19:32:09 EDT Tue 22 Oct 2019
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Bank of Nova Scotia
Symbol C : BNS
Shares Issued 1,225,651,360
Close 2019-03-27 C$ 70.78
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FP says investors increasingly skeptical of Big 6 banks

2019-03-28 09:22 ET - In the News

See In the News (C-BMO) Bank of Montreal

The Financial Post reports in its Thursday edition that concerns about potential loan losses and the housing market have led to a new round of skepticism about Canada's Big Six banks. The Post's Geoff Zochodne writes that Veritas Investment Research, which has sell ratings on all of the big banks, is the latest to raise the possibility that the lenders could be vulnerable to increased loan losses. In a summary of the report Veritas analyst Nigel d'Souza wrote that the Big Six had reported "underwhelming earnings" for the first quarter of their fiscal 2019 that were marked by slowing consumer loan growth, a weaker showing from their capital-markets business and increased loan losses due to hits in the commercial-credit portfolio. "Investors should reduce exposure to Canadian banks ahead of an acceleration of credit losses," Mr. d'Souza added. The report came a week after Steve Eisman, the Neuberger Berman portfolio manager made famous by the book The Big Short, reiterated concerns about the Canadian economy. Mr. Eisman had taken note of increased loan loss provisions in the first quarter at many of the banks and that he said he was "calling for a simple normalization of credit that hasn't happened in 20 years."

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