Bank earnings_sq

Another bank earnings season has just wrapped up, giving us insight into how Canada’s Big 6 banks are monitoring and reacting to housing market risks, most notably runaway prices in Toronto and Vancouver.

Here’s some of what we learned from Big Banks’ third-quarter reports:

  • While credit card and personal lending delinquencies are rising, particularly in oil-producing provinces, loss rates on uninsured mortgage and HELOCs remain low and stable overall.
  • During the conference calls, a number of analysts openly pondered whether moderating growth in the banks’ mortgage portfolios may actually be prudent, given current market conditions.
  • There are clear signs of an industry-wide move towards a lower ratio of insured mortgages and lower loan-to-values on uninsured mortgages.

In keeping with CMT’s quarterly tradition, we’ve picked through the Big Banks’ quarterly earnings reports, presentations and conference calls, and compiled all the mortgage-related goodies. Notable tidbits are highlighted in blue.