Wednesday, March 23, 2016

Diversification of Canadian Banks – Take Two

Last week, I posted an article that took a deep dive on the geographical diversification of the Big Five Canadian banks – Royal Bank of Canada (RY), Toronto-Dominion Bank (TD), Bank of Nova Scotia (BNS), Bank of Montreal (BMO) and Canadian Imperial Bank of Commerce (CM). The article can be found here.

In that article, I presented data for geographical revenue diversification of the banks – and presented 10-year trend charts.

Revenue provides only part of the story, and I decided to continue digging and pull the earnings numbers as well. Unfortunately, the earnings presented in the annual reports are broken down by segment and not geographical regions, so there is no apple-to-apple comparison to see which geography is earning the most. However, looking at the segment breakdown can also provide some insight on which direction a bank is headed.

For the sake of completeness, I am also including the charts for geographical revenue diversification in addition to the earnings-by-segment charts. Enjoy.

Royal Bank of Canada (RY)

image (2)
image (3)

Toronto-Dominion Bank (TD)

image (4)
image (7)

Bank of Nova Scotia (BNS)

image (8)
image (9)

Bank of Montreal (BMO)

image (10)
image (11)

Canadian Imperial Bank of Commerce (CM)

image (12)
image (13)


The fiscal year for the Big Five Canadian banks ends in October. With the end of the year, and a delay of a few weeks, companies release their annual reports which give investors a clear picture of the overall operations with breakdown in revenue and earnings. This is vital information for long term investors and provides visibility into the operations.

Management may say one thing or another, but the numbers always speak for themselves — and confirms whether management is executing the path that is paved by the ideas generated in order to look for stability and growth. This article takes a close look at the state of affairs of the Big Five Canadian banks and their geographical revenue diversification and segment earnings diversification.

This article was written by Roadmap2Retire. If you enjoyed this article, please consider subscribing to my feed at


Post a Comment

Recent Posts From DIV-Net Members