A roundup of some of the North American equities making moves in both directions today
Royal Bank of Canada shares were down about 1.5 per cent, and Toronto-Dominion Bank stock was up 1.5 per cent, after both banks reported adjusted earnings for the fiscal second quarter that beat analyst views.
The negative reaction to RBC’s results may be tied to the bank reporting loan-loss provisions and expenses that where higher than analysts were expecting. National Bank Financial analyst Gabriel Dechaine, in a note to clients, commented that its earnings were “not a high quality beat.”
Higher interest rates in Canada and the United States helped improve net interest margins (NIM) at both of the banks, as they earned more from loans than they paid out on deposits.
However, RBC gave a cautious outlook for NIM. On a post-earnings conference call, bank executives said NIM is expected to be relatively flat over the next several quarters, given the outlook for interest rates.
More to come