Bankers buck gloomy trend by forecasting growth amid concerns about economic slowdown

2022-05-26 2:00:00 AM
Bankers buck gloomy trend by forecasting growth amid concerns about economic slowdown

Bankers buck gloomy trend by forecasting growth amid concerns about economic slowdown

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Bank ers buck gloomy trend by forecasting growth amid concerns about economic slowdown

Bank of Nova Scotia and Bank of Montreal both reported higher second-quarter profits on Wednesday, underpinned by robust demand for personal and commercial loans as well as lower loan loss reserves than analysts anticipated

“All in all our clients are telling us that they’re still interested in investing in their businesses,” said Mr. Tuzun. He added that there are “a lot of good indicators for what’s to come” for the bank.Chris Young/The Canadian PressBankers aren’t blind to the gathering economic storm clouds. BMO chief risk officer Pat Cronin said his bank is giving greater weight to a hypothetical scenario that predicts the impact of a severe downturn, and has lowered expectations for parts of its forecast it considers the base case.

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They see record profits, yet there's massive inflation. 🤔🤔🤔 Sure…. BS…

Bank of Nova Scotia’s second-quarter profit tops estimatesIn its latest quarter, Scotibank reported earnings per share excluding one-time items of $2.18. Analysts had been forecasting $1.96 per share

Bank of Montreal beats second-quarter profit estimates

Bank of Montreal beats second-quarter profit estimatesExcluding one-time items, BMO reported earnings per share of $3.23 in the latest quarter, exceeding analysts’ forecasts of $3.21 No comments theJagmeetSingh ?! Second article about a bank making record profits. And I can no longer afford the name brand cheese slices I prefer. Sounds fair.

Palestinian teen shot dead in Israeli raid on West BankHealth authorities said a 16-year-old Palestinian died early Wednesday after being wounded during clashes with Israeli forces in the occupied West Bank , the latest in a wave of violence that has persisted for months.

Big bank earnings this week will offer clues to how businesses are weathering inflation | CBC News

Big bank earnings this week will offer clues to how businesses are weathering inflation | CBC NewsCanada's banks are gearing up to release their latest quarterly results amid a volatile backdrop and analysts are expecting tempered results as they navigate soaring inflation, rising interest rates, housing risks and a stock market sell-off. I will take a wild guess. 🤔 Record profits for the banks again? Bitcoin fixes this if u want the world economy to soar get rid of banks let the governments set criteria so that it costs less to live and inovate

Bank of Montreal raises dividend, posts profit gain on higher retail banking revenue

Bank of Montreal raises dividend, posts profit gain on higher retail banking revenueAdjusted to exclude one-time items, BMO ’s profit was $2.187-billion, or $3.23 per share in the latest quarter Yup! “Higher retail banking revenue” in a pandemic… how much of that gain was from “user fees”? Al Jumah blessing to All. topics on sustenance and Provisions for All Humankind......

Posthaste: Stop hiking interest rates! Canadians want Bank of Canada to press pause amid deep financial worries

Posthaste: Stop hiking interest rates! Canadians want Bank of Canada to press pause amid deep financial worriesConservative voters more likely to want interest rates to drop, survey suggests Lol HedgeyeDJ Lol they don’t know how it works do they Everyone saw this coming. Inflation needs to come down and there is one way to do it.

heading for a period of stagflation – a mix of slow growth and high inflation.Create Free Account Bank of Nova Scotia beat analysts’ estimates for quarterly profit on Wednesday, helped by continued declines in loan-loss provisions and higher revenues from its Canadian banking and international business.Create Free Account Bank of Montreal beat analysts’ estimates for quarterly profit on Wednesday, on higher interest income and lower credit-loss provisions offsetting rising expenses and lower wealth management and capital markets earnings.The Palestinian health ministry said Ghaith Yamin was wounded by a gunshot to the head and died at a hospital.

Yet increases in banks’ loan balances have been broad-based, and BMO chief financial officer Tayfun Tuzun said in an interview that he still expects “high-single-digit loan growth” year over year – the same guidance he gave three months ago. “All in all our clients are telling us that they’re still interested in investing in their businesses,” said Mr.77 billion, or $2. Tuzun.23, in the three months ended April 30, from $2. He added that there are “a lot of good indicators for what’s to come” for the bank.48 billion, or $1. A particular bright spot is commercial lending in Canada, where loan balances rose 13 per cent at BMO and 19 per cent at Scotiabank in the second quarter. The police and Shin Bet security services said in a statement that five Palestinian men from east Jerusalem had been arrested for allegedly planning a shooting attack against far-right lawmaker Itamar Ben-Gvir and other targets at a time of heightened tensions in the flashpoint city.

Scotiabank’s chief financial officer, Raj Viswanthan, said corporate clients and consumers have “very strong” balance sheets at the moment, “so we see a lot of pent up demand. Analysts had expected $1. Analysts had expected $3.” Mortgage balances rose 16 per cent year over year at Scotiabank, benefitting from the tail end of a red-hot streak for housing markets. Chris Young/The Canadian Press COVID-19 and war in Ukraine have also increased demand in key areas, Mr. Canada’s third-largest lender reported overall net profit of $2. Viswanathan said.76 billion, or $7. “It’s supply chain issues, it’s the rise of e-commerce, it’s the demand for food.16 a share, up from $2. The statement did not say how close they came to carrying out the plot.

” Bankers aren’t blind to the gathering economic storm clouds. BMO chief risk officer Pat Cronin said his bank is giving greater weight to a hypothetical scenario that predicts the impact of a severe downturn, and has lowered expectations for parts of its forecast it considers the base case.88, a year ago.91, a year ago. When U.S. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. banking giant JPMorgan Chase & Co.. The march is meant to celebrate Israel’s capture of east Jerusalem in the 1967 Mideast war.

hosted an investor day this week, chief executive Jamie Dimon summed up the outlook as, “strong economy, big storm clouds,” saying those clouds “may dissipate. If it was a hurricane, I would tell you that.” But he acknowledged “they may not dissipate, so we’re not wishful thinkers.” The Bank of Canada published a paper this month that suggests the country’s banks are strong enough and well capitalized to withstand even a severe, prolonged downturn in which unemployment peaks at 13.5 per cent and house prices fall 29 per cent. Any conclusive answer is likely to prove elusive due to the severe distrust between the two sides, each of which is in sole possession of potentially crucial evidence.

Gabriel Dechaine, an analyst at National Bank Financial Inc., wrote to clients that, “in a normal environment, such optimism would be met with positive expectations for stock price appreciation,” but he remains “more cautious ... as long as the disruptive forces of inflation that heighten recession expectations persist.

” In the fiscal second quarter, Scotiabank earned $2.75-billion, or $2.16 per share, compared with $2.46-billion, or $1.88 per share, in the same quarter last year.

Adjusted to exclude certain items, Scotiabank said it earned $2.18 per share, well above the consensus estimate of $1.98 per share among analysts, according to Refinitiv. In the same quarter, BMO earned $4.76-billion, or $7.

13 per share, compared with $1.3-billion, or $1.91 per share, a year earlier. After adjusting to exclude one-time items that include a $2.6-billion gain on a financial instrument tied to BMO’s US$16.

3-billion acquisition of California-based Bank of the West , profit was $2.187-billion, or $3.23 per share. On average, analysts expected $3.24 per share on an adjusted basis.

Former Bank of Canada governor Stephen Poloz recently predicted the country is heading for a period of stagflation – a mix of slow growth and high inflation. Sean Kilpatrick/The Canadian Press Both banks raised their quarterly dividends, by 3 cents per share to $1.03 at Scotiabank, and by 6 cents per share to $1.39 at BMO. Two key factors that have supported banks’ rising profits through much of the pandemic – rapidly rising mortgage balances and unusually low losses from defaulting loans – appear to have reached peaks, and are set to return to more normal levels.

Mortgage balances rose 16 per cent year over year at Scotiabank and 8 per cent at BMO, benefitting from the tail end of a red-hot streak for housing markets. But that yearly growth rate is “slowly slowing,” said Dan Rees, Scotiabank’s head of Canadian banking, and is likely to revert to a pace in the range of 6 to 9 per cent in the coming quarters even as some economists are predicting housing prices will fall . Provisions for credit losses – the funds banks set aside to cover losses in case loans default – “reached the floor this quarter,” said Phil Thomas, Scotiabank’s chief risk officer. He and his BMO counterpart, Mr. Cronin, expect loan loss reserves will gradually drift higher.

But with write-offs and delinquencies still very low, neither risk officer is predicting a spike in loan losses, even though it will rapidly get more expensive for consumers to service their debts. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening. .