Industry Report Card: Still-Strong Demand For Mortgages And Improving Credit Quality Highlight Canadian Banks' Second-Quarter Results Jun 10
Standard & Poors, June 2010
Abstract
Strong mortgage volume growth fueled Canadian banks' still-solid domestic retail revenues (mortgages are about 50% of the seven largest Canadian banks' loan portfolios) in second-quarter 2010. In our opinion, other highlights of the banks' performance were stabilizing--and even improving--credit quality, generally weaker capital markets-related performance, and stronger, wealth management revenues. In our view, potential risks for Canadian banks continue to include lack of clarity on the global economic recovery, including their exposures to the fragile U.S. recovery and the broader implications to the recovering Canadian economy, as well as uncertainty regarding new financial regulations. Canadian homebuyers' still-strong demand for mortgages continued to bolster Canadian banks' quarterly performance, reflecting the low rate environment and benefiting the banks' Canadian retail lending operations....
Companies mentioned in this report are:
- Royal Bank of Canada
- Toronto-Dominion Bank
- Bank of Montreal
- The Bank of Nova Scotia
- Canadian Imperial Bank of Commerce
- National Bank of Canada
- Laurentian Bank of Canada
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
- Royal Bank of Canada
- Toronto-Dominion Bank
- Bank of Montreal
- The Bank of Nova Scotia
- Canadian Imperial Bank of Commerce
- National Bank of Canada
- Laurentian Bank of Canada
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