Latest news with #DarkoMihelic
Business Insider
3 days ago
- Business
- Business Insider
RBC Capital Reaffirms Their Sell Rating on Laurentian Bank (LRCDF)
In a report released yesterday, Darko Mihelic from RBC Capital maintained a Sell rating on Laurentian Bank (LRCDF – Research Report), with a price target of C$25.00. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter According to TipRanks, Mihelic is a 5-star analyst with an average return of 7.2% and a 60.22% success rate. Mihelic covers the Financial sector, focusing on stocks such as Great-West Lifeco, Sagicor Financial, and Bank Of Montreal. In addition to RBC Capital, Laurentian Bank also received a Sell from National Bank's Gabriel Dechaine in a report issued on May 16. However, yesterday, Jefferies maintained a Hold rating on Laurentian Bank (Other OTC: LRCDF). The company has a one-year high of $22.57 and a one-year low of $16.46. Currently, Laurentian Bank has an average volume of 8,937.
Business Insider
22-05-2025
- Business
- Business Insider
RBC Capital Sticks to Their Buy Rating for Equitable Group (EQGPF)
RBC Capital analyst Darko Mihelic maintained a Buy rating on Equitable Group (EQGPF – Research Report) on May 20 and set a price target of C$147.00. The company's shares closed last Tuesday at $69.09. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks straight to you inbox with TipRanks' Smart Value Newsletter According to TipRanks, Mihelic is a 5-star analyst with an average return of 7.2% and a 60.72% success rate. Mihelic covers the Financial sector, focusing on stocks such as Sagicor Financial, Bank Of Montreal, and Bank Of Nova Scotia. In addition to RBC Capital, Equitable Group also received a Buy from CIBC's Paul Holden in a report issued on May 20. However, on May 16, National Bank maintained a Hold rating on Equitable Group (Other OTC: EQGPF). The company has a one-year high of $80.73 and a one-year low of $57.75. Currently, Equitable Group has an average volume of 2,348. Based on the recent corporate insider activity of 66 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of EQGPF in relation to earlier this year.
Reuters
26-02-2025
- Business
- Reuters
National Bank of Canada's bad loan reserves builds, shares fall
Feb 26 (Reuters) - National Bank of Canada ( opens new tab on Wednesday set aside larger than expected reserves for bad loans, signaling challenges ahead even as strong income from dealmaking helped deliver a profit beat. Shares of Montreal-based National Bank, Canada's sixth largest bank, were down 3.7% at C$122.8 in Toronto. Canadian banks are setting aside provisions for potential loan losses to shield themselves in a souring economy as the threat of tariffs increases and tensions with the United States escalate. Bank of Montreal ( opens new tab on Tuesday said clients were pausing activity that could potentially hurt loan growth and M&A activity as they wait for the full impact of the tariff war to play out. Unlike other big banks that have sought growth opportunities in the U.S., National Bank has expanded in Canada, acquiring Canadian Western Bank. CEO Laurent Ferreira said the move would accelerate its domestic growth. "We have a negative view of Q1," RBC Capital Markets analyst Darko Mihelic said, noting that credit has deteriorated even before any potential tariff impact has been seen. The Canadian central bank's move to lower interest rates has boosted appetite for mergers and acquisitions, helping National Bank and bigger peers BMO and Bank of Nova Scotia ( opens new tab beat analysts' estimates for quarterly profits. On an adjusted basis, National Bank earned C$2.93 per share in the three months ended January 31, compared with the average analysts estimate of C$2.65, according to LSEG data. Provision for credit losses of C$254 million was more than the estimate of C$198 million. It had set aside C$120 million a year ago. The country's seventh largest lender, EQB Inc ( opens new tab, which offers services through its digital EQ Bank platform, reported better than expected profit, helped by lower loan loss provisions. The lender earned C$2.98 per share, topping estimates of C$2.76. ($1 = 1.4334 Canadian dollars)
Yahoo
24-02-2025
- Business
- Yahoo
Canadian banks expected to build reserves to cushion tariff uncertainty
TORONTO (Reuters) - Canada's big six banks are expected to build more credit loss provisions as they brace for uncertainty surrounding the U.S. tariff threat, analysts said, potentially weighing on first quarter earnings and beyond. The banks have already been putting aside more funds to cover any souring loans due to continued high Canadian unemployment, which has fuelled investor concerns despite some more robust economic data recently. Also called provisions for credit losses, a rise in those funds dents profits for the banks. U.S. President Donald Trump's threat to impose a 25% tariff on all non-energy Canadian imports starting in March means banks are likely to set aside yet more rainy day funds, even as they are expected to benefit from a boom in capital markets activity and strong wealth management earnings in the first quarter. "(We) expect large banks to build larger performing provisions for credit losses than we previously believed... we also believe pessimistic scenario assumptions may become more pessimistic," RBC Dominion Securities analyst Darko Mihelic said. For the first quarter, loan loss provisions are expected to jump between 6.4% for Royal Bank of Canada to as much as 80% for Bank of Montreal. CIBC is expected to show a fall in provisions of 0.7%, according to LSEG data. Net income forecasts for the six banks range from a 7.5% fall for BMO to 13.8% growth for RBC. Mihelic forecasts provisions to increase about 70% to $5.6 billion in aggregate and expects core earnings to decrease about 10% year-over-year in the first quarter. The banks report later this week starting with BMO and Bank of Nova Scotia, also known as Scotiabank, on Tuesday. The uncertainty triggered by Trump's tariff threats has weighed on bank stocks and the broader Toronto Stock Exchange, due to concerns about the duties triggering a recession. "The potential impact of tariffs on all of these key earnings drivers is likely to dominate the earnings calls this quarter," Scotiabank analyst Meny Grauman said, noting that one key area of interest will be how banks expect provisions to reflect tariff risks. Four of the big six banks - RBC, Scotiabank, CIBC and National Bank - have lost between 2.3% and 6% so far this year, while the broader Toronto Stock Exchange has gained 3%. TD Bank and BMO have gained 12% and 2.5% respectively. Scotiabank, which sold some of its South American assets recently, is the only bank that has focused largely outside of the U.S., betting on the $1.5 trillion North American trade corridor. Analysts have noted Scotiabank could be more significantly impacted than peers in a tariff scenario, because their diversification strategy was based on growth in North American trade. "We could return to a more positive call if Mexico and Canada are able to negotiate relatively harmless tariffs. Until that happens, we think it will be hard for (Scotiabank's) stock to be a relative outperformer," CIBC analyst Paul Holden said.
Yahoo
24-02-2025
- Business
- Yahoo
Canadian banks expected to build reserves to cushion tariff uncertainty
TORONTO (Reuters) - Canada's big six banks are expected to build more credit loss provisions as they brace for uncertainty surrounding the U.S. tariff threat, analysts said, potentially weighing on first quarter earnings and beyond. The banks have already been putting aside more funds to cover any souring loans due to continued high Canadian unemployment, which has fuelled investor concerns despite some more robust economic data recently. Also called provisions for credit losses, a rise in those funds dents profits for the banks. U.S. President Donald Trump's threat to impose a 25% tariff on all non-energy Canadian imports starting in March means banks are likely to set aside yet more rainy day funds, even as they are expected to benefit from a boom in capital markets activity and strong wealth management earnings in the first quarter. "(We) expect large banks to build larger performing provisions for credit losses than we previously believed... we also believe pessimistic scenario assumptions may become more pessimistic," RBC Dominion Securities analyst Darko Mihelic said. For the first quarter, loan loss provisions are expected to jump between 6.4% for Royal Bank of Canada to as much as 80% for Bank of Montreal. CIBC is expected to show a fall in provisions of 0.7%, according to LSEG data. Net income forecasts for the six banks range from a 7.5% fall for BMO to 13.8% growth for RBC. Mihelic forecasts provisions to increase about 70% to $5.6 billion in aggregate and expects core earnings to decrease about 10% year-over-year in the first quarter. The banks report later this week starting with BMO and Bank of Nova Scotia, also known as Scotiabank, on Tuesday. The uncertainty triggered by Trump's tariff threats has weighed on bank stocks and the broader Toronto Stock Exchange, due to concerns about the duties triggering a recession. "The potential impact of tariffs on all of these key earnings drivers is likely to dominate the earnings calls this quarter," Scotiabank analyst Meny Grauman said, noting that one key area of interest will be how banks expect provisions to reflect tariff risks. Four of the big six banks - RBC, Scotiabank, CIBC and National Bank - have lost between 2.3% and 6% so far this year, while the broader Toronto Stock Exchange has gained 3%. TD Bank and BMO have gained 12% and 2.5% respectively. Scotiabank, which sold some of its South American assets recently, is the only bank that has focused largely outside of the U.S., betting on the $1.5 trillion North American trade corridor. Analysts have noted Scotiabank could be more significantly impacted than peers in a tariff scenario, because their diversification strategy was based on growth in North American trade. "We could return to a more positive call if Mexico and Canada are able to negotiate relatively harmless tariffs. Until that happens, we think it will be hard for (Scotiabank's) stock to be a relative outperformer," CIBC analyst Paul Holden said. Sign in to access your portfolio
