Canadian Big Five hoard reserves as credit outlook decays
Four of the five largest Canadian lenders saw provisions rise, with BMO the only outlier
Large Canadian banks swelled provisions for credit losses (PCL) by C$497 million ($374 million) in the first quarter as their economic forecasts darkened.
Aggregate PCL across the Big Five – calculated as the sum of provisions for impaired and performing loans – rose by almost one-quarter to C$2.5 billion in the three months to end-January. Year-on-year, the aggregate increase was C$654 million, or 35%.
Four of the Big Five saw provisions rise on the quarter, with Bank of Montreal (BMO) the
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