May 24, 2022

The Queens County Citizen

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Quarterly Results | Interest rates and perspective for inflation: crucial for banks

Quarterly Results |  Interest rates and perspective for inflation: crucial for banks

(Toronto) Investors looking at banks’ quarterly results due out this week will be looking for any clues as to how companies are planning to tackle the two biggest trends of the year: interest rate hikes and inflation.

Posted yesterday at 2:15 p.m.

Analysts expect the central banks of Canada and the United States to start raising interest rates in March, so analysts are looking at any changes in the outlook for Canadian banks, a Scotiabank analyst said in a note to Money Grameen clients. .

Spending is another trend that needs to be looked at as wages and other costs are rising in a competitive growth environment, he said.

Royal Bank analyst Darko Mihelik said big bank executives had so far given signals that the risk of inflation could be controlled, but he would pay close attention to any change in tone in this regard.

Judging by the first quarter results, Mihelik expects credit growth to improve and lower provisions for bad debt losses.

Royal Bank will open the ball by announcing its results on Thursday. It will be simulated on Friday 1st by CIBC and National Bank, Bank of Montreal and Scotiabank.er March and March 3 by TD Bank.

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