Banks say their credit losses will return to pre-pandemic levels as borrowers face higher interest costs and expenses. Credit card, car loan and line of credit borrowers expected to be hit hardest.
Canada’s largest banks have set aside almost $2.5 billion to prepare for a wave of credit and loan losses as economic conditions worsen.
But Canadians are now grappling with sharply higher borrowing costs, after a year of aggressive interest-rate hikes by the central bank, and facing still-persistently high prices for food and other necessities. “We expect write offs and delinquencies to revert towards pre-pandemic levels,” said CIBC’s Chief Risk Officer Frank Guse, while executives from the other banks shared similar comments.
The country’s biggest bank set aside $532 million in PCLs for the three months ended Jan. 31, up from $105 million in the same period last year, and McKay added that the growing cost of debt will play a role in the broader economic picture.
Philippines Latest News, Philippines Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
TD follows other banks in seeing profits fall as more money set aside on rising riskTD Bank Group's profits fell in the first quarter, following what's proved to be a trend among big banks in the quarter as they set aside more money for potentially tougher economic conditions ahead.
Read more »
Oil reverses gains as traders see central banks staying hawkish - BNN BloombergOil reversed early gains after hot inflation data led traders to anticipate that central bankers are likely to stay hawkish for the coming months.
Read more »
Ukraine to rebuild war-damaged homes using money seized from Russian-controlled banksUkrainian government estimates the value of damage to civilian homes and infrastructure since the beginning of Russia’s invasion to be at US$700-billion
Read more »
'Japan Open Chain' will see three large banks test stablecoin paymentsThree major banks in Japan have announced plans to issue stablecoins on an Ethereum-compatible blockchain known as Japan Open Chain.
Read more »
RBC reports Q1 profit down from year ago, provisions for credit losses up - BNN BloombergRoyal Bank of Canada reported a first-quarter profit of $3.21 billion, down from $4.10 billion a year earlier as its provisions for credit losses increased.
Read more »
National Bank beats expectations despite higher expenses, credit loss provisionsThe National Bank of Canada beat analyst expectations despite profit falling 5% on higher expenses. Read on
Read more »