A by-the-numbers look again at Canadian finance in 2024

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TORONTO — The large questions in Canadian finance heading into 2024 had been whether or not the financial system may keep away from a recession and what would occur with rates of interest.

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The uncertainty at first of the yr had banks tucking billions of {dollars} apart in case the image worsened for heavily-indebted Canadian shoppers as many renewed their mortgages at a lot greater charges.

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As the yr involves a detailed, it’s clear banks and debtors fared higher than feared, leaving a number of the greatest tales within the monetary business to be blockbuster offers, surprises and scandals at particular person lenders.

Here’s a have a look at a number of the key numbers that inform the story of 2024 for the Canadian monetary sector:

$58,771,000,000: The adjusted earnings of the Big Six banks within the 2024 fiscal yr. That’s up a billion {dollars} from a yr earlier, although nonetheless slightly beneath the highs of 2021-2022. Heading into 2024, there have been heightened fears about mortgage defaults and borrower stress with rates of interest working excessive. The strains did result in subdued mortgage progress, however with Canada settling right into a delicate financial touchdown, banks nonetheless managed strong earnings. Expectations are for higher progress in 2025, principally within the second half of the yr, as rate of interest cuts have time to work by way of the financial system.

3.25 per cent: The Bank of Canada rate of interest on the finish of the yr, down from 5 per cent at first of June. Banks adopted the central financial institution’s lead and have lowered their prime charges to five.45 per cent. More cuts are on the best way for 2025 with RBC anticipating the central financial institution price to decrease its key price to 2 per cent by July due to the weak financial system. Meanwhile, the U.S. rate of interest got here down solely half a proportion level as its financial system stays a lot stronger. The United States Federal Reserve recommended earlier this month it could reduce simply twice subsequent yr.

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0.20 per cent: The mortgage delinquency price in Canada on the finish of the third quarter, in keeping with Equifax Canada. That’s up from a traditionally low 0.14 per cent two years in the past, however nonetheless beneath the greater than 0.30 per cent that it averaged within the years earlier than the pandemic. Banks count on delinquencies to creep greater subsequent yr as job losses develop, however say general, they’re comfy with their mortgage portfolios.

$4.45 billion: What TD Bank Group paid the U.S. authorities for its oversight failures on anti-money laundering controls. The financial institution took full duty for the failures, which led to criminals laundering greater than $965 million in illicit drug earnings by way of its branches within the U.S. Regulators additionally capped its retail asset progress. TD chief govt Bharat Masrani introduced he would retire within the new yr, to get replaced by Raymond Chun.

780,000: The variety of prospects who had been moved over to RBC after Canada’s largest financial institution closed its $13.5 billion acquisition of HSBC Canada in March. RBC additionally took on about 4,500 workers and $108.5 billion in belongings. The acquisition took out a dynamic participant within the mortgage house, however banks preserve that price competitors stays fierce.

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$246,000,000,000: RBC’s market capitalization as of the final Friday of the yr, after an virtually 30 per cent climb in 2024. The positive factors got here thanks partially to the HSBC deal closure, in addition to easing worries from traders across the banking sector. Royal Bank is by far Canada’s largest firm by market cap, forward of Shopify at round $199 billion and effectively forward of TD Bank Group at $133 billion, after TD misplaced slightly greater than 10 per cent of its worth over the yr.

$49 million: The quantity RBC’s former chief monetary officer Nadine Ahn sued the financial institution for over claims of wrongful dismissal. RBC had fired Ahn in April over allegations she had an “undisclosed shut private relationship” with one other worker, who obtained preferential therapy. Back and forth authorized filings revealed quite a few private particulars about her relations together with her colleague, together with pet names, a poem and a “Love Book” picture album, however Ahn maintains it was a office friendship and never the shut private relationship as RBC alleges. Ahn signed on as deputy chief monetary officer of Canaccord Genuity in October.

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557,400: The variety of shares {that a} Scotiabank subsidiary held in Israeli defence contractor Elbit Systems Ltd., value about US$144 million, close to the tip of the yr. That’s down from the two,236,500 shares, value about US$443 million, that it held close to the tip of 2023. Scotiabank had confronted quite a few protests associated to the holdings due to Elbit’s position in supplying Israel weapons for the struggle within the Gaza Strip, but it surely stated the choice by its 1832 Asset Management to promote wasn’t influenced by the protests.

US$104 billion: The quantity of fossil gas funding Canada’s 5 greatest banks offered in 2023, as outlined in a March report from a coalition of local weather teams. For most banks, it was their lowest stage of oil and gasoline funding because the signing of the Paris local weather settlement in 2015, however the drop additionally got here as big oil and gasoline earnings lowered the business’s must borrow. RBC, which topped the listing within the report at US$28.2 billion, additionally dedicated to tripling its renewable vitality funding to $15 billion by 2030.

60 per cent: The present most authorized rate of interest lenders can cost, primarily based on an efficient annual rate of interest foundation that elements in compounding. It works out to 48 per cent on an annual proportion price. The federal authorities moved ahead this yr with rules that may see the speed capped at 35 per cent on an annual proportion price. The change, which additionally places new restrictions round payday loans, comes into impact Jan. 1.

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