The two Canadian banks have followed similar patterns over the past year, matching each other issuance.

However, Scotiabank took the lead during the second quarter of 2021 with 141 structured products with the Royal Bank of Canada (RBC) trailing behind with just 87.

Scotiabank’s structured product issuance started off strong in Q2 20 with 102 products though this figure took a hit in the third quarter of 2020, falling to 73 products. Product issuance remained stagnant in the final quarter but swiftly recovered in Q1 21 to total 106.

In Q2 21, Scotiabank rolled out an income note wrapper tied to the metals & mining sector with a strike date of 23 April 2021. The BNS Metals and Mining Callable Contingent $10.75 Coupon Notes, Series 5 has a seven-year term and is linked to an equity share basket consisting of First Quantum Materials, Freeport McMoran, Lundin Mining and Teck Resources.

RBC’s product issuance remained steady, barely deviating until the second quarter of 2021, while the bank rounded off Q2 20 with a total of 107 structured products.

RBC’s most recently issued product is the growth note RBC Phoenix Autocallable Accumulator Securities (CHF), Series 9P, F-Class.

Featuring a strike date of 30 April 2021, the investment will reach maturity in five years and is linked to the insurance and telecommunications sectors. Underlyings include Zurich Insurance Group, Swiss Life, Swiss Re, and Swisscom.

SRP data shows that Bank of Montreal issued the highest number of products (340) during the second quarter of 2021 in the Canadian structured products market, followed by National Bank of Canada with 284, and CIBC with 234 products rounding up the top three ranking issuer groups on the tables. 

This can be compared with Q2 20 when Desjardins Group ranked third instead of CIBC with 193 structured products while Toronto Dominion Bank followed with 157 products.

RBC reported a net income of CAD4 billion (US$3.32 billion) for the second quarter of 2021, reflecting an increase of CAD2.5 billion from the prior year.

Pre-provision, pre-tax earnings of CAD5.1 billion were up 11% from a year ago, due to constructive markets and strong volume growth, partially offset by the impact of low interest rates.

Compared to the last quarter, net income soared by CAD168m with higher results in personal & commercial banking, wealth management and capital markets. These results were partially offset by lower earnings in insurance and investor and treasury services.

Scotiabank reported a second quarter net income of CAD2.5 billion compared to CAD1.3 billion in the same period last year.

The bank led by Brian Porter (pictured) reported an adjusted net income increase of 81% to CAD2.46 billion, while EPS of CAD1.90 soared by 83% compared to the prior year. Return on equity was 14.9% compared to 8.2% a year ago.

Global banking and markets raked in earnings of CAD517m, driven by continued solid performance in the capital markets business, particularly equities, and lower provision for credit losses.

Canadian banking generated earnings of CAD931m with a strong rebound in fee income, lower provision for credit losses, as well as solid asset and deposit growth.

Global wealth management’s earnings stand a CAD378m were supported by strong revenue growth, positive operating leverage for the sixth consecutive quarter, and strong net sales. AUM and AUA increased 19% and 20% from the prior year, respectively.

Click to view RBC and Scotiabank's Q2 21 earnings results.