Royal Bank of Canada (RBC) said on Wednesday it expected a softer landing for the economy, but the country's largest lender reiterated its forecast of a moderate recession this year after setting aside bigger provisions for potential bad loans.
RBC, which has a large capital markets business in Canada, also saw its results receive a boost from a surge in fixed income trading activity, which cushioned the hit from lower revenues from corporate and investment banking.Shares of RBC were down 2.5% at C$135.14 while National Bank shares were up 2.4% at C$102.62.
"While underlying results were solid, we are concerned that it may not be enough to offset concerns on the outlook for further deterioration in credit," Barclays analyst John Aiken said in a note. The ongoing economic uncertainty, lack of easy money and volatile markets have, however, bolstered demand for loans, both among individuals and businesses.
But banks are also preparing for more of such borrowers to fall behind on loan repayments. RBC's provisions for bad loans jumped five-fold to C$532 million , while National Bank set aside C$86 million provisions, compared with a release of C$2 million last year.On an adjusted basis, RBC earned C$3.10 per share for the quarter ended Jan. 31, ahead of analysts' average estimate of C$2.93 per share, according to Refinitiv IBES data.
National Bank's adjusted profit of C$2.56 per share also handily beat expectations of C$2.37 per share.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Indy man sentenced to nearly 4 years in prison for string of bank robberiesAn Indianapolis man was sentenced to nearly four years in prison after pleading guilty to a string of bank robberies that occurred between December 2020 and April 2021.
Read more »
JPMorgan says little-known West Virginia fintech is positioned as ‘bank of choice’ for online gamingThe bank began research coverage of MVB Financial with an overweight rating, citing its position as the dominant bank in online sports betting and gaming.
Read more »
Parenting, Baby Names, Celebrities, and Royal News | CafeMom.com
Read more »
Parenting, Baby Names, Celebrities, and Royal News | CafeMom.com
Read more »
How a Canada Revenue Agency strike could impact the 2023 tax seasonStrike votes are taking place until April 7, right in the middle of this year’s tax season, running from Feb. 20 to May 1.
Read more »
Parenting, Baby Names, Celebrities, and Royal News | CafeMom.com
Read more »