Banks to report second-quarter results as credit concerns persist
BNN Bloomberg
While there’s still room for surprises, Canadian banks are set to report results after a second quarter that was notable for its economic steadiness.
The quarter marked a sharp contrast from a year earlier, when bank failures in the U.S. and Switzerland created worries of contagion. At the same time, the possibility of an economic hard landing loomed as central banks worked to tame inflation through higher interest rates.
By comparison, the latest quarter was fairly tame — despite the high-profile issues at TD Bank Group related to money-laundering controls — with encouraging data on the economic front for inflation and still historically low levels of mortgage delinquencies.
Just this week, Statistics Canada reported inflation fell to 2.7 per cent in April, down from 2.9 per cent in March, which boosted financial market odds of a June rate cut above 50 per cent.
