Despite the threat of recession, loan growth will boost results for banks
On average, profits across the Big Six banks could rise 6 per cent from the previous quarter, but drop 8 per cent from the same period a year earlier, as loan loss provisions climb back up toward prepandemic levels, according to research by Keefe, Bruyette & Woods analyst Mike Rizvanovic.
“While we don’t dismiss the potential downside risk to earnings from rising PCLs as the economy weakens in a higher rate environment, we view a moderate recession as very manageable from a loan loss perspective,” Mr. Rizvanovic said in a note to clients. “Fuelled by the BoC’s ongoing rate hiking cycle, we believe that the environment continues to be supportive for net interest margins,” Barclays analyst John Aiken said in a note. “Although Canada’s real estate market continues to moderate, we anticipate mortgage volumes will stay positive, albeit at a more modest growth rate. As such, we anticipate net interest income will continue to trend higher” from levels in the fourth quarter of the previous fiscal year.
Toronto-Dominion Bank, Bank of Montreal and Royal Bank of Canada are already in the throes of some of the biggest acquisitions in the industry’s history. “A more challenging capital and regulatory environment for banks ... is something that we are very concerned about,” he said in a note.
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.
Big Brother Big Sisters of Pictou County honours Queen's Platinum Jubilee Medal recipients | SaltWireBig Brothers Big Sisters of Pictou County honoured four Queen's Platinum Jubilee Medal recipients at a ceremony at Summer Street Industries on Feb. 2. | SaltWire
Read more »
Barbara Kay: The Last of Us is a celebration of masculinity, despite clear progressive valuesThe show is a salutary reminder that in times of existential threat, it becomes clear that manliness isn’t the problem\u003B it’s the solution
Read more »
Despite soaring death rate from opioids, Alberta steers away from harm-reduction approach | CBC NewsThe United Conservative Party government has steered policy away from harm reduction and towards a model of recovery, abstinence and criminalization.
Read more »
Israel's Netanyahu advances judicial changes despite uproarIsrael's government on Monday was pressing ahead with a contentious plan to overhaul the country's legal system, despite an unprecedented uproar that has included mass protests, warnings from military and business leaders and calls for restraint by the United States.
Read more »