Contents
Canadian Banks – The Credit Cycle
Summary and Conclusion 2
Bank Exposure/Leverage to Credit & Loan Mix/Concentration 5
Bank Index Performance in Rising Loan Loss Environment 5
Macroeconomic Factors 6
Loan Loss Provisions Through The Credit Cycle 8
Impaired Loans & Coverage Ratios 12
Charts & Tables
Bank Capital Levels 13
Profitability & Revenue Mix 17
Banks Leverage to Credit & Loan Mix/Concentration 23
Bank Index Performance vs. Loan Loss Provisions 41
Macroeconomic Factors 51
Loan Loss Provisions Through Credit Cycle 73
Gross Impaired Loans 103
Net Impaired Loans 111
Impaired Loan Formations 117
Allowance for Credit Losses & Coverage Ratio 123
Appendix 131
Canadian Bank Balance Sheet 132
Deposit/Loan Mix and Capital Ratios 134
Condensed Income Statement 135
Derivative Exposure 136
Securities Holdings – AFS Portfolio 138
High Risk Off Balance Sheet Exposures 141
Bank Pertinent Stock Information 145