TORONTO—Canada’s big banks are expected to have lowered loan-loss provisions in the third quarter from the prior quarter as U.S. tariffs have likely hurt their loan portfolios less than feared.
Canada’s big six banks are expected to set aside a total of C$5.22 billion in loan-loss provisions for the third quarter, compared to C$6.37 billion in the second quarter, according to data compiled by LSEG.
The banks ramped up provisions over the past few quarters, bracing for potential bad loans in the belief that a possible North American trade war would hurt the economy and cause defaults on commercial loans, credit cards and mortgages….