“Canadian banks are facing a tough economic environment, raising some uncertainty among observers over what the Big Six’s quarterly financial results will look like this week.
At home, oil prices are in the dumps and Canada’s economy has contracted for five straight months. Abroad, ongoing worries about Greece’s position within the euro zone and China’s recent decision to devalue its currency are raising alarms about the health of the global economy,” wrote David Berman, Banking Reporter for The Globe and Mail on Sunday August 23, 2015.
Berman continued, “Bank stocks have slid more than 11 per cent since April, hitting 18-month lows. Valuations, based on earnings expectations, have also fallen sharply over the past several months, to levels that reflect some pessimism about the sector’s growth prospects.
Indeed, analysts expect third-quarter bank earnings will rise by an average of just 2 per cent over last year – a cautious forecast that will be tested over the next several days.
Bank of Montreal kicks things off with its results on Tuesday; Bank of Nova Scotia wraps things up on Friday.”
Read the full article here.
Raymond Matt, CFP, CLU, TEP, CHS
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