Highest profit margin banks will continue to outperform, says BMO analyst

News Snapshot:

Daily roundup of research and analysis from The Globe and Mail’s market strategist Scott Barlow BMO bank analyst Sohrab Movahedi expects the sector winners – the highest margin banks- to keep on winning, “With Q2/25 behind us, we reflect on three key takeaways from the quarter: (1) Profitability: the “Big 6” delivered an ROE of 12.5 per cent on ROA of 64bps, with capital ratios comfortably above regulatory minimums and higher performing reserve builds; (2) Credit: performing reserve builds (led by Royal Bank of Canada) resulting in elevated PCLs given trade-related uncertainties and a softer economic outlook; and (3) Trading:...