As we reflect on Canadian finance in 2024, the overarching questions at the beginning of the year were haunting: Could the economy sidestep recession? What direction would interest rates take? Amidst growing concerns, Canadian banks braced themselves, setting aside billions of dollars to protect against potential economic downturns, particularly as many Canadians faced the daunting reality of renewing their mortgages at significantly elevated rates.

Fast forward to the year's conclusion, it seems the outcome was more favorable than originally anticipated. The financial sector garnered attention not just for resilience, but also for remarkable deals, unexpected twists, and eye-catching scandals. Here’s an in-depth look at the pivotal figures that defined the narrative of 2024’s Canadian financial landscape:

Key Financial Figures of 2024

**$58.77 Billion**: The combined profits of Canada's Big Six banks in the 2024 fiscal year were reported at a staggering adjusted figure of $58.77 billion. This reflects a robust growth from the previous year, although still shy of the record profits seen in 2021-2022. Despite fears of mortgage defaults looming large due to high interest rates, the banks navigated these challenges deftly, marking a softer landing for the economy. Projections for 2025 indicate a return to better growth, especially in the latter half of the year, as anticipated interest rate cuts begin to take effect.

**3.25%**: By the year's end, the Bank of Canada reduced its interest rate to 3.25%, a sharp decline from 5% observed at the beginning of June. Consequently, banks reciprocated with lowered prime rates, now standing at 5.45%. More cuts are predicted for 2025; RBC analysts predict the central bank could drop rates to an astounding 2% by July, initially driven by the sluggish economy. In contrast, the U.S. Federal Reserve has only managed a minor 0.5% cut, owing to a stronger economic performance south of the border.

**0.20%**: The mortgage delinquency rate saw a slight increase to 0.20% as of the end of Q3, compared to a record low of 0.14% two years prior. While it remains lower than the pre-pandemic average of over 0.30%, banks anticipate a rise in delinquencies as potential job losses loom. Nevertheless, they express confidence in their mortgage portfolios.

**$4.45 Billion**: TD Bank Group faced a hefty $4.45 billion penalty from the U.S. government due to regulatory failings in its anti-money laundering protocols. This resulted in the laundering of over $965 million tied to illicit drug operations through its U.S. branches. Notably, TD's CEO Bharat Masrani announced plans to retire in 2025, with Raymond Chun set to take the helm amidst these challenges.

**780,000 Customers**: In a significant move, RBC completed its acquisition of HSBC Canada for $13.5 billion in March, resulting in the migration of approximately 780,000 customers, along with the onboarding of 4,500 new employees and taking on $108.5 billion in assets. Despite eliminating competition in the mortgage sector, industry experts maintain that intense competition in rates persists.

**$246 Billion**: RBC’s market capitalization reached an impressive $246 billion by year-end, marking a near 30% increase throughout 2024. This growth was bolstered by the HSBC acquisition and a gradual easing of investor concerns regarding the banking industry. RBC now sits as the largest company in Canada, far surpassing Shopify’s market value of around $199 billion and well ahead of TD Bank, which suffered a 10% decline in its market value over the year.

**$49 Million**: RBC's former CFO, Nadine Ahn, has taken legal action against the bank seeking $49 million for wrongful termination claims. Ahn asserts she was fired based on allegations regarding an "undisclosed close personal relationship" with a colleague, whom she claims received favoritism. The highly publicized legal dispute has uncovered personal details, yet Ahn maintains their relationship was purely professional. She has since joined Canaccord Genuity.

**557,400 Shares**: Scotiabank’s subsidiary was reported to have held 557,400 shares in Israeli defense contractor Elbit Systems, with a worth near US$144 million. This figure stands in stark contrast to 2023's holdings of 2,236,500 shares valued at approximately US$443 million. Scotiabank encountered public outcry concerning its investments in Elbit due to the company's involvement in arms provisions for the ongoing Gaza conflict, though it claimed the decision to sell was unaffected by protests.

**US$104 Billion**: Canada's five largest banks collectively financed approximately US$104 billion towards fossil fuels in 2023, as reported by a coalition of climate organizations. Although down from previous years, it is the lowest recording since the signing of the Paris Agreement in 2015. Notably, RBC led the pack with US$28.2 billion in funding but has pledged to triple its renewable energy investments to $15 billion by the year 2030.

**60%**: The federal government announced new regulatory measures to cap the maximum legal interest rates lenders can impose at 60%, translating to an effective annual percentage rate of 48%. These regulations, which seek to impose new restrictions on payday loans, will take effect starting January 1, 2025, significantly reshaping lending practices across the country.

In conclusion, Canadian finance in 2024 was marked by newfound resilience and surprising twists. With strategic maneuvers by major banks, evolving regulations, and market adaptations, the financial landscape is set for intriguing developments in the coming years.