11:49 AM EST, 11/12/2025 (MT Newswires) -- In its fourth-quarter preview of large Canadian banks, RBC has lowered its fourth-quarter stage 3 (impaired) provision for credit loss (PCL) ratio assumptions, and increased core net interest margin (NIM) estimates.

Analyst Darko Mihelic continues to expect muted loan growth but expect "tractors and deposit mix shifts to provide upside to core NIMs." He believes all large Canadian banks in his coverage (except National) can report stronger results than the most recent consensus view.

BMO and Scotiabank are the most likely to provide better than expected 2026 PCL ratio guidance during fourth-quarter reporting, which could result in positive core EPS revisions. Mihelic's core EPS estimates increase by ~2% on average heading into the quarter.

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