Author: benjaminp.shaw

A new forecast from RBC Economics says that Canada’s economy is set for real Gross Domestic Product (GDP) growth of 3.1% this year and 3.9% in 2011.

RBC has noted that a peak in stimulus investment, improved credit markets and a recovery in consumer spending are pushing the increase of GDP growth.

Craig Wright, chief economist has noted that recovery has taken a solid root in Canada, which is also due to low interest rates and improved credit markets. He has also gone as far as to say that the strength in the housing market and investment by private sector should provoke additional economic growth.

RBC adds consumer spending is expected to expand next year by 2.8% and business investment by more than 7%.

Looking at the job front, we have RBC saying that the stability in the auto sector and rising commodity prices should be able to bring about gradual improvement. Unemployment rates are expected to average 8.4% in 2010 before falling to 7.7% in 2011.

Among the provinces, RBC expected to see a 4.1% GDP growth rate in Newfoundland and Labrador, 3.6% in Saskatchewan, 3.4% in British Columbia, and 3.3% in Ontario.

Alberta is expected to have a growth rate of 2.5%, however it should grow by 4.4% in 2011.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• RBC Claims Strong Rebound in 2010 (0)
• RBC Economics: Canada on the Path for Recovery in 2010 (0)
• RBC: Lending Costs Set to Go up Late Next Year (0)
• RBC: Canadian Economy On its Way for Growth (0)
• National Bank Financial Group’s Financial and Economic Outlook (0)

Author: mattkiazyk

Interest rates increases are expected to drive the Canadian dollar back up to parity with the U.S. dollar by the summer according to a new report from CIBC World Markets Inc.

This forecast is based on the expectation that the Bank of Canada will be raising its key lending rate in July, which is at least 6 months ahead of the first interest rates raise by the U.S. Federal Reserve.

CIBC sees the loonie rising to $1.02 US by September, before dropping back to 97 cents US by the end of the year.

CIBC ha snoted that the Bank of Canada’s early rate hike is just oen of the main catalysts of the dollar’s rise. Rising commodity prices are also a contributing factor to parity.

With capital markets coming back, the forecast notes that the loonie also stands to gain because the rest of the world considers Canada to have one of the friendliest environments to make foreign acquisitions.

CIBC is not the only bank to see parity for the dollar; Scotiabank and BMO economists have both noted that there is an increasing likelihood to parity.

Nothing is certain however many banks have begun to agree that with rising interest rates coming soon, parity is not too far away as well.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• Bank of Canada Warns That A Strong Loonie Poses a Threat (0)
• Weekly News Watch 16 (0)
• Loonie Rises Higher (0)
• Carney Holding Down Loonie (0)
• Weekly News Watch 17 (0)

Author: keith.ca

Canada’s five biggest banks saw their profits rise by almost two-thirds in the first quarter of 2010, compared to the same period last year when the recession had taken root and any earnings were taken away.

The banks have earned a combined total of $5.09 billion in the three months that ended on January 31st; compared to $2.97 billion in 2009, helped b lower loan losses and a increase in mortgages.

Scotiabank reported last, and it posted a 17% rise in profit, beating analyst estimates. Many of the other banks also came out with higher profits than Bay Street expected; this includes Bank of Montreal (BMO), Toronto-Dominion Bank (TD), and Canadian Imperial Bank of Commerce (CIBC).

Royal Bank of Canada (RBC) was the sole exception as it missed expectations, despite posting the largest profit of %1.5 billion.

These results gave another reason for optimism in a banking industry than those in most other countries as it fared much better. Canada’s banking sector is considered one of the least affected by the 2008 – 2009 credit crisis.

Craig Fehr, a financial service analyst noted that the earnings provided early sign that loans are beginning to stabilize.

With this trend we can only anticipate to see last year’s second quarter to be surpassed just as much as the first.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• Banking Applications Helping You Save Money (0)
• Canadian Banks Overshadow U.S. Banks (0)
• Canada’s Big Banks Have Positive Outlook for the Future (0)
• Record High Revenue for Scotiabank (0)
• Knowing Your Banks: “The Big Six” (2)

Author: Rev Dan Catt

BMO Bank of Montreal announced on March 9^th, 2010 that it will be decreasing its residential mortgage rate; this will take effect as of March 10^th, 2010.

In addition BMO Bank of Montreal also announced that it will be making it easier for Canadians to be mortgage free sooner with the introduction of the new BMO five year fixed rate mortgage, effective March 8^th, 2010

The new mortgage rate will be offering the lowest five year fixed rate at 3.75% with a maximum amortization rate of 25 years.

The new rates are as follows:

©2010 Bank Nerd. All Rights Reserved.

Related posts

• BMO Introduces New Special Rates (0)
• BMO Introduces New Five Year Fixed Rate Mortgage (0)
• TD Canada Trust Announces New Special Fixed Rate Mortgage Offers (0)
• BMO Increases Mortgage Rates (0)
• BMO Decreases Residential Mortgage Rates (0)

Intuit, the creators of QuickTax have given BankNerd.ca one copy for us to give away to our loyal readers. To enter, simply sign up for our Daily Newsletter. All current Daily Newsletter readers are automatically enrolled into the giveaway.

The Prize

QuickTax Standard 2009 “Maximize your refund to get every penny you deserve!”

QuickTax Standard 2009 is ideal for maximizing your deductions and saving more on your taxes.

For more information on QuickTax Standard 2009, click here.

How To Enter

We made it as simple as possible, you have to just sign up for our Daily Newsletter.

Rules

To put yourself in the running to win you need to know the following:

* Sign up for our Daily Newsletter

* ONLY contestants from Canada will be considered.

* Contest finishes on Friday March 19th 2010

* ONLY individuals who have signed up for our Daily Newsletter will be considered.

* Winner will be selected randomly on Saturday March 20th 2010.

* The winner will be emailed and will have to confirm there address.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• No related posts.

Author: caribb

On March 8th, 2 010, WestJet announced it will be launching two new programs to reward travelers who fly with Canada’s preferred airline.

The WestJet Credit Card Program offered in a partnership with Royal Bank of Canada (RBC) and MasterCard, and the WestJet Frequent Guest Program will offer guests the opportunity to earn and accumulate WestJet dollars.

With every WestJet dollar, you can use it as cash towards the purchase of any flight, on any date, to any destination; this includes seat sales.

You can also use WestJet dollars, towards WestJet Vacation packages, which ha a maximum of 500 WestJet dollars per person.

With this rewards program, there are no points, redemption grids, advance booking, blackouts or seat restrictions; there are just dollars off flights and vacation packages.

With RBC’s first MasterCard product offering in Canada, it includes two new cards. The first credit card is the WestJet RBC World MasterCrad, and the second credit card is the WestJet RBC MasterCard.

With each MasterCard, cardholders can earn WestJet dollars on everyday purchases.

The new WestJet programs offer all WestJet guests the opportunity to earn WestJet dollars. The WestJet Credit Card Program will appeal to all types of travellers, while the WestJet Frequent Guest Program reward business travelers or other guest who spend more than $1,500 per year on WestJet flights.

I will be giving an overview of both of these new RBC credit cards, and on another not I would like to point out that RBC is the first Canadian bank to offer both Visa and MasterCard as options to customers.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• WestJet RBC MasterCard Information (0)
• InfoProtector at RBC (0)
• What You Might Not Know Your Bank is Offering (4)
• Weekly News Watch 11 (0)
• Using Your Royal Credit Line at Royal Bank of Canada (3)

Authors: jimmywayne

The Bank of Nova Scotia may be the last of Canada’s big banks to report its first quarter earnings, however it does not lose to its competition.

Scotiabank beat analyst estimates, as profit was $988 million, which is up 17% from the same period a year ago, and ahead of analyst estimates.

Scotiabank has noted that was the equivalent of 91 cents per diluted share or 93 cents on a cash basis, with $3.9 billion in revenue.

According to estimates compiled by Thomson Reuters, analysts had been looking for 88 cents per share in earnings and $3.8 billion in revenue. Scotiabank’s provisions for credit losses increased to $371 million, up from $281 million a year ago, however it is down from $420 million from the previous quarter.

We have Scotiabank performing especially well in its Canadian banking operations, as it showed a net income of $560 million, which is up 28% from the same period a year ago.

Net income from Scotiabank’s international banking operations was $294 million.

With this earnings report, we have all of Canada’s big banks having reported, and with the exception of Royal Bank of Canada (RBC) we have Canada’s big banks coming out with profits ahead of analyst expectations.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• RBC’s Net Income Up 10% (0)
• National Bank’s Profits Rises (0)
• TD Beats Analyst Estimates (0)
• Royal Bank Profits Increase by 24% (0)
• Canadian Banks Overshadow U.S. Banks (0)

Author: Ian Muttoo

The Canadian economy is moving along again with the billions of dollars in government spending. Ottawa is now preparing to bring down its Economic Action Plan, which means that it is time for private sector businesses to take action and begin hiring new employees, investing in new equipment and machinery and boosting productivity.

The questions economists have is whether business activity will be strong enough to keep the economy moving forward.

Economists have said that 2011 will be crucial. Chief economist at CIBC World Markets, Avery Shenfeld has noted that the economy for the coming year is still going to get a lift from government stimulus.

In the budget which was released Thursday, the federal government has said that it expects the economy to grow at a moderate pace over the next four years.

According to the budget forecast, real Gross Domestic Product (GDP) growth is expected to come in at 2.6% for 2010, and 3.2% in 2011. There will be a decline to 3% anticipated for 2010 followed by further declines to 2.8% in 2012 and 2.6% in 2014.

Scotiabank has forecasted Canadian real GDP growth at 3.2% for 2010 and 2.8% for 2011.

Statistics Canada’s latest report on GDP, showed that GDP grew by an annualized rate of 5% in the final quarter of 2009, which is much stronger than economists had anticipated.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• GDP Shows Biggest Increase (0)
• Stock Market Tumbles (0)
• Scotiabank’s Forecast Looks Good (0)
• National Bank Financial Group’s Financial and Economic Outlook (0)
• Gross Domestic Product Shows Growth (0)

Author: GregHickman

Canadian Imperial Bank of Commerce (CIBC) expanded its international presence with acquiring a minority interest in Bermuda based The Bank of N.T. Butterfield & Son Limited.

Under the terms of the transaction, CIBC has invested US$150 million as part of a US$550 million recapitalization of Butterfield. The Carlyle Group and several other institutional investors have invested the remaining US$400 million.

Butterfield’s shareholders will still have the right to participate in the recapitalization by subscribing for additional common shares under a US$130 million rights offering. If this is done, then the size of CIBC’s investment could be reduced by up to US$25 million.

CIBC has provided Butterfield with a commitment letter for a senior secured credit facility for up to US$500 million.

Due to the investment made by CIBC, as of March 2ND, 2010,CIBC owns 22.5% of Butterfield’s equity in the form of common shares and convertible voting preference shares. CIBC will also be nominating 2 of the 12 directors on Butterfield’s Board of Director’s.

CIBC has invested US$26 million indirectly into Butterfield through a private equity fund that has been sponsored by The Carlyle Group.

CIBC committed US$150 million to the Carlyle fund to invest in financial service transactions previously.

Butterfield was established in 1858, and it is the largest independent bank in Bermuda. With assets of US$9.6 billion, Butterfield offers a full range of banking services in Bermuda, Barbados, and the Cayman Islands

©2010 Bank Nerd. All Rights Reserved.

Related posts

• Profit Expected to Take a Hit from Loan Losses (0)
• CIBC Settles ABCP Case (0)
• CIBC Reports Changes to Mortgage Rates (0)
• CIBC Adjusts Mortgage Rates (0)
• Weekly News Watch 8 (0)

Author: sayzey

It is now time for a change, and we have the Bank of Canada wanting to start making plastic notes because plastic bills last longer and are much cleaner than paper notes.

The Bank of Canada has not listed who the supplier will be.

A spokeswoman for the Bank of Canada, Julie Girard noted that the Bank of Canada can not comment on who will be supplying the bills because contractual details are still being made.

She did say that the Bank of Canada does hope to issue plastic notes in about 18 months.

The fact that plastic notes will not be absorbing as much grime compared to paper notes is a huge plus, as it will allow notes to last two to three times longer.

Plastic money has been used in Australia since the 1980s, implementing technology by an Australian firm, Securency.

Securency is part owned by the Reserve Bank of Australia, which is the central bank for Australia.

Securency has noted that there are multiple security features, which make the money hard to counterfeit. One of which is a transparent window that can be any shape or size. The window can be totally clear or partly opaque; on the window itself there is a holograph.

Securency has noted that countries, which use its notes, have much less counterfeiting than countries, which continue to use paper.

©2010 Bank Nerd. All Rights Reserved.

Related posts

• No related posts.