02:35 PM EDT, 05/02/2024 (MT Newswires) -- Quarterly financial filings with the Fed (Call Reports) by Canadian banks with U.S. subsidiaries have just become available.

National Bank highlights the following takeaways:

BMO, CIBC and TD reported a similar decline in NIM (down 4-5 bps Q/Q). RBC recorded the most significant decline in NIM (down 11 bps Q/Q), with interest income falling 3% Q/Q and deposit costs increasing 2% Q/Q.

TD and CIBC saw sequential loan growth of 1% Q/Q and 2% Q/Q (mainly driven by its commercial loan portfolios), while loan growth was down 1% Q/Q for BMO and RBC. TD's 1% growth was led by commercial (+2% Q/Q), which offset a seasonal decline in card loans (down 6% Q/Q).

TD reported a US$450 million regulatory provision. The FDIC has also assessed an additional charge related to last year's bank crisis, estimated at roughly 15% of last quarter's figure (~mid-single-digit impact on NIX). Banks are expected to treat these items as "one-time" expenses.

CIBC's results included the largest sequential change in provisioning rate, at 27 bps Q/Q. Analyst Gabriel Dechaine attributes this performance largely to CECL volatility. In terms of non-accrual loans, BMO and TD reported a ~20% increase in this line item, while CIBC saw a 36% increase due to a doubling in C&I non-accrual loans.

Excluding the AOCI "opt-out", all U.S. operations of Canadian banks have CET 1 and leverage ratios solidly above current regulatory minimums of ~7-8% and ~4%, respectively. Additionally, all banks saw a significant Q/Q improvement in pro forma CET 1 ratios and were up on average ~40 bps Q/Q led by TD (up 80 bps) and RBC (up 60 bps).

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