Canadian Imperial Bank of Commerce, the country’s fifth-largest lender, may take a C$211 million ($202 million) debt writedown that would lower third-quarter profit, according to Cormark Securities Inc. analyst Darko Mihelic .
Canada’s banks, recognized as the world’s strongest after a year of record profits and rising share prices, will begin to show the effects of a slackening in domestic consumer lending when they report first-quarter results next week.
Bank of Canada Governor Mark Carney ’s plea for households to cut debt, which surpassed the U.S. for the first time in 12 years, is starting to get through to homeowners like Gary Taitt. That may crimp earnings at the country’s biggest banks.
Bank of Nova Scotia, Canada’s third- biggest lender by assets, said fiscal first-quarter profit rose 6.5 percent on higher earnings from wealth management and domestic consumer lending. The company increased its dividend 3.2 percent to 64 cents.