Canadian Banks Report Mixed Results While Bracing for Economic Slowdown
• Canadian banks report mixed Q4 results, but bad loan provisions spike to highest level since pandemic • Banks forecast slowing economy in 2023, cite signs of slowing job market and expectation of Bank of Canada rate cuts • Impaired loans increase in residential mortgages, real estate, and construction sectors • Expenses higher due to nearly 10,000 job cuts across banks, severance costs, and continued tech investments • Despite mixed results, banks have healthy capital levels, able to withstand loan book volatility