May 23, 2019 / 4:37 PM / 5 months ago

BUZZ-Royal Bank of Canada slips on outlook, credit concerns

** Shares of Canada’s biggest lender down 2% at C$ 103 after co’s cautious outlook on net interest margins

** Says net interest margins expected to be relatively flat over the next several quarters, given the outlook for interest rates

** Co also expects expenses to grow in the low single digits in the second half of 2019

** Says in Q2, provisions for credit losses rose 55.5%

** Credit may be a bit of an overhang this quarter, with higher provisions in what appears to be its domestic energy portfolio mitigating what would have otherwise been a strong beat- Barclay’s analyst John Aiken

** 10 of 16 brokerages rate RY stock “buy” or higher, 4 “hold” and 2 “sell” or lower; their median PT is C$110.50

** TD Bank Group reported a 6.7% rise in adjusted Q2 profit benefiting from strong performance in its retail business

** Shares of RY have risen ~11% YTD, while that of Toronto-Dominion Bank have climbed 10%

** Separately, smaller rival CIBC missed quarterly profit estimates yesterday, adding that it expects zero earnings growth in 2019 (Reporting by Shradha Singh in Bengaluru)

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