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Tag Archives: banks

Canada’s banks are cutting costs, but the real hurricane hasn’t hit yet


Executives at Canada’s largest banks have been stuck on repeat, telling investors about their efforts to cut and control costs. Starting a week Tuesday, this chorus “will reach a crescendo” when the banks report earnings for the last time this fiscal year, analysts at Scotia Capital said in a note. Canadian banks report next week and here’s …

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OSFI takes aim at banks’ residential mortgage capital requirements to keep pace with rising house prices, household debt


TORONTO Canada’s top banking regulator is planning to change the amount of capital banks must hold against residential mortgages to keep up with the rapid rise in house prices and highly leveraged buyers in some markets. Observers said the move, together with an announcement Friday by the federal government to …

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Investors can’t get enough of Canadian banks’ NVCCC preferreds as buffer to turbulent markets


Bank issues on viable contingent capital in the form of rate reset preferred shares is the $2- billion plus flavor of the month for investors. Given that they all pay attractive yields and are relatively risk free, they are attractive to buy certainly when considered alongside the negativity affecting the …

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Banks join the exemption order crowd allowing them to buy shares via private agreements


For the second time this year, a Canadian bank has been given permission by the Ontario Securities Commission to buy back a good chunk of its own shares via private agreements with an arms-length third party seller. This week, Toronto-Dominion Bank joined the parade and plans to purchase, for cancellation, …

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Bank of Montreal becomes first of the big banks to launch ’robo-adviser’ service


TORONTO — The Bank of Montreal has launched an online portfolio manager, making it the first of the big five Canadian banks to wade into the “robo-adviser” business. After a trial run that started on Dec. 7, the service — dubbed SmartFolio — is available to all investors starting Monday. …

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Canadian banks relying more heavily on wholesale funding than global counterparts: Moody’s


Canada’s biggest banks are relying more heavily on wholesale funding than their global peers, a situation that tends to raise the risk of periodic difficulties in refinancing debt, according to Moody’s Investors Service. However, the ratings agency says the large Canadian financial institutions offset these risks – which can also …

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Canada’s banks could be forced to raise equity, cut dividends if oil prices keep sinking, Moody’s warns


Some Canadian banks could be forced to preserve capital by raising equity or even cutting dividends if oil prices continue to slump, Moody’s warns in a new report. In a “severe stress” scenario modelled by the ratings agency, and included in the report to be widely circulated Monday, losses in …

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China moves to boost banks’ lending, signalling renewed focus on growth over yuan


China’s latest easing move signals that shoring up growth is the government’s top priority even if doing so further weakens the yuan or adds to leverage that threatens the longer-term health of the world’s second-biggest economy. ‘Good progress,’ but few details on how to strengthen global economy as G20 summit …

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Untapped loans double Canadian banks oil exposure to $107 billion


Canadian banks’ exposure to the struggling oil-and-gas industry totals $107 billion when including untapped credit lines with outstanding loans, according to a review of company filings. That’s double the $50 billion in total outstanding loans generally highlighted by Royal Bank of Canada, Toronto-Dominion Bank and the country’s four other large …

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Analysts at banks advising Corus-Shaw deal take different tacks when it comes to research


The two Canadian investment banks that acted as financial advisers in Corus’ $2.65-billion acquisition of Shaw Media have taken opposite approaches to how their research desks have covered the proposed transaction, which has been opposed by at least one Corus minority investor. Catalyst’s opposition to Corus-Shaw Media deal questioned by investors, analysts The …

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