With the housing market slowing, consumer debt at a record high and signs of weakness in business investment, everybody’s scratching their heads wondering where Canadian banks’ record profits are coming from.
Scotiabank was the last to report, announcing last week it had $1.625 billion in unadjusted net income in the first quarter of its fiscal year. RBC reported $2.07 billion in net income; TD recorded $1.79 billion; BMO had a net income of $1.048 billion; and CIBC reported the weakest results of the bunch, with a profit of $798 million.
That’s a lot of profit for three months of work — $7.331 billion in all, by our calculations.
How much money, exactly, is that? To help wrap our heads around it, here are some things that $7.3 billion will buy you: