BMO, Scotiabank miss profit estimates as bad loan provisions, costs rise

Canadian banks Bank of Montreal (BMO.TO) and Bank of Nova Scotia (BNS.TO) reported lower-than-expected quarterly profits due to increased provisions for bad loans caused by the Bank of Canada's interest rate hikes, which have slowed the housing market and increased consumer debt.

reuters.com

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8/25/2023

Canadian GDP To Show Slowing Growth, Or The BoC May Hike Rates: RBC - Better Dwelling

Canada's biggest bank is warning investors of an economic slowdown as preliminary estimates show a sharp deceleration in GDP growth and weakening consumption and investment, raising the question of whether this slowdown will prevent further rate hikes.

8/29/2023

Posthaste: Bank of Canada may pause rate hikes when it sees this big data

Canada's upcoming gross domestic product (GDP) reading is expected to be closely watched by the Bank of Canada (BoC) ahead of its September interest rate decision, with economists predicting a slowdown in the second quarter that could lead to a pause in interest rate hikes despite higher-than-expected inflation. The impact of recent wildfires and a dock workers strike is also expected to affect the data.

9/1/2023

Canada's economy unexpectedly shrinks; central bank likely to hold rates

Canada's economy unexpectedly contracted in the second quarter, raising concerns of a possible recession, as declines in housing investment and slower exports and household spending impacted growth. This is likely to lead the central bank to hold interest rates steady.

9/17/2023

Stocks Can Still Outperform During Periods of High Interest Rates, Says New Research

Higher interest rates have historically correlated with lower market returns, but new research from BMO Capital Markets suggests that the impact of higher rates on the S&P 500 is overblown, as returns tend to be slightly below average but with lower volatility; BMO recommends buying 28 stocks with low leverage and high free cash flow to benefit from this strategy.

9/17/2023

BMO Eliminating Auto Finance Jobs, Indigo Founder Reisman Returns as CEO, Unifor-Ford Contract Expires Tonight, Shake Shack Tests New Healthier Fries

Bank of Montreal (BMO) is shutting down its indirect retail auto finance business, which will result in job losses, while Indigo Books & Music Inc. announced that founder Heather Reisman has returned as CEO, Amazon faces contract expiration with Ford, Shake Shack tests alternative frying oil, Cadence Bank CEO warns of a regional banking crisis, Canada risks losing over $50 billion in clean tech investments, government shutdown and oil prices are factors to watch, banks initiate $2.9 billion bond sale for Worldpay buyout, Joby Aviation plans to build air taxi production plant in Ohio, Canada's housing crisis will take years to solve, Tesla is in talks with Saudi Arabia for an EV factory, and a Toronto landlord prohibits electric vehicles on its property.

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Posted 8/29/2023, 2:19:00 PM

BMO, Scotiabank miss profit estimates as bad loan provisions, costs rise

reuters.com

Relevant topic timeline:

8/25/2023

Canadian GDP To Show Slowing Growth, Or The BoC May Hike Rates: RBC - Better Dwelling

8/29/2023

Posthaste: Bank of Canada may pause rate hikes when it sees this big data

9/1/2023

Canada's economy unexpectedly shrinks; central bank likely to hold rates

9/17/2023

Stocks Can Still Outperform During Periods of High Interest Rates, Says New Research

9/17/2023

BMO Eliminating Auto Finance Jobs, Indigo Founder Reisman Returns as CEO, Unifor-Ford Contract Expires Tonight, Shake Shack Tests New Healthier Fries