Canada Bank Earnings to Take Hit From Capital Markets, M&A Slump, RBC Says

Slumping capital markets and M&A revenues are set to hit earnings at Canada’s biggest banks when they report this month, according to Royal Bank of Canada.

RBC analyst Darko Mihelic chopped his profit forecast on five major Canadian lenders, citing a dearth of deals. The dollar value of mergers and acquisitions handled by the country’s largest banks likely dropped 77% in the fiscal third quarter compared with a year ago, Mihelic calculated, based on data compiled by Bloomberg.