Banking Sector Worries Ease Ahead of Q1 Results, but Relief Still a Ways Off

Stock markets may be hovering around record highs internationally, but Canadian bank shares haven’t seen as much momentum as they head into first-quarter earnings results this week. The sector has been lagging on concerns of sluggish loan growth, risks to existing loan portfolios and a range of other headwinds including changes to tax exemptions and capital requirements. Some of the biggest fears are easing, but analysts say a turnaround isn’t expected any time soon. “After many quarters of bearishness, we are getting much more constructive on the outlook for Canadian banks,” said Scotiabank analyst Meny Grauman in a client note....