It will be another strong quarter for Canadian banks if fiscal third-quarter results are any indication.
As interest rates rise and housing markets show signs of moderate cooling with tighter lending rules, analysts
predict solid growthacross the industry with estimates of earnings-per-share growth as high as 10% year-over-year.
Despite national home sales declining in July 2018 by 1.3% compared to the same time a year earlier, its effects on banks is starting to erode. The Bank of Canada raised the national interest rate for the fourth time in a year that month from 1.25% to 1.5%, which hiked profit margins for lenders. Most Canadian lenders received a jolt as homebuyers rushed to lock in their loans before new rules took effect at the beginning of the year which led to solid first and second quarters.
On Wednesday, Royal Bank will be the first to give its Q3 2018 results, next will be Canadian Imperial Bank of Commerce on Thursday, followed by Bank of Nova Scotia and Bank of Montreal on August 28th, National Bank of Canada on August 29th and Toronto Dominion Bank on August 30th.