The Big Six have collectively allocated about
When compared with prior quarters, those coffers grew fivefold to what were record-breaking levels for some, as banks raced to reserve money to counteract the effects of the pandemic and a plunge in oil prices.
"We went through tremendous headwinds...as we absorbed a substantial increase in provisions for performing loans as well as market pressure from the steep drop in interest rates," said
"A tough quarter, no question."
Shareholders learned that TD's provisions for credit losses soared to nearly
"This is not a garden-variety recession...We've never been through this before," Scotiabank chief executive
"We're cautious here. This is not a one-quarter or two-quarter event. The banking sector will be picking up broken eggshells for a number of quarters here."
"We would describe the current environment as going where no one has gone before," he said the same day as Porter made his remarks.
"The episode is not over. So we're still watching for the Klingons....We're not out of this crisis yet."
All of the banks saw their profits plummet significantly as they rushed to allow staff to work from home where possible, outfitted branches to help stop the spread of COVID-19 and offered loan deferrals and payment abatements to customers.
RBC, TD, CIBC and BMO missed analyst expectations, while Scotiabank and National beat them.
Many saw spikes in traffic at their digital subsidiaries and online offerings and boasted about how investments in technology and innovation were paying off.
For some, including TD and RBC, those investments and traffic were enough for them to vow not to reduce their workforces this year because of the crisis, but no bank has made those assurances for 2021 or beyond.
They are focused for now on trying to predict how much government relief and a slow return to work will shape a new economy and their outlooks.
Some analysts believe the brunt of the pandemic will be felt in the year's later quarters, when provisions in credit losses could climb even further.
The banks are keeping a close eye on those trends, but many are already seeing requests for loan and payment relief slow, giving them some hope.
CIBC chief executive
"Economic headwinds are likely to be here for the near term," he said on CIBC's Thursday call.
"While there are many unknowns related to the pandemic, its effect on the economy and the path to recovery, what is certain is our strong capital liquidity will allow us to withstand ongoing stress."
This report by
Companies in this story: (TSX:CM, TSX:RY, TSX:TD, TSX:BNS, TSX:NA, TSX:BMO)
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