Initiating coverage on Canadian Banks – RBC, TD, BNS, BMO, & CIBC

Canadian large banks well equipped to withstand asset quality issues arising from the COVID-19 pandemic Due to the COVID-19 pandemic, large Canadians banks' earnings will continue to remain under pressure as restricted activities fuels weakness among businesses, leading to credit losses and slower loan growth. Deferrals on loans will remain a key risk amid elevated unemployment and highly levered consumers’ status as most large banks have high retail exposure.