Skip to Main Content
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
Client Login
  • Home
  • Our Team
  • Commentary
    • Blog
    • Video
    • Market insights
  • Services
    • Our solutions
    • Advisor Managed Account
    • Community
  • Commonly asked questions
  • Contact us
  • CIBC.com
  • CIBC Private Wealth
  • CIBC Websites
  • Client Login
 CIBC Private Wealth, Wood Gundy  CIBC Private Wealth, Wood Gundy

Cacic Wealth Management

  • Home
  • Our Team
  • Commentary
    • Blog
    • Video
    • Market insights
  • Services
    • Our solutions
    • Advisor Managed Account
    • Community
  • Commonly asked questions
  • Contact us

Blog

Address 500 Centre Street SE 27th Floor Calgary AB, T2G 1A6
Telephone Number (403) 508-3230
Email Email us
Email Email
Telephone Number Tel

Milan Cacic

September 22, 2023

Social media Economy Professionals In the news News Weekly update Weekly commentary
Facebook
LinkedIn
Twitter

CANADIAN BANKS; TWO LONG YEARS!

Over the last two years, Canadian banks have performed poorly [see chart below]. To be fair, they've had to deal with the fastest interest rate hike in history, which has caused mortgage rates to increase dramatically, forcing the banks to increase loan-loss provisions. Impressively, the banks have been able to maintain a fairly stable earnings-per-share ratio while revenues have slowed and loan-loss provisions have risen. For the most part this has been done this by cutting costs.

 

Graph 1

Source: Thompson One(T.XBA)

 

At the end of August, the Canadian banks find themselves in a very unfamiliar position, valued lower today than they were two years prior. The question we ask ourselves is does this create a buying opportunity? As always, the best way to answer that question is to look at what has happened historically.

 

Graph 2

 

If we look at the chart above, we can see that there's been 22 instances where Canadian banks have had negative rolling two-year returns out of 232 month-end periods since May 2004. What's even more interesting is that Canadian banks posted a positive one-year return in the year following for 21 of those 22 instances. Now, an argument can be made that this bank downturn is much different than the financial crisis or the Covid pandemic, however, history doesn't care. Historically speaking, we think Canadian banks offer a buying opportunity, not to mention a pretty good yield!

 

I've also included a piece from our CIBC Economics team entitled "Asl Not What the Fed Can do for you".

 

As always, if you have any questions, please feel free to give us a call at any time.

 

Have a great weekend.

 

Milan

 

Related posts

Milan Cacic

July 18, 2025

COULD THE TARIFFS ACTUALLY BE WORKING?

Read more

Milan Cacic

July 11, 2025

CHAPS, CHARTS, AND CHARGING BULLS

Read more
 
 
  • Rates
  • FAQ
  • Agreements
  • Trademarks & Disclaimers
  • Privacy & Security
  • CIRO AdvisorReport
  • Accessibility at CIBC
  • Manage Cookie Preferences
  • Cookie Policy
 Canadian Investment Regulatory Organization  Canadian Investor Protection Fund

CIBC Private Wealth” consists of services provided by CIBC and certain of its subsidiaries through CIBC Private Banking; CIBC Private Investment Counsel, a division of CIBC Asset Management Inc. (“CAM”); CIBC Trust Corporation; and CIBC Wood Gundy, a division of CIBC World Markets Inc. (“WMI”). CIBC Private Banking provides solutions from CIBC Investor Services Inc. (“ISI”), CAM and credit products. CIBC Private Wealth services are available to qualified individuals. Insurance services are only available through CIBC Wood Gundy Financial Services Inc. In Quebec, insurance services are only available through CIBC Wood Gundy Financial Services (Quebec) Inc.


CIBC Private Wealth services are available to qualified individuals. The CIBC logo and “CIBC Private Wealth” are trademarks of CIBC, used under license.