ALSO:
Fitch placed its Canadian bank ratings on Negative Outlook in April (see https://www.fitchratings.com/site/pr/10117236).
Fitch expects that large Canadian banks’ full-year 2020 profitability will meaningfully decline as a result of rapid economic deterioration in 2Q20 due to nation-wide Coronavirus lockdowns. The earnings of seven Canadian commercial banks rated by Fitch fell 50.1% yoy as the banks made unprecedented increases in provisions against performing loans (revenues only fell 4.9% yoy)
Shouldn’t it be from Triple Eh to Double Eh?
ALSO:
Canadian household indebtedness remains elevated, above 175% of disposable income since 2016, with debt service averaging 14.7% of disposable income in 1Q20. Housing price appreciation, an important driver, has tempered amid lower real-estate transaction volume and international travel restrictions dampening non-resident and skilled migrant purchases.