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RBC kicks off round of first-quarter bank earnings amid market volatility

The RBC Royal Bank of Canada logo is seen in Halifax on Tuesday, April 2, 2019. THE CANADIAN PRESS/Andrew Vaughan The RBC Royal Bank of Canada logo is seen in Halifax on Tuesday, April 2, 2019. THE CANADIAN PRESS/Andrew Vaughan
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TORONTO -

Bank earnings kick off today with RBC reporting first-quarter results as investors wait for insights on how financial institutions expect to handle inflation, interest rate hikes and market volatility.

The central banks of Canada and the U.S. are expected to start raising rates in March, so analysts will be watching for any outlook changes from Canadian banks on how they expect the higher rates to play out.

Expenses will be another key trend to watch as wages and other costs rise in the competitive growth environment and as banks invest heavily in technology.

Earnings come as the Canadian bank index has well outpaced the TSX and S&P 500 as investors have shifted from growth stocks such as technology to more value-oriented options like banks, which are now trading at the higher end of their historical trading range.

Dividend increases were the big focus of the last quarterly results, but analysts say they aren't expecting further increases this quarter.

CIBC and National Bank report on Friday, BMO and Scotiabank on March 1, and TD Bank on March 3.

This report by The Canadian Press was first published Feb. 24, 2022.

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