The various banks have already been putting aside more funds to cover any souring loans due to continued high Canadian unemployment.
Canada's major banks are increasing their credit loss provisions due to uncertainty surrounding U.S. tariffs, which could impact first-quarter earnings. These provisions, already elevated due to high unemployment, will further reduce profits. Analysts predict net income changes ranging from a 7.5% drop for BMO to a 13.8% rise for RBC. Tariff concerns have negatively affected bank stocks and the Toronto Stock Exchange. Scotiabank may face greater impact due to its reliance on North American trade. Banks, including BMO and Scotiabank, will begin reporting earnings this week.
