While Canadian banks continue to be the envy of their global peers, regulatory demands, and a fragile global economy will still make the next year a challenging one, says PwC in its annual review of the banking industry. The PwC report notes that the big six banks continued to show strong earnings and Tier I capital growth over the past year and indeed since the financial crisis. These capital ratios range from 12% to 14.7% and position the banks well for upcoming regulatory changes. This was achieved in spite of a continued soft global economy and several acquisitions made by the banks, some without diluting shareholders. "Last year Canadian banks presented solid results, primarily thanks to their strong retail banking businesses and growth in loan portfolios," says PwC's Canadian financial services leader Diane Kazarian. "However, 2012 may see slowing growth in consumer credit markets and continued pressure on margins as banks battle for market share."
http://www.newswire.ca/en/story/928089/2012-shaping-up-to-be-a-demanding-year-for-canadian-banks-regulatory-demands-and-narrowing-domestic-growth-prospects-will-challenge-bank-performance-p