Industry Lens: Banking—May 2021
This online report examines the short-and medium-term economic and profitability outlook for Canada’s banking industry.
- The banking sector has performed remarkably well during the pandemic.
- Unlike many other industries in this country, Canadian banking was well positioned to transition to different digital platforms.
- Government support programs have allowed individuals and businesses to keep making payments over the past year.
- Banking profits were dominated by performances from the capital market divisions rather than retail and non-depository intermediation divisions (such as credit cards).
- Low interest rates and a heated Canadian housing market helped grow the number of new mortgage accounts.
- An end to government support programs and eventual rise in interest rates would lower revenue growth rates in this industry in the upcoming years.