Toronto-Dominion Bank and National Bank of Canada, trading at record highs after posting earnings this week that topped analysts’ estimates, are poised to rally further as rising interest rates make mortgages and car loans more profitable.
Royal Bank of Canada, Toronto- Dominion Bank and Canadian Imperial Bank of Commerce joined the country’s other lenders in topping analysts’ estimates for third-quarter earnings, lifted by record profits in domestic consumer lending and wealth management.
Warren Buffett, the former hedge fund manager who built Berkshire Hathaway Inc. into a $195 billion company by gaining leverage through insurance premiums, said this traditional source of new funds is drying up.
Canadian lenders including Royal Bank of Canada and Toronto-Dominion Bank decided more than a year ago to target business loans and wealth management because record consumer lending was bound to dry up.
Berkshire Hathaway Inc. is poised to report its biggest year-over-year increase in book value per share since 2010 on gains from investments, operating-business earnings and Chairman Warren Buffett’s equity-derivative bets.
Berkshire Hathaway Inc.’s first- quarter profit doubled as insurance units and derivative bets posted better results, the company said yesterday as it prepares for Chairman Warren Buffett’s annual meeting.