“What’s going to happen with the Delta variant, it may pause things for a month or two as we have to work through and make sure we don’t overwhelm the health system. It’s a little concerning to see the numbers,” he said.
“But that will not, I think, upend the majority of the momentum we have. So still very positive about the continued progress on reopening the economy through the next 12 to 24 months.”
Along with the impacts of Covid-19 variants, he said the bank is watching other challenges to global growth including the inconsistent global vaccine rollout, supply chain disruptions, rising geopolitical risk and continued global travel restrictions.
The bank, however, is encouraged by economic indicators such as rising credit card spending and business investments, draws on operating working capital lines and the growth of term asset lending.
“You’re seeing all the signs of economic confidence,” said McKay.
The bank has also seen significant mortgage growth, up $37 billion year over year including over $9 billion in the third quarter, a growth trend that McKay said he expects to continue, though at a slower rate than what’s happened over the “exceptional” last year.
Rising mortgage loans have coincided with a big spike in home prices, but McKay said the bank isn’t worried about the quality of its credit book so much as the long-term macroeconomic issues.
“Where I do worry,” he said, “is the more cash flow that consumers are putting in to housing stock, the less is available to drive the economy. So I think all policy-makers are worried partly as well about long-term economic drag from that much cash flow going into servicing housing.”
He stopped short of commenting on any specific housing policy proposals put out in the election, which have covered everything from banning blind bidding and foreign homebuyers to rental subsidies and supply commitments, saying that policies are required that balance the needs, prosperity, and happiness of Canadians.
For now, mortgage loans helped boost RBC earnings, though the bank saw much bigger gains from the further winding down of its provisions for credit loss.
Earnings came in at $4.3 billion, or $2.97 per diluted share in the quarter, up from $3.2 billion or $2.20 per diluted share in the same quarter last year.
The bank reported a $540 million reversal on its provisions for credit losses in the quarter ending July 30, compared with the $675 million it set aside for losses last year.
Revenue totalled $12.8 billion, down from $12.9 billion last year.
Adjusted earnings per share totalled $3 per diluted share for the quarter compared with an adjusted profit of $2.23 per diluted share a year earlier.
Analysts on average had expected a profit of $2.71 per share, according to financial market data firm Refinitiv.
The credit loss provisions were a key driver of the analyst beat, said John Aiken, the head of research in Canada for Barclays, in a note.
“Provisions were significantly below expectations on both a performing and impaired basis, which we estimate added roughly $0.30 per share to earnings. Impaired loan balances were down across all geographies with a significant drop off in new formations.”
While the earnings were roughly in line with expectations outside the boost from provisions, Aiken said he was encouraged that the bank showed strength in higher-multiple businesses like retail banking and wealth management.
RBC said its personal and commercial banking business earned $2.11 billion, up from $1.37 billion a year ago, helped by a reversal in its provisions for credit losses.
Wealth management reported a profit of $738 million compared with $562 million in the same quarter last year, while RBC’s insurance business earned $234 million, up from $216 million a year ago. The bank said in a release that wealth management growth was “mainly due to higher average fee-based client assets reflecting market appreciation and net sales.”
Assets under administration in wealth management were $1.29 trillion while assets under management were $975.6 billion, both up from the previous quarter and year.
RBC’s capital markets arm earned $1.13 billion, up from $949 million in the same quarter last year, helped by the reversal in its provisions for credit losses and record corporate and investment banking revenue.
Investor and treasury services saw net income of $88 million, up from $76 million a year ago.
The bank announced that its board of directors declared a quarterly common share dividend of $1.08 per share, unchanged since Q1 of 2020.
TORONTO – Canada’s main stock index was up more than 250 points in late-morning trading, led by strength in the base metal and technology sectors, while U.S. stock markets also charged higher.
The S&P/TSX composite index was up 254.62 points at 23,847.22.
In New York, the Dow Jones industrial average was up 432.77 points at 41,935.87. The S&P 500 index was up 96.38 points at 5,714.64, while the Nasdaq composite was up 486.12 points at 18,059.42.
The Canadian dollar traded for 73.68 cents US compared with 73.58 cents US on Thursday.
The November crude oil contract was up 89 cents at US$70.77 per barrel and the October natural gas contract was down a penny at US2.27 per mmBTU.
The December gold contract was up US$9.40 at US$2,608.00 an ounce and the December copper contract was up four cents at US$4.33 a pound.
This report by The Canadian Press was first published Sept. 19, 2024.
Losing a loved one is never easy, and the legal steps that follow can add even more stress to an already difficult time.
For years, families in Vancouver (and Canada in general) have struggled with a complex probate process—filled with paperwork and legal challenges.
Thankfully, recent changes to Canada’s probate laws aim to make this process simpler and easier to navigate.
Let’s unearth how these updates can simplify the process for you and your family.
What is probate?
Probate might sound complicated, but it’s simply the legal process of settling someone’s estate after death.
Here’s how it works.
Validating the will. The court checks if the will is legal and valid.
Appointing an executor. If named in the will, the executor manages the estate. If not, the court appoints someone.
Settling debts and taxes. The executor (and you) pays debts and taxes before anything can be given.
Distributing the estate. Once everything is settled, the executor distributes the remaining assets according to the will or legal rules.
Probate ensures everything is done by the book, giving you peace of mind during a difficult time.
Recent Changes in Canadian Probate Laws
Several updates to probate law in the country are making the process smoother for you and your family.
Here’s a closer look at the fundamental changes that are making a real difference.
1) Virtual witnessing of wills
Now permanent in many provinces, including British Columbia, wills can be signed and witnessed remotely through video calls.
Such a change makes estate planning more accessible, especially for those in remote areas or with limited mobility.
2) Simplified process for small estates
Smaller estates, like those under 25,000 CAD in BC, now have a faster, simplified probate process.
Fewer forms and legal steps mean less hassle for families handling modest estates.
3) Substantial compliance for wills
Courts can now approve wills with minor errors if they reflect the person’s true intentions.
This update prevents unnecessary legal challenges and ensures the deceased’s wishes are respected.
These changes help make probate less stressful and more efficient for you and other families across Canada.
The Probate Process and You: The Role of a Probate Lawyer
(Image: Freepik.com)
Working with a probate lawyer in Vancouver can significantly simplify the probate process, especially given the city’s complex legal landscape.
Here’s how they can help.
Navigating the legal process
Probate lawyers ensure all legal steps are followed, preventing costly mistakes and ensuring the estate is managed properly.
Handling paperwork and deadlines
They manage all the paperwork and court deadlines, taking the burden off of you during this difficult time.
Resolving disputes
If conflicts arise, probate lawyers resolve them, avoiding legal battles.
Providing you peace of mind
With a probate lawyer’s expertise, you can trust that the estate is being handled efficiently and according to the law.
With a skilled probate lawyer, you can ensure the entire process is smooth and stress-free.
Why These Changes Matter
The updates to probate law make a big difference for Canadian families. Here’s why.
Less stress for you. Simplified processes mean you can focus on grieving, not paperwork.
Faster estate settlements. Estates are settled more quickly, so beneficiaries don’t face long delays.
Fewer disputes. Courts can now honor will with minor errors, reducing family conflicts.
Accessible for everyone. Virtual witnessing and easier rules for small estates make probate more accessible for everyone, no matter where you live.
With these changes, probate becomes smoother and more manageable for you and your family.
How to Prepare for the Probate Process
Even with the recent changes, being prepared makes probate smoother. Here are a few steps to help you prepare.
Create a will. Ensure a valid will is in place to avoid complications.
Choose an executor. Pick someone responsible for managing the estate and discuss their role with them.
Organize documents. Keep key financial and legal documents in one place for easy access.
Talk to your family. Have open conversations with your family to prevent future misunderstandings.
Get legal advice. Consult with a probate lawyer to ensure everything is legally sound and up-to-date.
These simple steps make the probate process easier for everyone involved.
Wrapping Up: Making Probate Easier in Vancouver
Recent updates in probate law are simplifying the process for families, from virtual witnessing to easier estate rules. These reforms are designed to ease the burden, helping you focus on what matters—grieving and respecting your dead loved ones’ final wishes.
Despite these changes, it’s best to consult a probate lawyer to ensure you can manage everything properly. Remember, they’re here to help you during this difficult time.
TORONTO – Canada’s main stock index was higher in late-morning trading, helped by strength in energy stocks, while U.S. stock markets also moved up.
The S&P/TSX composite index was up 34.91 points at 23,736.98.
In New York, the Dow Jones industrial average was up 178.05 points at 41,800.13. The S&P 500 index was up 28.38 points at 5,661.47, while the Nasdaq composite was up 133.17 points at 17,725.30.
The Canadian dollar traded for 73.56 cents US compared with 73.57 cents US on Monday.
The November crude oil contract was up 68 cents at US$69.70 per barrel and the October natural gas contract was up three cents at US$2.40 per mmBTU.
The December gold contract was down US$7.80 at US$2,601.10 an ounce and the December copper contract was up a penny at US$4.28 a pound.
This report by The Canadian Press was first published Sept. 17, 2024.
