Nigel D’Souza, our Financial Services Analyst, was a guest on BNN Bloomberg with Greg Bonnell, discussing his view of the Liberal government’s minority victory and how its proposed tax hikes on banks and insurers will impact the financial sector and shareholders.

“My concern is whether or not this policy measure leads to more oversight or regulation and potentially more taxation for the [banks],” Nigel said. “If the government starts focusing on profit centres or revenue drivers for the banks, such as with banking fees, that could be a multi-year headwind. Hopefully, we don’t see that happening, but so far, there are few details to go on.”

Nigel also discussed his outlook for the banks.

“I think the sector is going to see a couple of headwinds and tailwinds,” he said. “You’re probably going to see benefits from rising interest rates, margin expansion and a recovery in banking fees. But those will be partially offset by higher credit losses after reversals flow through, as well as higher expenses as we get back to a normal cost structure in a post-pandemic world. In total, I think you’re going to see low single-digit earnings growth for the sector.”

Watch the Replay: Liberal tax hike will impact earnings but not economic fundamentals of banks: Investment analyst 

A podcast for aspiring money managers

Srivatsan Prakash just graduated from high school in Toronto and is an aspiring money manager. More than two years ago, he started hosting a podcast called Market Champions. More than 175 episodes later, and after passing 20,000 followers on Apple Podcasts, Anthony Scilipoti, Veritas President and CEO, was his latest guest.

They discussed:

• How Veritas started more than 20 years ago and some of its more successful calls, such as on Nortel Networks;
• Different ways companies can cook the books, the dangers of non-GAAP accounting and weaknesses in Canada’s regulatory environment;
• The difference between a Sell recommendation and a short, as well as Veritas’s approach for evaluating stocks;
• Where investors need to tread carefully in today’s market and areas of opportunity for fundamental long-term investors.

If you know of a student who is interested in investing or money management, please pass along the links to this podcast:

• Spotify - https://open.spotify.com/show/7KVwQ0RsTc6XN49Wg3yp5a
• iTunes/Apple Podcasts - https://podcasts.apple.com/ca/podcast/market-champions/id1450300020
• YouTube - https://www.youtube.com/watch?v=Mpi7LUfXzfg

We wish Srivatsan great success!

MORE FROM VERITAS

A Voice For Investors

The Canadian Public Accountability Board (CPAB) oversees public accounting firms. Please join us for a virtual roundtable with CPAB Thursday as it seeks input on potential changes to the disclosure of regulatory assessments.

To be discussed:

• Should more details of firm-specific inspection findings and audit firm names be provided? Changes resulting from this consultation could impact the perception of audits in Canada and could be useful to support audit committee oversight.

Presenters:

• Anthony Scilipoti, President & CEO, Veritas Investment Research Corporation
• Jeremy Justin, CPAB Chief Risk Officer & Vice President, Strategy

Thursday, September 23, 2021, 1:00 to 1:30 PM EST

This virtual roundtable will be appropriate for professional investors and users of financial statements. Please email Carmela for the event invite.

Veritas 9th Annual Great Canadian Real Estate Conference
After the Pandemic: Consequences & The New Reality

It’s time to dig into the truth about what’s happening in Canada’s housing and commercial real estate markets.

Tickets are selling fast for the most relentlessly honest housing and commercial real estate conference in the country.

For $149, you can participate live online and will get full access to replays. We will confirm more guests and provide a detailed agenda soon.

Online Thursday, October 7, 2021
9 AM to 5:00 PM EST

Find Out More and Get Your Tickets