Canada’s big bank reports Q3 results starting Tuesday
Earnings to benefit from decline in loan-loss provisions
Loan growth watched amid U.S. tariffs and trade uncertainty
TORONTO, Aug 25 (Reuters) – Canada’s big banks are expected to have lowered loan-loss provisions in the third quarter from the prior quarter as U.S. tariffs have likely hurt their loan portfolios less than feared.
Canada’s big six banks are expected to set aside a total of C$5.22 billion in loan-loss provisions for the third quarter, compared to C$6.37 billion in the second quarter, according to data compiled by LSEG.
The banks ramped up provisions over the past few quarters, bracing for potential bad loans in the belief that a possible North American trade war would hurt the economy and cause defaults on commercial loans, credit cards and mortgages.
About 92% of Canadian exports by value entered the U.S. tariff-free in June because they were exempt from…
