TORONTO, May 21 (Reuters) – Canadian banks are expected to set aside money for challenging days, which will hurt quarterly earnings, as investors await commentary on how the lenders will navigate a prolonged high interest-rate environment that has dented credit growth.
The big six banks, which control about 90% of the total banking assets in the country, are expected to report this month a quarterly profit decline between 1% and 8%, driven by high provisions for bad loans. The exception is Canada’s No. 1 bank, Royal Bank of Canada (RY.TO), opens new tab, whose recent acquisition of HSBC’s (HSBA.L), opens new tab domestic unit is expected to benefit the bank.
Source: REUTER
