A quick update on financials in general…
More bad news is pending. Earnings have already started coming out in Canada. They’ve been disappointing. I’m short Canadian financials through the Horizons BetaPro Capped Financials Bear Plus ETF (HFD.TO).
Canadian Imperial Profit Falls on Debt Writedowns (Update1): “Canadian Imperial Bank of Commerce, the country's fifth-largest bank, said third-quarter profit fell 91 percent, missing analysts' estimates, on writedowns tied to the U.S. mortgage market.
Net income for the quarter ended July 31 was C$71 million ($68 million), or 11 cents a share, compared with profit of C$835 million, or C$2.31 a share, a year earlier, the Toronto- based bank said today in a statement. Revenue fell 36 percent to C$1.91 billion.
Canadian Imperial had C$885 million in pretax writedowns linked to the U.S. mortgage market, adding to C$6.66 billion in debt-related costs since the third quarter of 2007. The writedowns and the slowest economic growth in Canada since 1992 will probably lead to the steepest profit decline in five years for Canada's biggest banks.”
This week is a busy week…
“Bank of Nova Scotia, the No. 3 bank by assets, said yesterday that profit fell 1.9 percent to C$$1.01 billion, while Bank of Montreal, the fourth-biggest bank, said profit fell 21 percent to C$521 million.
Royal Bank of Canada, the country's largest bank, Toronto- Dominion Bank, the second-biggest lender, and No.
