Canadian banks are set to reveal how they're faring in the lead up to a possible recession as they report quarterly earnings this week.
As central banks raise interest rates to slow inflation, economic fears have held bank stocks back compared with the overall market, so analysts will be looking to see how well set up the sector is before an expected slowdown next year.Starting with Scotiabank reporting on Tuesday, the results will cover the three months ending Oct. 31. During that period, the Bank of Canada raised its key interest rate twice, bringing its key interest rate to 3.75 per cent.
Rising interest rates have been a major source of pressure for equities, though November has so far shown good gains. Interest rates have also slowed the real estate market and mortgage demand, with home sales down 36 per cent in October compared with a year earlier, but banks have also been able to profit from those rising rates as shown by their net interest margins.
The financial buffers started creeping up last quarter after an extended stretch of banks winding down what they built up during the early part of the pandemic. While they will likely go up further this quarter, it's not a sign of concerns in credit conditions, which remain"pristine," said Grauman. Given this is the last quarter of the year, analysts will also be pushing to see how banks see these key trends performing next year, said RBC analyst Darko Mihelic in a note.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The Week Ahead: Big six bank earnings; GDP data due - BNN BloombergA look at what investors will be watching in the upcoming week.
Read more »
U.S. equities drop on protests in China, oil plunges - BNN BloombergShares slid and oil tumbled as growing unrest in China over COVID restrictions sent a shiver through global markets.
Read more »
Oil plunges to lowest since 2021 as China unrest rattles market - BNN BloombergOil tumbled to the lowest level since December as a wave of unrest in China punished risk assets and clouded the outlook for energy demand, adding to the stresses in an already-volatile global crude market.
Read more »
Canadian banks to provide financial update in Q4 results ahead of possible recession - National | Globalnews.caCanadian banks are set to reveal how they're faring in the lead up to a possible recession as they report quarterly earnings this week.
Read more »
Western Canada: B.C. banks on big spending as it announces $5-billion surplusThe B.C. government is looking to ensure it spends the largesse, rather than allow the fiscal year to pass with a surplus
Read more »
PBP - BKFC Newcastle: Terrill vs. Banks, Sat. 11/26, 2 PM ET/11 AM PT PBP Discussion ThreadCome join the Sherdog Forum community as we discuss the action and excitement of BKFCNewcastle, headlined by a heavyweight banger between Mick Terrill and Steven Banks, live at 2 p.m. ET/11 a.m. PT!
Read more »