Canada\u0027s big five banks set aside the most money for loan losses since 2020 on mounting worries about commercial real estate. Read on.
Royal Bank of Canada said its allowance for CRE credit losses had doubled compared with pre-pandemic levels, and TD Bank said its CRE reserves were 2.5 times higher than they were before the pandemic.
“From a credit-quality perspective, the residential mortgages on Canadian banks’ books are very solid, and pretty recession proof,” said John Aiken, Barclays’ head of research in Canada. “The high loan-to-value mortgages — the ones theoretically at risk — are insured, and so the banks are basically bulletproof on that.”Article content
For the Bank of Montreal and TD, which have substantial U.S. businesses, their weaker than expected results were tied to U.S. expansion plans. Integration costs from BMO’s purchase of California’s Bank of the West weighed on its earnings, and 92 per cent of its provisions on performing loans were inherited from the deal, pointing to greater credit risks south of the border. Meanwhile, TD cut its profit outlook, partly because of charges from its failed effort to buy U.S.
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Canada's big banks log 13-fold rise in loan loss provisions on worries about commercial real estate defaultsCanada\u0027s big five banks set aside the most money for loan losses since 2020 on mounting worries about commercial real estate. Read on.
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Posthaste: These Canadian regions are headed for 'city-cessions' — a sign Canada may not be far behindWhile Canada\u0027s economy has yet to dip into recession, new data suggest that many major cities are heading into \u0022city\u002Dcessions.\u0022 Read more
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Posthaste: These Canadian regions are headed for 'city-cessions' — a sign Canada may not be far behindWhile Canada\u0027s economy has yet to dip into recession, new data suggest that many major cities are heading into \u0022city\u002Dcessions.\u0022 Read more
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Posthaste: These Canadian regions are headed for 'city-cessions' — a sign Canada may not be far behindWhile Canada\u0027s economy has yet to dip into recession, new data suggest that many major cities are heading into \u0022city\u002Dcessions.\u0022 Read more
Lire la suite »
Posthaste: These Canadian regions are headed for 'city-cessions' — a sign Canada may not be far behindWhile Canada\u0027s economy has yet to dip into recession, new data suggest that many major cities are heading into \u0022city\u002Dcessions.\u0022 Read more
Lire la suite »
Posthaste: These Canadian regions are headed for 'city-cessions' — a sign Canada may not be far behindWhile Canada\u0027s economy has yet to dip into recession, new data suggest that many major cities are heading into \u0022city\u002Dcessions.\u0022 Read more
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