Banks

Juicy profits for the banks

Executive salaries and profits were juicy in Canadian financial institutions in 2021, while discounts and relief offered to customers became rarer last year than during the first months of the pandemic, particularly on the side insurance divisions.

Over the past year, several financial groups have posted record results, such as Desjardins and the National Bank (BN). Only the Laurentian Bank saw its earnings melt away like snow in the sun.

Together, BN, Laurentian Bank, Royal Bank, Bank of Montreal, TD Bank, Scotiabank, CIBC and Desjardins Group made profits of $60.68 billion in 2021.

This represents a jump of 39% or approximately $17 billion compared to the previous vintage which was also marked by the pandemic.

It was the Royal Bank that took the biggest profits with a harvest in its coffers of $16.05 billion. It is followed by TD Bank ($14.3 billion) and Scotiabank ($9.95 billion).

The Bank of Montreal made a profit of $7.75 billion, the CIBC of $6.45 billion and the National Bank of $3.18 billion. Only the Laurentian Bank recorded a decline to reach $57.08 million.

At Desjardins, management recently revealed that it had achieved surplus earnings before patronage refunds of $2.94 billion, unheard of in its history. This is a jump of $523 million over the previous year.

Despite a decrease in claims, the cooperative has not offered relief on the insurance contracts of its members as in 2021 and no other similar measure is planned for this year.

In 2020, approximately $155 million had been returned to members through various reliefs, in particular based on mileage for cars.

Listen to Michel Girard’s economic column on QUB radio:


If we now look at the salaries of financial institutions in the country, the CEOs of the eight financial groups named above shared $88.87 million, compared to $71.52 million in 2020.

The boss of the Royal Bank of Canada, Dave McKay, is the one who received the largest check with an amount of $ 16.67 million. In 2and and 3and positions, we find Darryl White of the Bank of Montreal ($14.87 million) and Bharat Masrani of the TD Bank ($13.49 million).

Profits of major financial institutions in 2021

Bank royal: $16.05 billion (+40%)

TD Bank: $14.3 billion (+20%)

Bank from Montreal : $7.75 billion (+52%)

Bank Scotland : $9.95 billion (+45%)

CIBC: $6.45 billion (+68%)

Bank National : $3.18 billion (+53%)

Movement Gardens (surpluses before refunds) : $2.94 billion (+22%)

Bank Laurentian: $57.08 million (-50%)

Source: annual reports of the banks and the Desjardins cooperative

Big boss salaries

David McKay | Royal Bank: $16.67 million (+23.7%)

Daryl White | Bank of Montreal: $14.87 million (+34%)

Bharat Masrani | TD Bank: $13.49 million (+28%)

Rania Llewellyn | Laurentian Bank: $3.88 million (+29.18%)

Guy Cormier | Desjardins Group: $4.37 million (+37%)

Louis Vachon (left in October) | National Bank : $10.66 million (+27.8%)

Brian Porter | Scotiabank: $12.18 million (-0.35%)

Victor Dodig | CIBC: $12.75 million (31.8%)

Source: circulars from financial institutions

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