Sponsored by Cytophage Technologies

Debt Crisis Hits Canadian Households

Canadian consumer debt delinquencies have surged to their highest levels since the 2009 financial crisis, with more than 1.4 million people missing at least one credit payment in the first quarter, according to data released by Equifax Canada on Tuesday.

Non-mortgage delinquency rates jumped 19% year-over-year to 1.43% nationally, even as average debt levels rose a modest 3.8%, the credit monitoring firm said. Total consumer debt reached C$2.55 trillion ($1.9 trillion) in the first quarter.

The sharp divergence between debt growth and missed payments signals mounting financial stress among Canadian households grappling with elevated interest rates and a wave of mortgage renewals at higher rates.

You can read more on the matter here.

What’s going on?

• Ireland Pushes Canada Trade Deal as Trump Tariffs Loom (theDeepDive)

• Carney's Defense Spending Will Add Up to $46 Billion to Economy, CIBC Says (NP)

• Israel has killed senior Hamas leader Mohammed Sinwar, Netanyahu says (Globe)

• NDP Fights for Relevance After Historic Electoral Collapse (theDeepDive)

• Canada sees surge in temporary foreign workers applying to escape abusive employers (TS)

• We’re At The Start of a Great Silver Boom | Ross McElroy & Andy Bowering – Apollo Silver Corp (theDeepDive)

• Trump administration axes Biden-era barrier for crypto in 401(k) plans (CNBC)

• Judge Finalizes Historic $500M Loblaw Bread Price-Fixing Settlement (theDeepDive)

• COVID-19 cases rising as new variant circulates in some parts of the world, WHO says (Globe)

What’s the latest?

• NVIDIA: Nvidia is expected to report fiscal Q1 adjusted EPS of $0.93 on $43.31B in revenue, with Wall Street forecasting Q2 guidance at $0.99 EPS on $45.9B revenue. A key focus will be the $5.5B writedown from U.S. export restrictions on Nvidia’s China-specific H20 chip, and its impact on revenue. Investors will look for signals of continued strong demand for Blackwell GPUs, particularly the GB200, and hyperscaler AI infrastructure spending. Nvidia’s revenue is still expected to grow 66% YoY, though that marks a slowdown from last year’s triple-digit surge.

• Bell: Bell Canada announced it will open six AI data centres in B.C., delivering 500 megawatts of hydro-powered AI compute capacity—the largest such project in Canada. The initiative, called Bell AI Fabric, begins with a 7MW Kamloops facility opening next month in partnership with Groq, whose LPU tech boosts AI inference for large language models. A 26MW centre with Thompson Rivers University will follow by 2026, with two more high-density sites in planning. The project supports Canada’s sovereign, eco-friendly AI infrastructure, and aligns with Bell’s broader goal to build a $1B tech services business through its new brand, Ateko.

• BMO: BMO Financial Group posted Q2 net income of $1.96B, up from $1.87B a year ago, driven by fewer losses in its corporate segment. The bank raised its quarterly dividend by 5% to $1.63 per share. Revenue rose to $8.68B from $7.97B, and adjusted EPS came in at $2.62, beating analysts' forecast of $2.53. However, uncertainty from Trump-era trade tariffs dampened Canadian banking and capital markets income, and BMO increased provisions for bad loans to $1.05B, up from $705M last year. U.S. loan growth remains weak, though April showed early signs of improvement.

• Alberta: Investor confidence in Alberta’s renewables sector has weakened, according to a Pembina Institute report, following policy disruptions like the 2023 moratorium on new wind and solar projects. Although proposed project numbers in 2023 matched those of 2021, cancellations outpaced new proposals, unlike in other markets such as Australia and Texas, which saw growth. Additional uncertainty stems from Alberta’s electricity market overhaul, legal pushback against federal clean energy rules, wind farm siting limits, and new land reclamation rules. The Alberta government maintains it has created a clear and responsible renewables strategy.

• NBC: National Bank of Canada reported Q2 adjusted earnings of $2.85 per share, beating analyst expectations of $2.40, despite a slight dip in net income to $896 million from $906 million a year ago. Revenue rose sharply to $3.65 billion, up from $2.75 billion. The increase was driven by organic growth and the completed acquisition of Canadian Western Bank. Provisions for credit losses surged to $545 million, up from $138 million last year. The bank also raised its quarterly dividend by 4 cents to $1.18 per share.

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The stock market and stuff

• First Majestic Makes Second Major Discovery At Santa Elena In Just A Year (theDeepDive)

• US opens door to retirement savers purchasing crypto tokens (FT)

• BMO’s Credit Losses Surge 50% to Over $1B in Q2 2025 (theDeepDive)

• Pension fund investors demand Elon Musk work 40-hour week at Tesla (FT)

• National Bank Sees Credit Loss Provision Triple in Q2 2025 as CWB Acquisition Bites (theDeepDive)

In the juniors

• Guanajuato Silver Q1 2025: Record Revenue Overshadowed By EBITDA Plunge (theDeepDive)

• Goliath Resources Launches 91 Hole, 40,000 Metre Drill Program At Surebet (theDeepDive)

• New Found Gold Spikes In After Hours Trading After Announcing $69 Million In New Funding (theDeepDive)

• Dolly Varden Commences 35,000 Metre Drill Program At Kitsault Valley (theDeepDive)

FULL DISCLOSURE: Cytophage Technologies is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Cytophage Technologies. The author has been compensated to cover Cytophage Technologies on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.