Dexia SA’s planned breakup raises the prospect of a takeover of some businesses by Royal Bank of Canada, Barclays Capital analyst John Aiken said.
Canadian Imperial Bank of Commerce will probably post its first profit decline in more than four years after selling half of a key credit-card business and taking a writedown on its Caribbean banking operations.
Canada’s largest lenders, whose shares soared to record highs last month, are banking on wealth management to help counter a capital markets slump and weaker consumer borrowing.
Canadian banks reinforced their appeal to investors seeking higher yields amid persistent low interest rates as three of the country’s largest lenders raised quarterly dividends.
"We have seen Royal Bank reviewing its operations over the last several years, and the departure from the Caribbean is not terribly surprising."
- John Aiken on Nov 21, 2014