No room for missteps in bank earnings after run-up in lenders’ stocks: fund manager

Canada's major banks are poised for another strong showing in their third-quarter earnings reports, but analysts warn that any missteps could lead to volatility in their high-flying stocks. Despite facing a shifting tariff landscape, weak economic growth, and a sluggish housing market recovery, these banks have managed to stay resilient.

Brian Madden, chief investment officer at First Avenue Investment Counsel, notes that while the actual results will likely be good and record-breaking, the biggest risk lies in whether the bar has been set too high. He expects capital markets businesses at the Big Six banks to grow by around 13 percent annually. Analysts at Jefferies and Canaccord Genuity Corp. remain cautious about current valuations, but do not foresee a major headwind from the current economic situation.