8. Top 6 Banks FY 2014 Earnings Per Share (EPS)
•Preventing a clean sweep by RBC, National Bank led in Earnings per Share (EPS)
•Both CIBC and RBC however posted significant improvements vs. Q3 2011
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•While CIBC led in reported EPS, TD showed the greatest % growth VYA, though it still ranked last in reported EPS

10. Deepak Pershad, Principal
dpershad@insightsbydesign.ca
www.insightsbydesign.ca
416.925.6536