Delta variant may mute Q3 earnings performance at the Big Six banks

Posted by Paul Bagnell,

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For the past two quarters, Canada’s big banks have crushed earnings expectations and their shares have enjoyed sharp post-earnings rallies. They also began releasing large sums of money previously set aside for loans that could potentially go bad – all of which flowed directly to the bottom line.

The rapid spread of the COVID-19 Delta variant, however, may slow down that trend when the banks report fiscal third-quarter results next week.

“When we exited Canadian bank earnings season in early June,” wrote Bank of Nova Scotia banking analyst Meny Grauman in a recent report, “we thought that by the time Q3 reporting rolled around, COVID would be a fading memory.”…read more.