Bank Loan Loss Provisions Up

In this morning’s Globe and Mail, James Bradshaw reports ‘Scotiabank’s fourth-quarter profit slips on higher costs, increased loan-loss provisions.’

In his report, Bradshaw notes that “Provisions for credit losses spiked from ultralow levels last year”.  He goes on to note that “Scotiabank continued to face pressure on its profit margin on loans, with its net interest margin down four basis points”.

So what does this mean for SMB’s access to capital going ahead (even if you don’t bank with Scotia)?  We see at least the following key issues:

  1. Your rates will likely be going up on your next renewal
  2. It may be tougher to qualify for a loan
  3. If you don’t have your ‘ducks in a row’, you can expect to pay even more (see how we can help you)

Let’s talk about your financing requirements, and how we can help: