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BRIEF-RBC Says if Pessimistic Scenario Materializes, Allowances On Performing Loans Could Be Increased By About 18% - Conf Call

Published 2020-12-02, 09:16 a/m
Updated 2020-12-02, 09:18 a/m
© Reuters.

Dec 2 (Reuters) - Royal Bank of Canada RY.TO :

* RBC CEO MCKAY SAYS EXPECTS MORTGAGE GROWTH TO SLOW AS PEN-UP HOUSING DEMAND COOLS AFTER 'EXCEPTIONAL' STRENGTH - CONF CALL

* RBC SAYS TRADING AND 'ELEVATED PACE' OF UNDERWRITING ACTIVITY EXPECTED TO EASE IN 2021 AFTER YEAR OF NEAR-RECORD CAPITAL MARKETS EARNINGS

* RBC DOES NOT EXPECT A SIGNIFICANT SHIFT IN CANADIAN COMMERCIAL LOANS FROM PERFORMING TO NON-PERFORMING STATUS, BARRING 'MATERIAL ADVERSE EVENTS' - CONF CALL

* RBC SAYS 90% OF RETAIL LOAN DEFERRALS EXPIRED, 2% OF THESE ARE DELINQUENT; EXPECTS DELINQUENICES TO RISE IN COMING QUARTERS - CONF CALL

* RBC SAYS NEARLY 90% OF COMMERCIAL, SMALL BUSINESS DEFERRALS EXPIRED, ALMOST ALL HAVE RETURNED TO PERFORMING STATUS - CONF CALL

* RBC GIVING MORE WEIGHT TO DOWNSIDE SCENARIO OF CANADIAN UNEMPLOYMENT RATE ABOVE 9% UNTIL MARCH 2023, 8% HOUSE PRICE DECLINES, DEPRESSED UNTIL LATE 2023 - CONF CALL

* RBC SAYS IF PESSIMISTIC SCENARIO MATERIALIZES, ALLOWANCES ON PERFORMING LOANS COULD BE INCREASED BY ABOUT 18% - CONF CALL

* RBC CEO SAYS 'CAUTION SHOULD RULE THE DAY,' NOT YET TIME TO PUSH REGULATOR TO ALLOW BUYBACKS AGAIN - CONF CALL

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