While the personal market growth is slowing, the commercial market is growing at a robust 8% rate with loans experiencing the largest growth. This month we look at the commercial market growth by product, region segment and competitor.
The commercial market is growing at a robust 8.2% compared to 6.5% the previous year. All products except demand deposits are growing at a faster rate than last year. Business loans and non-residential mortgage loans are growing at the fastest rate.
The bank market for commercial deposits varies widely across the country. Quebec, BC and Ontario grew demand deposits over the 12 months ended Q2’18 while ever other Province saw declines in balances. Four regions– Atlantic, BC, Ontario and Manitoba grew term deposits over the last 12 months whereas Alberta, Saskatchewan and Quebec saw declines.
All regions except Atlantic, saw growth in the non-residential mortgage business with Ontario leading at a 14.1% pace.
While the strong economy is the likely driver behind the strong growth, it is unclear whether this growth is sustainable given current uncertainties.