Edition:
India

RBC Sees Provisions For Impaired Loans To Trend Higher Toward End Of 2020, Early 2021


Wednesday, 27 May 2020 

May 27 (Reuters) - Royal Bank of Canada ::RBC CEO SAYS WHILE HOUSING MARKET RECOVERY WILL BE GRADUAL AT FIRST, RISK OF A SHARP NEAR-TERM PRICE DECLINE IS LOW - CONF CALL.ROYAL BANK OF CANADA STRESS TESTS SHOW EVEN UNDER SEVERE SCENARIO, CAPITAL WILL REMAIN ABOVE MINIMUM LEVELS, CAN CONTINUE PAYING DIVIDEND - CONF CALL.RBC SAYS ABOUT 90% OF Q2 OIL & GAS PROVISIONS WERE RELATED TO COMPANIES STRUGGLING TO RECOVER FROM 2015 DOWNTURN - CONF CALL.RBC EXPECTS ELEVATED DELINQUENCIES, INSOLVENCIES WHEN CLIENT RELIEF PROGRAMS WIND DOWN - CONF CALL.RBC EXPECTS WEAK ECONOMIC OUTLOOK TO HIT CREDIT CARDS, PERSONAL LENDING PORTFOLIOS MORE ACUTELY - CONF CALL.RBC EXPECTS PROVISIONS FOR IMPAIRED LOANS TO TREND HIGHER TOWARD END OF 2020 AND EARLY 2021 - CONF CALL.RBC EXPECTS FY2020 MORTGAGE ORIGINATIONS AT 80-85% OF FY2019; SEES NATIONAL HOME PRICES DOWN 7%, RECOVERY TO TAKE ABOUT TWO YEARS - CONF CALL.RBC SAYS ROE TO BE SUPPRESSED AS RISK-WEIGHTED ASSETS REMAIN ELEVATED, BUT WILL RETURN TO PRE-COVID LEVELS IN 2022 - CONF CALL.