Big banks poised to report strong profits as they buck economic uncertainty
Canada's largest banks are expected to report strong profits despite economic uncertainty. Analysts predict that capital markets and wealth management will support these profits, even as loan growth slows. Investor reactions will hinge on management's outlook for the second half of the year.
- ▪Canadian bank stocks have surged 16 percent this year, outperforming the S&P/TSX Composite Index's 8 percent climb.
- ▪Analysts expect provisions for credit losses to rise, indicating financial stress among consumers and businesses.
- ▪The banks will rely on stronger profits from capital markets to meet or exceed analysts' expectations.
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Open this photo in gallery:Canadian Imperial Bank of Commerce and Toronto-Dominion Bank will post their earnings on Thursday.Amanda Erickson/The Globe and MailShareSave for laterPlease log in to bookmark this story.Log InCreate Free AccountCanada’s biggest banks are set to post a round of resilient profits, bucking economic uncertainty and looming trade pressure ahead of talks to renew the USMCA.Analysts expect capital markets and wealth management activity to continue to bolster profits while loan growth slows and credit losses remain at elevated but manageable levels. Canadian bank stocks have surged 16 per cent this year on the optimism surrounding the sector’s ability to withstand economic uncertainty, outperforming the S&P/TSX Composite Index’s 8-per-cent climb.
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