Canadian banks faced a difficult quarter ahead of earnings releases: RBC
BNN Bloomberg
As Canadian banks get set to report quarterly results next week, analysts at RBC Capital Markets are predicting a challenging quarter for many of the nation’s major lenders, saying the “macroeconomic outlook has become more uncertain.”
In a report released Wednesday, analysts at RBC Capital Markets lowered core earnings per share estimates on five major banks by an average of around three per cent. The group of lenders will begin reporting second-quarter results on May 24 with Bank of Montreal and Bank of Nova Scotia .
The analysts lowered second-quarter core earnings per share estimates for BMO by 5.8 per cent, Bank of Nova Scotia by four per cent, Canadian Imperial Bank of Commerce by 1.1 per cent and Toronto-Dominion Bank by 2.8 per cent. For National Bank, second-quarter core earnings per share estimates were flat.
“Our reduced expectations mostly reflect higher stage two PCLs [provision for credit losses] than we previously assumed, as the macroeconomic outlook has become more uncertain. We also lower our expectations for capital markets,” the report said.
