Canadian banks Scotiabank and CIBC have reported dips in their respective net incomes during the fourth quarter (third calendar quarter) of 2020, relative to the previous year.

Scotiabank suffered a setback of 19% in adjusted net income which totalled C$1.94 billion (US$1.5 billion) compared to C$2.4 billion during the fourth quarter of 2019.

However, the bank led by chief executive officer and president Brian Porter (pictured), did report an adjusted net income of C$1.94 billion compared to C$1.31 billion in the previous quarter of 2020, an increase of 48%, driven mainly by lower provision for credit losses, partially offset by lower non-interest income and higher provision for income taxes.

SRP data records 4,073 live structured products that have been issued by Scotiabank. The investments are listed both in the US and Canadian markets and are wrapped as notes, GICs, registered (unlisted) notes, and PPNs.

Popular underlyings deployed during this period include the S&P/TSX 60 Index, S&P500, Bank of Montreal, Enbridge, Eurostoxx 50, National Bank of Canada, and Rogers Communications.

Average liabilities totalled C$387 billion reflecting a jump of 22%, due to strong growth in deposits of 37%, as well as a growth in securities sold under repurchase agreements, and derivative-related liabilities.

Risk-weighted assets (RWAs) are C$417 billion compared with C$421 billion in the previous year.

CIBC, the third most active player in the country’s structured products market, experienced a 15% drop in net income from the fourth quarter of 2019 with earnings totalling C$1.01 billion from C$1.2 billion.

The bank’s divisional segments have all underperformed this quarter with the exception of capital markets which is up 19% at C$1.1 billion. Provision for credit losses was C$291m for the fourth quarter, down CAD111m or 28% from the same quarter of 2019.

SRP has over 5000 live products issued by CIBC listed in Canada, US, UK and as institutional investments. The products are wrapped as notes, GICs, registered (unlisted) notes, and PPNs.

Some underlyings are the S&P 500, Bank of Nova Scotia, Eurostoxx 50, CIBC Monthly Income Fund, and Manulife Financial. The bank’s main distributors include Merrill Lynch, Wells Fargo, Raymond James, Goldman Sachs, Jefferies, and Incapital.

CIBC ranks third on the league tables with 149 products compared with 128 in the previous year, according to SRP data. Scotiabank’s issuance has also fallen from 82 structured products in the third quarter of 2019 to 67 in the current quarter.

CIBC’s derivative instruments during the period were valued at C$30.5 billion for the year, compared with C$25 billion during the previous year.

RWAs total C$254.8 billion, reflecting an increase from a year prior when the figure stood at CAD239.8 billion.

Click to view Scotiabank and CIBC financial results.