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RY - Royal Bank Of Canada News Story

C$94.19 -0.2  -0.2%

Last Trade - 3:45pm

Large Cap
Market Cap £79.18bn
Enterprise Value £218.15bn
Revenue £27.17bn
Position in Universe 1st / 2662

UPDATE 1-Canada's big banks field half a million mortgage deferral requests

Fri 3rd April, 2020 3:58pm
(Adds background)
    April 3 (Reuters) - Canada's biggest banks have received
nearly half a million requests from homeowners to hold off
mortgage payments as the economic fallout from the COVID-19
pandemic deepens, according to the Canadian Bankers'
    Since the banks announced a plan to provide financial relief
over two weeks ago, almost 500,000 requests to skip or defer
mortgage payments have been completed or are being processed, up
from 213,000 on March 26, according to a statement
 from the association. 
    The delay in mortgage payments comes at a time when Canadian
banks are seeing subdued earnings growth due to lower margins,
increasing loan loss provisions and volatile performance in
their capital markets divisions. 
    The "big six" lenders - Royal Bank of Canada  RY.TO , TD
Bank  TD.TO , Scotiabank  BNS.TO , Bank of Montreal  BMO.TO ,
CIBC  CM.TO  and National Bank of Canada  NA.TO  - announced the
coordinated effort on March 17 to offer mortgage relief to
customers suffering pay disruption as businesses grind to a
    While homeowners can ask for up to a six-month deferral, it
could cost them additional interest. 
    "The country's six largest banks have deferred more than 10%
of the mortgages in their portfolio," the statement said.
     Cash freed up for Canadians from deferrals completed so far
is about $663 million per month, or nearly $2 billion per
quarter, and this number will increase over the coming weeks,
the association said. 
    A surge in deferrals usually points to a short-term
liquidity crunch for lenders, but bigger banks are
better-positioned to weather such a spike. 
    To meet demand for deferrals and loans, Canada's biggest
banks can access government liquidity support, including
security purchases and also draw down from capital buffers. 
    On Thursday, Toronto-Dominion Bank  TD.TO  Chief Executive
Officer Bharat Masrani said the bank has approved 60,000 or
"virtually all" the requests for mortgage deferrals received so
far as part of efforts to ease the impact of the COVID-19
outbreak on borrowers.*:nL1N2BQ1H4

 (Reporting by Nichola Saminather in Toronto and Bharath Manjesh
in Bengaluru; Editing by Saumyadeb Chakrabarty and Amy Caren
 ((;  outside U.S. +91 80
6749 2703;))
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