The shares of both Canadian Imperial Bank of Commerce (CIBC) and Toronto Dominion Bank (TD) slid on Thursday after there were soft results in a disappointing earnings for the fourth-quarter season for the Canadian lenders posted and made available to the public.
The Toronto Dominion Bank reported a profit that is much weaker than what is anticipated. It reported weak profit even when its earnings and revenue rose. The bank is very honest to even report that they are expecting a much more challenging operating environment for the coming year – 2015.
On the other hand, Canadian Imperial Bank of Commerce announced that its overall profit went down from a year earlier. They said that their profit decline was due to their loss of revenue in their credit card section and much softer results at its wholesale banking division.
Shares of TD bank went down by 2.8 percent to C$55.30 in Toronto’s early trading. On the other hand, the shares of CIBC dell by a total of 1.5 percent to C$105.59.
According to John Aiken, who is the popular Barclays Capital analyst, the fourth quarter earnings report of TD bank is nothing but surprisingly disappointing even for an investor who is known to have a positive bias on TD bank.