Rate cuts hurt25bps cut = $4.6 million reduction in Net Interest Margin (NIM). What have we gotten so far from BoC? 100 bps since start of March. That's a $18.4 million reduction in NIM. Q1 2020 was not pretty already. With a lot of freezes in the economy who knows what impact there will be on LB.
March 4: 50bps
March 13: 50bps (surprise)
Overnight rate now at 0.75%
Expectations of another cut by the BoC, but we'll see if they match the US Fed going to 0%. The "good" thing is BoC officially started Quantitive Easing and is buying up Mortgage Bonds to reduce pressure on banks. As well capital requirements have been slightly eased for the banks to allow them to lend more. Though, in the case of COVID 19 and efforts to curb it, I don't know how much appetite for borrowing is out there.
One more thing that one might want to know about is LB's work from home policy. Some people may not be happy. Won't say any more from what I was hearing.