The Financial Post reports in its Friday edition that the economic uncertainty stemming from U.S. President Donald Trump's proposed tariffs could compel Canada's biggest banks to report provisions for credit losses that are higher than what analysts had previously expected when the lenders release quarterly results next week. The Post's Naimul Karim writes that such a move could dampen the mood for the quarter ending Jan. 31, analysts say. "Based on where our estimates stand today, we expect most banks to handily beat consensus, provided the banks do not take this opportunity to build higher performing reserves," Mario Mendonca, an analyst at TD Bank, said in a note. Jefferies analyst John Aiken said the outlook for 2025 and beyond is "quite binary" based on whether the Trump administration will impose tariffs. "We expect much of the conversation around the quarter will centre on what the potential implications could be and what, if anything, the bank management teams can do to mitigate the negative impact," he said. Rising provisions for credit losses have negatively affected the Big Six in recent years as borrowers found it difficult to pay back loans amid persistent inflation and prolonged high interest rates.
© 2025 Canjex Publishing Ltd. All rights reserved.