Credit costs eased for both banks when compared to the third quarter, aided by a better economic outlook. The change helped boost earnings on a quarter-over-quarter basis, with Scotiabank’s fourth-quarter profit rising 46 per cent and BMO’s up 28 per cent relative to the third quarter.
Both banks also saw decreases in the amount of debt on which customers are deferring payments, which shot up in the early days of the pandemic. “We’ve been pleased with our overall risk performance given the acute stress and uncertainty caused by the pandemic, and expect credit losses through fiscal 2021 to remain manageable,” Cronin said.
There is also some concern for the staying power of the economic recovery, given a resurgence in COVID-19 cases in Canada and decisions by governments to reimpose restrictions on people and businesses. StatsCan noted that third-quarter real gross domestic product was still down 5.3 per cent compared to the end of 2019.
The fake vaccine will not.
They're all part of a terrible cabal!