Connect with us

Business

Banks set to reveal earnings amid wobbly housing market, interest rate uncertainty

Editor

Published

on

[ad_1]

Canada’s biggest banks are set to report on what has traditionally been the strongest quarter of the year, but market volatility and slower mortgage growth during the period could weigh on their latest results.

North American markets saw a sharp sell-off at the end of 2018 amid a trade skirmish between China and the U.S. and political uncertainty with a partial shutdown south of the border, potentially hampering the banks’ related earnings.

“With markets falling through much of the fall and recovering through much of the winter so far … Everything from mutual fund fees to underwriting revenues will likely have been down,” CIBC analyst Robert Sedran said in a note to clients.

“Trading, as ever, is a wildcard but we do expect a sequential decline as well.”

The Royal Bank of Canada is the first lender to report its results for the three-month period ended Jan. 31 on Friday, followed by the Bank of Montreal and the Bank of Nova Scotia on Feb 26. National Bank of Canada reports its latest quarterly earnings on Feb. 27, followed by the Toronto Dominion Bank and the Canadian Imperial Bank of Commerce on Feb. 28.

During the earnings conference calls to discuss the banks’ results for the previous quarter, lenders expressed optimism for the coming financial year, but some said the bumpy stock-market ride could add downward pressure.

“We expect to see some weakness year-over-year in our wealth and wholesale businesses, given the recent market volatility … However, our above-average net sales and strong investment banking pipeline will position us well for growth throughout the year,” said RBC’s chief financial officer Rod Bolger on a conference call with analysts in late November.

Investors’ concerns about the strength of the Big Six banks market-related earnings in the latest quarter are “overstated” given the market rally in January, said Meny Grauman, an analyst with Cormark Securities.

“The reality is that market-related revenues should have actually held up better than most investors’ fear, especially in the wealth business where the Canadian banks’ fiscal calendar should have helped as the Q1 numbers would have captured a very healthy stock market rally in January,” he said in a note to clients.

The financial first quarter has historically been the most robust period for capital markets and trading revenues and “could save the day” for the banks, said John Aiken, an analyst with Barclays in Toronto. Over the past nine years, Canadian banks have seen an uptick in capital markets revenues in the first quarter, up an average of 15 per cent from the previous quarter, he added.

While the macroeconomic environment is becoming increasingly challenging, the banks are expected to continue benefitting from the five central bank interest rate hikes since July 2017, Aiken added in his note to clients.

Those hikes have padded the banks’ net interest margins, which is the difference between the money they earn on the loans they make and what they pay out to savers.

“We anticipate NIMs will remain a positive story for much of 2019,” Aiken said. “That said, amidst rising rates, the slowdown in household and mortgage credit continues, with annual residential mortgage credit growth of 3.1 per cent in December, marking the slowest rate since May 2001 and roughly half of the growth rate from two years ago.”

Home sales down

Residential home sales in Canada in January were the weakest since 2015, down four per cent from the previous year, according to the Canadian Real Estate Association. In December, home sales slipped for the fourth month in a row to cap off the weakest annual sales since 2012.

CREA attributed the drop in December to a rush of buyers at the end of 2017 who moved to lock in home loans before a new stress test for uninsured mortgages took effect on Jan. 1, 2018.

In turn, Canadian banks also saw a surge of mortgage lending during the financial first quarter one year ago — setting a high bar for comparison for quarterly results this year.

Some banks reported increases in mortgage originations of as much as 20 per cent during the first half of fiscal 2018, said Gabriel Dechaine, an analyst with National Bank of Canada Financial Markets.

“‘Pull forward’ uninsured mortgage originations were surprisingly high … As such, we could see a larger-than-expected slowdown in new originations during H1/19, simply due to the ‘tough comps’ effect,” he said in a note to clients.

[ad_2]

Source link

قالب وردپرس

Business

Ottawa education workers still teaching special-ed students at schools want safety checks

Editor

Published

on

By

Some Ottawa educators say they are concerned about the safety of classrooms that remain open in schools for special-education students.

Ontario elementary and secondary students have been sent home to study virtually because of the dangers posed by rising rates of COVID-19. However, special-education classes are still operating at many bricks-and-mortar schools.

The special-education classes include students with physical and developmental disabilities, autism and behaviour problems. Some don’t wear masks and require close physical care.

Two unions representing teachers and educational assistants at the Ottawa-Carleton District School Board have sent letters to Ottawa Public Health expressing their concerns.

It’s urgent that public health officials inspect classrooms to assess the safety of the special-ed classes, said a letter from the Ottawa branch of the Ontario Secondary School Teachers’ Federation, which also represents the educational assistants who work with special-needs children.

“In the absence of reasons based on medical evidence to keep specialized systems classes open, we are unsure as to the safety of staff and students in these programs,” said the letter signed by president Stephanie Kirkey and other union executives.

The letter said staff agreed that students in specialized classes had difficulty with remote education and benefited most from in-person instruction.

“Our members care deeply about the students they work with and are not only concerned about their own health and safety, but also about that of their students, as they are often unable to abide by COVID safety protocols that include masking, physical distancing and hand hygiene, thus making it more likely that they could transmit the virus to one another,” the letter said.

The Ottawa-Carleton District School Board has 1,286 elementary and secondary students in special-education classes attending in person at 87 schools, said spokesperson Darcy Knoll.

While final numbers were not available, Knoll said the board believed a large number of the special-education students were back in class on Friday at schools.

In-person classes for other elementary and secondary students are scheduled to resume Jan. 25.

The school boards provide PPE for educators in special-education classes as required, including surgical masks, face shields, gloves and gowns.

Several educators interviewed said they don’t understand why it has been deemed unsafe for students in mainstream classes to attend class, but not special-ed students.

Continue Reading

Business

Ottawa sets record of 210 new COVID-19 cases following lag in data reporting

Editor

Published

on

By

Ottawa has now broken its daily record for new COVID-19 cases twice in 2021, with 210 new cases added on Friday amid a lag in data reports from earlier in the week.

The nation’s capital has now seen 10,960 cases of the novel coronavirus.

Ottawa Public Health’s COVID-19 dashboard reports 977 active cases of the virus in Ottawa, a jump of more than 100 over Thursday’s figures.

One additional person has died in relation to COVID-19 in Ottawa, raising the city’s death toll in the pandemic to 395.

The record-setting case count comes a day after Ottawa reported a relatively low increase of 68 cases. Ontario’s COVID-19 system had meanwhile reported 164 new cases on Thursday.

OPH said Thursday that due to a large number of case reports coming in late Wednesday, the local system did not account for a large portion of cases. The health unit said it expects the discrepancy to be filled in the subsequent days.

Taken together, Thursday and Friday’s reports add 278 cases to Ottawa’s total, a daily average of 139 cases.

The new single-day record surpasses a benchmark set this past Sunday, when the city recorded 184 new cases.

Ontario also reported a new record of 4,249 cases on Friday, with roughly 450 of those cases added due to a lag in reporting in Toronto.

The number of people hospitalized with COVID-19 also continues to climb in Ottawa. OPH’s dashboard shows there are currently 24 people in hospital with COVID-19, seven of whom are in the intensive care unit.

Three new coronavirus outbreaks were added to OPH’s dashboard on Friday. One outbreak affects a local shelter where one resident has tested positive for the virus, while the other two are traced to workplaces and private settings in the community.

Continue Reading

Business

Ottawa family dealing with mould issue in apartment grateful for support

Editor

Published

on

By

OTTAWA — An Ottawa family, who has been dealing with mould in their south Ottawa apartment, is grateful for the support they have received from the community.

“I would like to say big very mighty, big thank you to everyone,” says Nofisat Adeniyi.

Adeniyi lives with her three sons in a South Keys apartment. Her son Desmond turned to social media on Sunday to seek help for the family, saying they’ve been dealing with mould in their unit and it has taken too long to fix.

“I see my mom go through a struggle everyday; with three kids, it’s not easy,” says 16-year-old Desmond Adeniyi.

He setup a GoFundMe page to help the family raise money to move out. After gaining online attention and the story, which originally aired CTV News Ottawa on Tuesday, they have been able to raise over $30,000.

“Yes! I was surprised, a big surprise!” says Nofisat Adeniyi, “We are free from the mess that we’ve been going through.”

The family was so touched, they decided to pay it forward and donated $5,000 to another family in need, “A lady my son told me about,” says Nofisat Adeniyi.

The recipient wants to remain anonymous, but when she found out from Adeniyi, “She was crying, she has three kids; I remember when I was, I can feel what she’s feeling – because I was once in those shoes.”

CTV News Ottawa did reach out to the property management company for an update on the mould. In a statement on Wednesday, a spokesperson for COGIR Realty wrote:

“We respect the privacy of our residents and are unable to disclose any specific information regarding any of our residents. We can, however, let you know that we are working with the residents and are making every effort to resolve this matter as soon as possible,” said Cogir Real Estate

The giving did not stop at just cash donations. “When I saw the segment, the thing that struck me the most was how easily the situation can be resolved,” says mould removal expert Charlie Leduc with Mold Busters in Ottawa.

Leduc is not involved in the case, but appeared in the original story, and after seeing the mould on TV wanted to help.

“This isn’t something that we typically do, but given the circumstance and given the fact that this has gone on way too long, our company is willing to go in and do this work for free,” said Leduc.

The Adeniyi family may now have some options, and are grateful to the community for the support.

“Yes, It’s great news — you can see me smiling,” says Nofisat.

Continue Reading

Chat

Trending