Canadian Banks to Post Profit Gains on Rising Interest Rates
- Six biggest banks may see 7% to 10% jump in adjusted earnings
- Four rate hikes may help lift interest income, widen margins
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Canadian banks will likely report profit gains of as much as 10 percent in the third quarter as four rate increases by the Bank of Canada make consumer and commercial loans more profitable.
Canada’s six largest lenders are expected to post average adjusted earnings growth ranging from 7 percent to 10 percent for the fiscal period ended July 31, according to estimates from bank analysts. Royal Bank of Canada, the country’s second-largest lender by assets, kicks off bank earnings on Aug. 22.