Canada’s big banks are expected to deliver another strong performance when they report third-quarter earnings this week, but money managers and analysts are wary that any missteps could mean volatility for their high-flying shares.
Canada’s major lenders have navigated a shifting tariff landscape, weak economic growth and a sluggish recovery in the housing market so far this year, seemingly with ease. Their resilience has driven their shares higher, upping the ante to impress Bay Street with their results.
“The biggest risk at a juncture like this isn’t so much what the actual results are because they’re going to be good and they’re going to be record-breaking, but it could be, ‘Has the bar been set too high?’” said Brian Madden, chief investment officer with First Avenue Investment Counsel. His fund owns TD Bank, Royal Bank and BMO. …