A by-the-numbers look back at Canadian finance in 2024

As Canada heads into 2024, significant questions loom over whether the economy can avoid a recession and how interest rates will evolve. At the start of the year, banks were cautious, setting aside billions of dollars in anticipation of challenges for heavily-indebted consumers, many of whom were renewing mortgages at much higher rates.

However, as the year closes, it's evident that both banks and borrowers have fared better than expected. Instead of crises, the year’s biggest stories in Canadian finance have involved major deals, unexpected outcomes, and scandals at specific lenders.

Key numbers from 2024 in the Canadian financial sector are as follows:

• $58.77 billion — The adjusted profits of Canada's Big Six banks in the 2024 fiscal year, marking an increase of $1 billion from the previous year, though still slightly below the peaks of 2021-2022. Heading into 2024, concerns about mortgage defaults and borrower stress prevailed, with high interest rates affecting loan growth. However, with Canada managing a soft economic landing, banks still achieved solid profits. Growth is expected to improve in 2025, especially in the latter half, as interest rate cuts take effect.
• 3.25% — The Bank of Canada’s interest rate at year-end, down from 5% at the start of June. Following the central bank’s lead, banks lowered their prime rates to 5.45%. Further rate cuts are expected in 2025, with predictions that the central bank will reduce its key rate to 2% by July, driven by a weak economy. In contrast, the U.S. Federal Reserve only lowered its rates by 0.5%, as the U.S. economy remains stronger.
• 0.20% — The mortgage delinquency rate in Canada by the end of Q3, according to Equifax. While up from a historic low of 0.14% two years ago, it remains well below the pre-pandemic average of over 0.30%. Banks expect delinquency rates to rise next year due to potential job losses but remain confident about their mortgage portfolios.
• $4.45 billion — The amount TD Bank Group paid to settle issues related to its failures in anti-money laundering controls, which allowed criminals to launder over $965 million in illicit drug profits. In addition, TD faced restrictions on its retail asset growth. TD CEO Bharat Masrani announced his retirement, to be succeeded by Raymond Chun in the new year.
• 780,000 — The number of customers RBC gained when it completed its $13.5 billion acquisition of HSBC Canada in March. RBC also took on 4,500 employees and $108.5 billion in assets, removing a key competitor in the mortgage market. However, banks continue to face fierce rate competition.
• $246 billion — RBC’s market capitalization by the last Friday of the year, marking a nearly 30% increase in 2024. This growth, in part driven by the HSBC acquisition, placed RBC far ahead of other companies, with Shopify at around $199 billion and TD Bank Group at $133 billion, after TD saw a loss of more than 10% in value this year.
• $49 million — The amount RBC’s former CFO, Nadine Ahn, sued the bank for after she was fired over allegations of having a personal relationship with a colleague, which RBC claimed resulted in preferential treatment. Ahn maintains it was a workplace friendship, not a close personal relationship as RBC suggested. She joined Canaccord Genuity as Deputy CFO in October.
• 557,400 — The number of shares held by a Scotiabank subsidiary in Israeli defense contractor Elbit Systems, worth about $144 million at the end of the year. This was down from 2.24 million shares worth $443 million in 2023. Scotiabank faced protests over its holdings in Elbit due to its involvement in supplying weapons for the conflict in Gaza, but the bank stated that the decision to sell the shares was not influenced by the protests.
• US$104 billion — The amount Canada's five biggest banks provided in fossil fuel funding in 2023, as reported by climate groups. This represented the lowest level of oil and gas funding since the Paris climate agreement was signed in 2015, although the drop coincided with strong oil and gas profits. RBC, which topped the list with US$28.2 billion, committed to tripling its renewable energy funding to $15 billion by 2030.
• 60% — The maximum legal interest rate lenders can charge, based on the effective annual interest rate including compounding, which works out to 48% on an APR basis. The federal government has introduced new regulations to cap this rate at 35% APR starting January 1, 2025, along with new restrictions on payday loans.