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March 28, 2021

Canada's banking biz soars, America's flounders: report

For the longest time Canadians have heard about the fiscal restraint of their national banks, and how thanks to even-keeled regulation and good, old-fashioned Canuck sense, we were able to weather the recession far greater than much of the world.

Well, to most of us that’s a great sentiment, but when unemployment and real estate prices stay high, hearing as much no longer makes us sleep better at night.

Though perhaps the fruits of Canada’s conservative banking biz are finally starting to show.

According to a recent report from Bloomberg data, Canada’s banking sector is booming – in both profits and employment – while its American counterpart flounders.

By numbers from Bloomberg, Canadian banks are enjoying a great rebound to prominence following the recession. It’s been a while, but the largest institutions in the country have returned to pre-2008 health quite nicely.

*Bing: What is the average banker salary in Canada?

Bloomberg reports that of every one worker hired by the eight largest lenders in Canada over the most recent quarter, three were let go by their counterpart banks in the U.S.

That adds up to 2,800 new workers in Canada’s biggest banks, compared to 8,577 lost at the biggest American ones.

Further, though, is what those Canadian bank workers are doing. At a time when efficiency and productivity are the keywords that preface hiring or firing, employees at Canadian lenders are bringing in profit by the boatload.

For every 1,000 bank employees at Canada’s largest eight banks, they brought in $19.13 million in profit during the latest quarter. That’s 31 per cent higher than what those same employees brought in in the U.S.: just $14.7 million.

“It’s a reflection of the underlying strength and resiliency of the banking industry in Canada, particularly when compared to the situation in other jurisdictions,” Terry Campbell, president and CEO of the Canadian Bankers Association, told the Financial Post.

By Jason Buckland, MSN Money



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Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...