Financial Post’s Post

In this special episode, Sohrab Movahedi, Chris Heakes and Daniel Stanley, CFA discuss the first quarter earnings from Canada’s “Big Six,” breaking down the recent results and the macro trends impacting markets. They also examine rising loan-loss provisions and commercial real estate and look back on the U.S. regional banking crisis a year after it began. http://spr.ly/6046kWrfi

In this special episode, Sohrab Movahedi, Chris Heakes and Daniel Stanley, CFA discuss the first quarter earnings from Canada’s “Big Six,” breaking down the recent results and the macro trends impacting markets. They also examine rising loan-loss provisions and commercial real estate and look back on the U.S. regional banking crisis a year after it began. https://lnkd.in/gE8uPwNS

From this week's Perspectives newsletter Engin Kose, our Research Director, provides commentary on this chart.   It is somewhat surprising that "higher-for-longer" rates could be seen as bad news for lenders. Typically, elevated interest rates should help banks boost net interest income. Consequently, bank managers had been indicating to the market in January that profits would likely decline in 2024 due to prospective rate cuts. However, guidance is shifting as the outlook for easing dims. Despite this shift, it hasn’t made a significant difference for analysts’ forecasts of #bank #earnings. At the beginning of last week, these forecasts reflected expectations for an 18% year-over-year contraction in banks’ net income. While this may seem like a low bar, Friday’s bank earnings still managed to disappoint. Read the full weekly newsletter on our website: https://bit.ly/3Q2aSNE #finance #economics #investing #stocks #macro #perspectives #etf

Could the Big Six earnings be delivering an unexpected gift to investors this holiday season? What are the key signals in Canadian banks' Q4 earnings that shareholders shouldn’t miss? Tune in to BNN Bloomberg to hear our colleague Dan Rohinton discuss the impressive fourth-quarter results of Canadian banks, which have surpassed the earnings per share predictions. Watch the interview here.👇🏼 https://lnkd.in/et25WaNu #stocks #equities #marketcall

As Q2 bank earnings get underway, shares of the major banks have been outperforming the broader market. Client Portfolio Manager Brian Mulberry notes, "The larger your balance sheet and the more diverse revenue-making operations you own inside your bank, the better off you seem to be," reflecting on the market's optimism around fee-generating businesses like investment banking amid a complex macroeconomic environment. Read the full article in Bloomberg: https://lnkd.in/giVyYZjF #BankEarnings #InvestmentBanking #MarketAnalysis

There's one week until Bloomberg's event "Sailing Through Uncertainty: Seeking Canadian Banks' Credit Cusp," a discussion on the challenging operating environment facing the big Canadian banks. Make sure you stop by to hear the perspective of Morningstar DBRS SVP and Sector Lead of North American Financial Institution Ratings, Carl De Souza, who will discuss the uncertain macroeconomic environment defined by high interest rates and elevated funding costs, and more. Get more information and register here: https://lnkd.in/gySrmkfj #Banking #FinancialInstitutions

Pitchbook recently released their Q2 Global M&A report. If you are a business owner considering a company sale in the near-term, this is a great read! Here are some key takeaways: ✅ Global M&A activity is tracking 10-15% ahead of 2023 in both deal count and value. ✅ PE's share of total M&A deal value rebounded to 41.0% in Q2 2024 from 33.5% in Q1, ending a nearly two-year decline. ✅ With potential rate cuts from central banks, the M&A market can anticipate borrowing costs to fall further, which should support a more robust recovery. Visit https://hubs.la/Q02Mzv0r0 to access the full report. #MergersAndAcquisitions #PrivateEquity #Finance #Economy #BusinessOwners https://hubs.la/Q02Mzxkl0

The Fed's still promising three rate cuts later this year. John Ciccolella, president of Bank of America-Pittsburgh, talked about what the pause means to small and mid-sized businesses on WPXI's "Our Region's Business." https://lnkd.in/g5JJhNNr #federalreserve #interestrates #ratecuts #economy #thefed #bankofamerica

Two U.S. banks are slated to post their quarterly earnings. Bank of America is expected to report a drop in 2Q profit as a drop in net interest income offsets investment banking gains. Morgan Stanley is expected to surge, in line with a broader recovery in underwriting activity.

🌟 Bank of America has surpassed earnings expectations, showcasing resilience amidst volatile markets! 🌟 In the third quarter, the bank’s trading revenue rose by 12%, bolstered by strong performance in equity and fixed income, currencies, and commodities. Investment banking also saw a significant uptick, signaling a rebound in dealmaking. With net income totaling $6.9 billion, or 81 cents per share, BofA’s results reflect the strength of U.S. consumers and businesses as borrowing costs shift. Read more about how BofA navigated these turbulent times and what it means for the future! 🔗 https://lnkd.in/egBXXQhm #NKDAdvisory #BankOfAmerica #EarningsReport #InvestmentBanking #Finance #Markets #Trading