There is considerable pressure on these banks to continue trend of better-than-expected quarterly financial results
Most of Canada's banks have been reporting better-than-expected quarterly financial results since their second-quarter season kicked off last week, which puts considerable pressure on the remaining banks to continue the trend.
Bank of Nova Scotia and Laurentian Bank of Canada will report their results on Tuesday morning.
Analysts expect Scotiabank, Canada's third-largest bank by assets and by far the most internationally diversified, will report a profit of $1.56 a share, up more than 12 per cent from $1.39 a share last year. The bank has beaten Street expectations for adjusted profit in each of the past five quarters, by as much as 5 per cent.
The bank's international operations will receive particular attention, given the strong recent showing by Mexico's largest banks (Scotiabank has a large operation in Mexico). Analysts also expect an improvement in expenses.
As for Scotiabank's dividend, there are no expectations for a hike this quarter, given that the bank raised its payout last quarter.
Laurentian Bank is expected to report a profit of $1.38 a share, down 5.5 per cent from last year, largely because of a higher provision for bad loans from low levels a year ago.
However, analysts expect Laurentian will raise its quarterly dividend by a penny, to 62 cents a share from 61 cents a share.
David Berman