Earnings drop expected at Big 6
Toronto Star|May 22, 2024
Analysts forecast overall dip of up to 4% amid ‘mortgage renewal shock’
ANA PEREIRA
Earnings drop expected at Big 6

More than $900 billion in mortgages at Canadian banks are set to renew by 2026, with some borrowers seeing payments rise by nearly half at renewal, according to a November report by Darko Mihelic, equity analyst at RBC Capital Markets.

Canada’s largest banks are expected to report softer financial results in the second quarter, as high borrowing costs continue to burden Canadians facing debt.

Overall, earnings could drop by as much as four per cent since the same quarter last year, according to analyst forecasts.

The main drivers will likely be higher provisions for credit losses — money banks set aside to cover defaults and delinquencies — and slower loan growth, especially when it comes to mortgage lending.

Bu hikaye Toronto Star dergisinin May 22, 2024 sayısından alınmıştır.

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Bu hikaye Toronto Star dergisinin May 22, 2024 sayısından alınmıştır.

Subscribe to Magzter GOLD to access thousands of curated premium stories, and 9,000+ magazines and newspapers.