A number of analysts are lowering their profit estimates and cutting their 12-month price targets on Canada’s Big Six banks ahead of earnings season that gets underway next week.In a note to clients on Wednesday, Canaccord analyst Scott Chan said he revised his adjusted earnings-per-share estimates for the banks down by an average of five per cent as they face a number of macroeconomic headwinds including high inflation, a housing slowdown and recession fears.
As borrowing rates rise and the economy remains on uncertain footing, some analysts said they’re narrowing in on credit trends this upcoming reporting season.“Deterioration in the economic outlook and factors such as inflation and the impact of higher interest rates on debt service ratios necessitate greater conservatism in provision accounting,” Gabriel Dechaine, an analyst at National Bank of Canada Financial Markets, said in a client note on Monday.
CEO bonus increases.
Dividend cuts.
I’ll watch the banks profits grow while ppl buying power erode.
Layoffs