- Canada's big five banks set aside C$3.37bn for loan losses in Q1 2023, up almost 13-fold YoY.
- Higher provisions due to a more unfavorable macroeconomic outlook and increased risk of a recession.
- Elevated risks in North America's commercial real estate sector cited as a reason for credit loss reserves.
- Canadian mortgage and personal loan portfolios considered very solid.
- Four of the big five banks missed analysts' profit expectations.
Canada’s big banks log 13-fold rise in loan loss provisions
North American commercial real estate lenders prepare for increase in defaults as economic outlook darkens
Jaren Kerr
