1001 ET - Despite expectations that earnings for Canada's big banks have stalled, several are set to lift payouts to shareholders, BMO Capital Markets' Sohrab Movahedi says. The earnings season for banks kicks off May 22 starting with Toronto-Dominion Bank. Movahedi reckons the Big 5 banks, excluding Bank of Montreal, will turn in flat cash operating EPS following three consecutive quarters of double-digit year-on-year growth. The analyst expects credit quality and reserve adequacy to be a key focus this quarter amid macroeconomic uncertainty. Still, dividend increases are expected from Bank of Nova Scotia, Royal Bank and National Bank of Canada this quarter, Movahedi says. BMO has outperform calls on Royal Bank, TD Bank and Canadian Imperial Bank of Commerce for their defensive qualities. (robb.stewart@wsj.com)
(END) Dow Jones Newswires
May 16, 2025 10:01 ET (14:01 GMT)
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