Barlow’s Research Roundup: Bank earnings preview, top picks from a BMO analyst
BMO bank analyst Sohrab Movahedi provided insights on upcoming bank earnings, highlighting strong revenue growth despite challenges. TD's chief economist Beata Caranci pointed to high taxes as a factor in Canada's brain drain, affecting talent retention. Meanwhile, Morgan Stanley's Amy Gower expressed optimism about nickel prices due to tightening market conditions and increasing demand from battery production.
- ▪BMO forecasts a 19 percent year-over-year growth in cash operating EPS for Canadian banks.
- ▪TD's chief economist believes high personal taxes are driving top talent away from Canada.
- ▪Morgan Stanley reports that nickel prices are expected to rise due to production cuts and increased demand from batteries.
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ShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountDaily roundup of research and analysis from The Globe and Mail’s market strategist Scott BarlowRoyal, TD and CIBC preferredBMO bank analyst Sohrab Movahedi provided a preview of imminent bank earnings reports,“Q2/26 earnings kicks off Wednesday with BNS (see preview here). We expect the benefits of the Canadian banks’ diversified business models will be on display again this quarter, with continued revenue tailwinds (NIM [net interest margin] and fee-revenue growth) balanced by muted loan growth and ongoing trade/geopolitical uncertainty; we forecast lower PCLs year-over-year (but remaining above through-the-cycle averages), reflecting large preemptive performing reserve builds last year.
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