{"id":5059,"date":"2015-01-30T16:02:40","date_gmt":"2015-01-30T21:02:40","guid":{"rendered":"http:\/\/olduvai.ca\/?p=5059"},"modified":"2015-01-30T16:02:40","modified_gmt":"2015-01-30T21:02:40","slug":"bmo-rbc-td-bank-downgraded-over-economic-growth-concerns","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=5059","title":{"rendered":"BMO, RBC, TD Bank Downgraded Over Economic Growth Concerns"},"content":{"rendered":"<h3 class=\"title\"><a href=\"http:\/\/www.huffingtonpost.ca\/2015\/01\/30\/barclays-downgrades-bmo-rbc-td_n_6579332.html\" target=\"_blank\">BMO, RBC, TD Bank Downgraded Over Economic Growth Concerns<\/a><\/h3>\n<p>TORONTO &#8211; Barclays has downgraded the stocks of three of Canada&#8217;s biggest banks, citing concerns about the country&#8217;s economic growth.<\/p>\n<p>Analyst John Aiken has downgraded Bank of Montreal (TSX:BMO), Royal Bank of Canada (TSX:RY) and TD Bank (TSX:TD) to underweight, from equal weight.<\/p>\n<p>Aiken says consumer borrowing, the main profit driver for the Canadian banks, is likely to slow down even more than previously expected.<\/p>\n<p>&nbsp;<\/p>\n<p>He says the sharp decline in the price of oil will be a negative for the country overall, with the potential for recession in Alberta offsetting any of the benefits, such as lower gasoline prices.<\/p>\n<p>Aiken also says the Bank of Canada&#8217;s surprise interest rate cut on Jan. 21 will put pressure on the commercial banks&#8217; lending margins, which will hamper their earnings growth.<\/p>\n<p>The central bank reduced its overnight lending rate to 0.75 per cent from one per cent and Canada&#8217;s biggest lenders have only partially passed along the savings, reducing their prime lending rates by only 15 basis points instead of the full 25.<\/p>\n<p>Aiken wrote in a commentary that Barclays doesn&#8217;t anticipate a &#8220;significant uptick&#8221; in demand for consumer loans and said it&#8217;s likely the banks margins will be squeezed incrementally.<\/p>\n<p>&#8220;As a result, our reduced estimates imply low single-digit earnings growth for 2015. &#8221;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>BMO, RBC, TD Bank Downgraded Over Economic Growth Concerns TORONTO &#8211; Barclays has downgraded the stocks of three of Canada&#8217;s biggest banks, citing concerns about the country&#8217;s economic growth. Analyst John Aiken has downgraded Bank of Montreal (TSX:BMO), Royal Bank of Canada (TSX:RY) and TD Bank (TSX:TD) to underweight, from equal weight. Aiken says consumer [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[3049,1838,103,3048,124,1775],"class_list":["post-5059","post","type-post","status-publish","format-standard","hentry","category-economics","tag-bank-downgrades","tag-barclays","tag-canada","tag-canadian-banks","tag-central-banks","tag-oil-price-collapse"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5059","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5059"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5059\/revisions"}],"predecessor-version":[{"id":5060,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/5059\/revisions\/5060"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5059"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5059"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5059"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}