WRAPUP 2-TD Bank, CIBC shares fall after posting soft results

Thu Dec 4, 2014 4:15pm EST
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(Adds comments from TD Bank CEO on 2015 targets)

By Jeffrey Hodgson

TORONTO Dec 4 (Reuters) - Shares of Toronto-Dominion Bank and Canadian Imperial Bank of Commerce slid on Thursday after posting soft results in what is shaping up to be a disappointing fourth-quarter earnings season for Canadian lenders.

TD Bank reported a weaker-than-expected profit, even as its revenue and earnings rose, and said it expects a more challenging operating environment in 2015.

And CIBC said its profit fell from a year earlier, hurt by the loss of some credit card revenue and softer results at its wholesale banking division.

TD shares fell 5 percent to C$54.03 in Toronto, while CIBC shares dropped 3.4 percent to C$103.52.

"We would find it hard to describe (TD's) fourth quarter earnings release as anything but surprisingly disappointing," Barclays Capital analyst John Aiken said in a research note.

Canadian bank stocks also took a hit on Tuesday when Bank of Montreal posted a weaker-than-expected profit. Royal Bank of Canada results on Wednesday were seen as roughly in line.

TD, Canada's second-largest lender, said its net income rose to C$1.75 billion ($1.54 billion), or 91 Canadian cents per share, in the fourth quarter ended Oct. 31, from C$1.62 billion, or 84 Canadian cents a share, a year earlier.   Continued...