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Big Bank Earnings Wrap: What RBC and CIBC Reveal About Your Mortgage

  Royal Bank and CIBC reported record or near-record profits before the market opened Thursday, closing out a jam-packed bank earnings week that also included BMO, Scotiabank and National Bank. Beyond the headline numbers, though, the details tucked into these reports say a lot about where mortgage rates, lending standards and household credit stress are actually heading — and it's a more reassuring picture than a lot of the tariff-and-tension headlines this month might suggest. RBC: Record Profit, Credit Quality Barely Budged Royal Bank of Canada posted net income of $6.0 billion for the quarter ended July 31, up 11% from a year earlier and a record for the bank. Diluted earnings per share came in at $4.23, up 13% year-over-year, while return on equity climbed to 17.9%. The number worth watching for anyone with a mortgage isn't the profit line — it's the provision for credit losses (PCL), the money banks set aside for loans that might go bad. RBC's total PCL was $1.0 b...
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Canada’s economy continues to sputter in Q4 2023

According to Statistics Canada, Canada’s economy showed no growth in October, remaining unchanged at 0.0% on a monthly basis, which is below analyst expectations of 0.2% growth . This marks the third straight month where economic growth was essentially unchanged. Advance estimates for November showed that GDP increased 0.1% last month, as increases in manufacturing, transportation and warehousing, agriculture, forestry, fishing and hunting were partially offset by decreases in retail trade .

The country’s economic engine continued to sputter in the fourth quarter, according to Royce Mendes, Desjardins’ managing director and head of macro strategy. He expects the economy to post “virtually no growth” in the fourth quarter and continue to stagnate. As more households and businesses feel the impacts of higher interest rates in 2024, we expect Canada to fall into at least a mild recession. So while the economy is sputtering now, it might begin rolling backwards early in the new year.


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