The Financial Post reports in its Saturday edition that Canada's largest banks had aimed to reduce their provisions for potentially bad loans in late 2026, but analysts believe this is becoming unlikely. The Post's Naimul Karim writes that most expect the banks to revise their guidance on provisions for credit losses when they announce second quarter earnings this week. Canaccord's Matthew Lee said: "PCL improvements now feel like a fiscal year 2027 story. Given a more challenging macroeconomic environment, we now expect fiscal year 2026 to be another year of elevated credit levels, with limited evidence of improving consumer health." But Jefferies' John Aiken said that doesn't mean there will be any material degradation in PCLs and he expects them to be similar to the first quarter. He said last week: "We believe that the market will be listening closely to management's commentary on the calls. Any shift toward a more conservative commentary, after previously arguing for a better second half, will likely be viewed negatively." This is the first time the banks will be reporting their results after the start of the war on Iran, which has led to an increase in energy prices and further dampened the economic outlook.