Business
RBC downgraded amid higher expenses, ‘unfavourable’ deposit trends
|
|
The Royal Bank of Canada beat analyst expectations for its third quarter, but a string of challenges ahead has led one analyst to downgrade his rating on the stock.
Veritas Analyst Nigel D’Souza downgraded RBC to a reduce rating and lowered his valuation on the stock’s 12-month price target to $122 per share, down from $140.00 per share.
“We are downgrading RY (RBC) to reduce on a downward revision to our outlook for net interest income growth with unfavourable deposit trends continuing to pressure funding costs and higher non-interest expenses weighing on operating leverage,” he wrote in a Friday note to clients.
He explained that the bank’s deposit flows are continuing, though at a slower pace, and said he was concerned that inflationary pressures could lead to a further decline ahead.
D’Souza is also watching for RBC to take a restructuring charge in 2024 – something the bank has suggested is in the cards after promising job cuts to come.
Despite the downgrade, D’Souza still holds a favourable view of RBC’s fundamentals and expects the bank to outperform its peers in the long run.
“We prefer to see a material reduction in expenses and a stabilization in funding costs before turning more bullish on RBC’s near-term outlook,” he added.
Business
Before the Bell: Futures slip as losing month for stocks nears a close – The Globe and Mail
We use cookies and data to
- Deliver and maintain Google services
- Track outages and protect against spam, fraud, and abuse
- Measure audience engagement and site statistics to understand how our services are used and enhance the quality of those services
If you choose to “Accept all,” we will also use cookies and data to
- Develop and improve new services
- Deliver and measure the effectiveness of ads
- Show personalized content, depending on your settings
- Show personalized ads, depending on your settings
If you choose to “Reject all,” we will not use cookies for these additional purposes.
Non-personalized content is influenced by things like the content you’re currently viewing, activity in your active Search session, and your location. Non-personalized ads are influenced by the content you’re currently viewing and your general location. Personalized content and ads can also include more relevant results, recommendations, and tailored ads based on past activity from this browser, like previous Google searches. We also use cookies and data to tailor the experience to be age-appropriate, if relevant.
Select “More options” to see additional information, including details about managing your privacy settings. You can also visit g.co/privacytools at any time.
We use cookies and data to
- Deliver and maintain Google services
- Track outages and protect against spam, fraud, and abuse
- Measure audience engagement and site statistics to understand how our services are used and enhance the quality of those services
If you choose to “Accept all,” we will also use cookies and data to
- Develop and improve new services
- Deliver and measure the effectiveness of ads
- Show personalized content, depending on your settings
- Show personalized ads, depending on your settings
If you choose to “Reject all,” we will not use cookies for these additional purposes.
Non-personalized content is influenced by things like the content you’re currently viewing, activity in your active Search session, and your location. Non-personalized ads are influenced by the content you’re currently viewing and your general location. Personalized content and ads can also include more relevant results, recommendations, and tailored ads based on past activity from this browser, like previous Google searches. We also use cookies and data to tailor the experience to be age-appropriate, if relevant.
Select “More options” to see additional information, including details about managing your privacy settings. You can also visit g.co/privacytools at any time.
We use cookies and data to
- Deliver and maintain Google services
- Track outages and protect against spam, fraud, and abuse
- Measure audience engagement and site statistics to understand how our services are used and enhance the quality of those services
If you choose to “Accept all,” we will also use cookies and data to
- Develop and improve new services
- Deliver and measure the effectiveness of ads
- Show personalized content, depending on your settings
- Show personalized ads, depending on your settings
If you choose to “Reject all,” we will not use cookies for these additional purposes.
Non-personalized content is influenced by things like the content you’re currently viewing, activity in your active Search session, and your location. Non-personalized ads are influenced by the content you’re currently viewing and your general location. Personalized content and ads can also include more relevant results, recommendations, and tailored ads based on past activity from this browser, like previous Google searches. We also use cookies and data to tailor the experience to be age-appropriate, if relevant.
Select “More options” to see additional information, including details about managing your privacy settings. You can also visit g.co/privacytools at any time.
Fed’s Goolsbee Says Traditional Economic View May Cause Overshoot – BNN Bloomberg
Canada assassination claim sparks rare consensus in India’s polarised politics and media – The Guardian
The Art World Loves to Hate Him. He's Building an Empire Anyway – The Wall Street Journal
-
Media15 hours ago
Gen. Milley says he has "appropriate" safety measures after Trump social media threat
-
Art15 hours ago
U of G opens a new space for the arts community to use
-
Art15 hours ago
Gérard Depardieu’s Art Collection Sells for $4.2 Million at Paris Auction
-
Art14 hours ago
A Cartoonist Appreciates the Art at the Metropolitan Museum – The New Yorker
-
News14 hours ago
Justin Trudeau apologises after Nazi veteran honoured in parliament
-
Business16 hours ago
‘We’re not there yet’: Metrolinx CEO won’t provide opening date for troubled Eglinton Crosstown LRT
-
Economy22 hours ago
Chinese social media censored a top economist for his bearish predictions. He now warns that China’s property crisis will take a decade to fix
-
Business14 hours ago
Ottawa rolls out voluntary code of conduct for AI