Canadian banks' third-quarter 2010 saw a sectorwide trend of lower trading revenues; however, improving credit quality and still-strong revenues from the banks' retail banking businesses somewhat offset this. Canadian homebuyers' demand for mortgages in particular continued to bolster Canadian banks' quarterly performance, reflecting the still-low interest rate environment and benefiting the banks' Canadian retail lending operations. However, the strong growth in secured real estate lending started to abate over the summer months with the advent of the Harmonized Sales Tax on new homes in Ontario and British Columbia, rising rates, and slowing economic recovery--a trend we see continuing, and so, we believe that growth in consumer retail lending revenues is likely to slow and commercial lending remains tepid. Canadian banks'...
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
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