The Globe and Mail reports in its Tuesday edition that Canada's biggest banks are set to release their fiscal first-quarter results starting this week, and once again the focus is on deteriorating economic conditions and slower loan growth. The Globe's David Berman writes that Royal Bank of Canada will kick things off Friday, when it reports results for the three-month period ended Jan. 31. Next week, Bank of Montreal and Bank of Nova Scotia will report their respective financial results on Tuesday, followed by National Bank of Canada on Wednesday.
CIBC and TD Bank will conclude the reporting season with their results Feb. 28.
On average, analysts are expecting profit to increase just 3 per cent for the Big Six banks, year-over-year, and a mere 1 per cent from the previous quarter.
The subdued forecast reflects dimming optimism for the Canadian economy.
Many economists believe that the Bank of Canada has put interest-rate increases on hold, at least for the first half of this year. While employment gains were strong in January, there are continuing concerns about the Canadian housing market and the energy sector, along with global uncertainty regarding trade and even the waning strength of the U.S. economy.
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