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Home / canada / The warmer US economy will increase the TDC and CBCC profits, but competition is emerging

The warmer US economy will increase the TDC and CBCC profits, but competition is emerging



Toronto's Dominance Bank and the Canadian Imperial Bank of Commerce thanked one US economy for high profits. But in 2019, banks are not expected to do extensive activities due to competition.

TDI and CIBC, Revenue for the past two years For last year's revenue, the United States has so many things since big acquisitions. In recent years, profits from these divisions are encouraging – especially TD. Following the global economic crisis, the US, Personal and Commercial Banks had a 26 per cent jump in net profit at $ 4.2 billion last year.

The present crisis is that the US economy is getting better. A decade old recovery is the rise in inflation and wages. In the past two years, the Federal Reserve has been asked to increase interest rates eight times.

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As business rises, the US banking market is very competitive. "The competition has increased," said DBRS Limited Analyst Robert Colangale. "Even though the US is a huge market, how much banks can have a stake in share – particularly in commercialization."

The executives of both the banks are speaking at the conference on Thursday. Greg Braque, head of the US banking US banking group, said: "That's definitely the competition," when commercial investment is deteriorating.

"We reached a peak," said Lary Ritchin, head of the US region in the CBC. "As prices rise, clients with extra credit are willing to get money."

Retail and commercial banks attract less expensive investments and charge money. In recent years, US banks have been able to charge a lump sum because the interest rate is increasing.

The market for attracting investments is more aggressive. Banks will be forced to pay for deposits and delay their debt margin growth.

More clouds form in the US economy. The US-China tariff dispute has not risen as a trade war, but the risk of the US recession is increasing, according to the Credit Rating Agency Standard and Poor's report.

S & P also said that in the next 12 months, the economic downturn will have a decline of between 15% and 20%. This was between 10 and 15 per cent predicted earlier.

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Despite shifts in the United States, the total revenue from both banks is expected to be next year. Chief Executive Bharat Mastrani predicts that the economy will grow at 7% in 2019 fiscal year.

The CBC is expected to meet 10 per cent of the performance by 5 to 10 per cent. However, the bank is positive about the quality of the credit book. "As we enter into the latter parts of the economic cycle, we are confident in our strong underwriting system and the quality of our credit portfolio, when it is possible to raise our heads." Chief Risk Officer Laura Dotori-Athanasius said. A conference call.

Investors are different for the announcement on Thursday. At the end of the trading day, TDC's shares were flat at $ 73.48. Cumy shares fell by 3 per cent to USD 112.46.

The revenues for the financial year ending October 31 were $ 11.3 billion. As a whole. It is eight per cent more than the 2017 financial year. The CBC's annual profit rose 12 percent year-on-year to $ 5.2 billion.

TDC and CIBC announced details of their participation in the acquisition of Air Canada Lifestyle Rewards Program. The TD has a very strong vehicle for the expedition, paying an advance payment of 1 billion dollars and providing future expenses as an early financial partner. The contract, which begins in 2020, will end in 2030.

CIBC became a second partner in the new deal and agreed to pay $ 292 million to participate.


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