The Financial Post reports in its Tuesday edition that an array of issues ranging from a potential increase in provisions for credit losses (PCL) and the effects of the Bank of Canada's rate cuts on loans to money-laundering troubles are likely to dominate discussions this week and next as the country's top banks release their earnings. The Post's Naimul Karim writes that TD Bank will be the first to release its earnings on Thursday, followed by the rest of the group next week. Most analysts expect the banks to report positive numbers, but some concerns remain as the provisions for credit losses are likely to have increased. Analysts expect BMO in particular to be affected as one of its customers in the United States declared bankruptcy. This could have an "outsized impact" on BMO's credit loss provision in the second half, said Matthew Lee, an analyst at Canaccord Genuity. "Our key focus for the quarter will be on credit as pressure mounts from both commercial and personal banking customers," Mr. Lee said in a note. He expects BMO's PCL to increase by 56 per cent year-over-year to $768-million, which could be a risk to growth expectations. All the Big Six except TD have stable rating outlooks, according to Fitch.
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