Banks expected to report positive results
Canada’s largest banks and mortgage lenders are preparing to report their latest financial results and the expectation is that they will show growth once more, although perhaps fairly moderate. Second-quarter results are predicted to show that the banks have proved resilient in the face of lower oil prices, which have frequently knocked their share prices over recent months. While some areas of banking have been under great pressure, the Globe and Mail reports that some other operations have been booming. Capital markets activity has been growing fast and banks have been pocketing the rewards of advisory and underwriting fees. Business lending is doing well too although mortgage lending and other consumer loans are not growing enough according to analysts. With interest rates lower in Canada and even lower in many other areas where the big banks operate have tightened profit margins in consumer lending.