Finance
RBC, CIBC Pull Away From Canada Peers on Better Credit Forecast
- Big Six Lenders diverge on provisions for credit losses
- RBC, CIBC posted rosier outlooks and saw stock price bumps
This article is for subscribers only.
When it comes to credit quality, two of Canada’s Big Six lenders were clear winners last quarter: Royal Bank of Canada and Canadian Imperial Bank of Commerce, which both set aside much less money to cover loan losses than expected, fueling solid earnings beats in the process.
At the other end of the spectrum stood Bank of Montreal, which faced a round of analyst downgrades this week on growing concerns that it is an outlier in its overexposure to commercial loan losses in Canada and the US.