Canadian bank earnings will drop: Fitch

Though Canadian banks outperformed in Q3 2012, they’ll face major headwinds going forward, says a new report by Fitch Ratings.

Read: Canada’s Big Five deliver $7.8 billion

As Financial Post reports, revenues from key businesses such as consumer lending and capital markets are expected to decline over coming quarters.

Fitch says high consumer debt levels from activity such as mortgage borrowing will weigh heavily on banks’ financial results in coming months. It expects retail loan growth to decelerate as the housing market cools, and as new regulations curbs residential lending. Read more.

Read: Ottawa will sacrifice GDP to cool housing and Homes more expensive: RBC

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The staff of Advisor.ca have been covering news for financial advisors since 1998.