By Ian Bickis

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

Because the yr involves an in depth, it’s clear banks and debtors fared higher than feared, leaving a few of the largest tales within the monetary business to be blockbuster offers, surprises and scandals at particular person lenders. 

Right here’s a have a look at a few of the key numbers that inform the story of 2024 for the Canadian monetary sector: 

$58,771,000,000 — The adjusted income of the Huge Six banks within the 2024 fiscal yr. That’s up a billion {dollars} from a yr earlier, although nonetheless a little bit under 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 development, however with Canada settling right into a comfortable financial touchdown, banks nonetheless managed sturdy income. Expectations are for higher development in 2025, largely within the second half of the yr, as rate of interest cuts have time to work by the economic system.

3.25% — The Financial institution 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%. Extra cuts are on the way in which for 2025 with RBC anticipating the central financial institution charge to decrease its key charge to 2 per cent by July due to the weak economic system. In the meantime, the U.S. rate of interest got here down solely half a share level as its economic system stays a lot stronger. The Federal Reserve urged earlier this month it might lower simply twice subsequent yr.

0.20% — The mortgage delinquency charge in Canada on the finish of the third quarter, in keeping with Equifax Canada. That’s up from a traditionally low 0.14% two years in the past, however nonetheless under the greater than 0.30% 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 snug with their mortgage portfolios.

$4.45 billion — What TD Financial institution 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 income by its branches within the U.S. Regulators additionally capped its retail asset development. TD chief govt Bharat Masrani introduced he would retire within the new yr, to get replaced by Raymond Chun.

780,000 — The variety of clients 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 staff and $108.5 billion in belongings. The acquisition took out a dynamic participant within the mortgage house, however banks preserve that charge competitors stays fierce.

$246,000,000,000 — RBC’s market capitalization as of the final Friday of the yr, after an nearly 30 per cent climb in 2024. The features got here thanks partially to the HSBC deal closure, in addition to easing worries from traders across the banking sector. Royal Financial institution is by far Canada’s largest firm by market cap, forward of Shopify at round $199 billion and properly forward of TD Financial institution Group at $133 billion, after TD misplaced a little bit 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. Forwards and backwards authorized filings revealed quite a few private particulars about her relations along with her colleague, together with pet names, a poem and a “Love E book” photograph 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.

557,400 — The variety of shares {that a} Scotiabank subsidiary held in Israeli defence contractor Elbit Programs Ltd., price about US$144 million, close to the top of the yr. That’s down from the two,236,500 shares, price about US$443 million, that it held close to the top of 2023. Scotiabank had confronted quite a few protests associated to the holdings due to Elbit’s position in supplying Israel weapons for the conflict within the Gaza Strip, nevertheless it mentioned the choice by its 1832 Asset Administration to promote wasn’t influenced by the protests.

US$104 billion — The quantity of fossil gasoline funding Canada’s 5 largest banks offered in 2023, as outlined in a March report from a coalition of local weather teams. For many banks, it was their lowest stage of oil and fuel funding because the signing of the Paris local weather settlement in 2015, however the drop additionally got here as big oil and fuel income lowered the business’s have to 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% — The present most authorized rate of interest lenders can cost, based mostly on an efficient annual rate of interest foundation that components in compounding. It really works out to 48% on an annual share charge. The federal authorities moved ahead this yr with laws that may see the speed capped at 35% on an annual share charge. The change, which additionally places new restrictions round payday loans, comes into impact Jan. 1.

This report by The Canadian Press was first revealed Dec. 29, 2024.

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2024 Bank of Canada big 6 banks boc policy rate Ian Bickis interest rates mortgage delinquency rate rbc scotiabank The Canadian Press

Final modified: December 29, 2024