Markets ended the day moderatley lower with the S&P 500 down 0.2% and Toronto down 0.1%.
Penny stock Ceapro was up 44% after releasing Q1 earnings.
CIBC and TD reported earnings today and, as expected, their earnings were sharply lower due to much higher loan loss provisions. At the end of the day, those provisions are a forecast and it’s far from clear what level of loan losses will actually occur.
Canadian Western Bank reports early Friday morning. The provision for credit losses there is certainly hard to guess. As a smaller less diversified bank it is certainly possible that the loan losses will wipe out the earnings this quarter. Historically, their actual loan losses have been low and they are known as conservative lenders. But the pandemic, combined with recent ultr-low oil prices, brings them into uncharted waters. However, they may also have some good news in terms of their migration to a more advanced (and advantageous) method of calculating their risk-weighted equity.