Comments on: Q2 Bank Roundup

By: Paul

Paul — Tue, 05 Jun 2012 17:55:14 +0000

I think they are referring to a weighted average LTV of 65% for the whole portfolio. Most banks are already below that.

By: Ralph Cramdown

Ralph Cramdown — Tue, 05 Jun 2012 17:52:39 +0000

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By: The rabid economist

The rabid economist — Tue, 05 Jun 2012 15:45:02 +0000

“65% may not be on the individual basis, but maybe on a portfolio basis”
Yikes. That could be huge! Is this implying that banks would have to move their HELOC loan portfolio to a total LTV of 65%? How exactly would that work without a significant margin call?

By: Robert McLister

Robert McLister — Tue, 05 Jun 2012 14:44:58 +0000

Hi Kyle, These figures are the year-over-year change in overall NIMs for each bank, as provided by Cormark Securities. The negative figures indicate a decrease in net interest margin, not a negative net interest margin. Mortgages are still profitable.
Cheers….R

By: Bay St.

Bay St. — Tue, 05 Jun 2012 13:35:29 +0000

Vachon better think twice before he bites the hand that feeds him. Brokers are an important contributor to National Bank’s volume growth. Brokers add more to the bank’s bottom line than its own road reps.

By: Kyle Green

Kyle Green — Tue, 05 Jun 2012 12:21:36 +0000

Are these net interest margins for their mortgage portfolios? So almost every bank’s mortgage is a loss leader right now?