From The Globe and Mail: 2024-05-17 06:43:06

National Bank Financial analyst Gabriel Dechaine warns that interest rate cuts are needed to alleviate investor concerns and stimulate credit demand. He prefers CM, RY, and BMO as top picks. Dechaine predicts a small decrease in net interest margins for the Big 6 banks, with a focus on credit performance and CET 1 ratios.

Scotia analyst Meny Grauman predicts modest loan growth, flat margins, and higher impaired PCL ratios for Canadian banks. He emphasizes the importance of interest rates and the broader economy on bank stock performance. Grauman questions if the “Canadian economic miracle” is over due to factors like declining productivity and expensive housing markets.



Read more at The Globe and Mail: Friday’s analyst upgrades and downgrades