CIBC is kicking off Canadian bank earnings season with a beat, albeit a somewhat muted one. Adjusted earnings per share came in at $1.94 (against an estimate of $1.72), but it’s a somewhat muddy quarter, all things considered. Net income was down 77 per cent, mostly due to that previously-disclosed US$770 million provision tied to a settlement with Cerberus over an investment product that dates back to the financial crisis. To get back to the bread and butter, revenue at the Canadian personal and business banking unit rose 3.5 per cent in the quarter, and the capital markets division was a source of strength, with revenue up 14 per cent from a year ago. Worth noting, provisions for credit losses – cash set aside for potentially sour loans – rose $295 million in the quarter, though that was below average estimates for $345 million.

TSX LOSING STREAK HITS FIVE DAYS

Sort of an inauspicious run for Toronto’s benchmark stock exchange – five straight sessions of losses, though those have abated to some degree (yesterday, it was incremental – down all of five points.) Still, the two per cent and change selloff hasn’t spared many souls – 185 of the benchmark’s 236 constituents are lower over the course of those five sessions, and the damage is clearly in those rate-sensitive tech names. To wit, Shopify is the lead laggard, down the better part of 20 per cent over that stretch (not far behind – Lightspeed Commerce, down 13 per cent.)

WHAT’S A BIT OF LIGHT MORTGAGE FRAUD AMONG FRIENDS?

Admittedly, I’m being a bit glib, but that’s what’s reflected in the latest survey data done on behalf of BNNBloomberg and RATESDOTCA by Leger. Forty-seven per cent of respondents to the poll say they reckon mortgage fraud is common, and things get a bit hairier when it comes to those who think it’s OK to inflate their income on a mortgage application in order to secure funding – 17 per cent think that’s acceptable. Worth noting it’s mostly among men under the age of 35 – generally your risk-taking demographic. In any case, it’s another sign of the stress people are feeling in the housing market – RBC figures it takes almost 63 per cent of an average household income to cover the costs of housing, with that figure nearing 100 per cent in Toronto and Vancouver, the nation’s priciest markets. There are further implications to this when it comes to economic output – every dollar spent on housing, which is sort of non-productive capital, is a dollar not spent on discretionary spending, which does contribute to economic growth and employment. Anyhow, a housing sink is bad for overall growth, but I digress.

SOME PROGRESS AT CENTERRA’S TURKIYE MINE

It’s been an admittedly tough couple years for Centerra, but there’s some signs of life for the company getting its second-most-important project back in business. The miner says it’s making steady progress in getting the Öksüt mine back to operational status – that op has been offline since last year due to a mercury leaching problem, leaving the company leaning on its Canadian Mount Milligan mine for the bulk of production. Now, Centerra’s an interesting case (especially in light of First Quantum’s fight with Panama) in terms of resource nationalism – Centerra lost its Kumtor mine in Kyrgyzstan last year, which has knocked off a decent portion of its production and  proven and probable reserves.

OTHER NOTABLE STORIES

  • Revenue over at Jamieson Wellness increased nearly 50 per cent in it most recent quarter, as demand for flu and cold remedies drove results.
  • Today marks the one-year anniversary of the Russian invasion of Ukraine, which has roiled energy and agricultural markets.
  • Shares of Beyond Meat are rallying in the premarket – up about 12 per cent – after the company reported a smaller-than-expected loss in its latest quarter.

NOTABLE RELEASES/EVENTS

  • Notable data: Ottawa’s Fiscal Monitor, U.S. Personal Income & Consumption, U.S. New Home Sales, University of Michigan Consumer Sentiment Index
  • Notable earnings: CIBC, Monster Beverage, Lion Electric, NexGen Energy
  • G20 Finance Ministers and Central Bank Governors Meeting in Bengaluru, India (Feb. 23-25)