Forecast: Bank Nonperforming Loans to Total Gross Loans in Canada

In recent years, the ratio of Nonperforming Loans (NPLs) to Total Gross Loans in Canada has shown a general downward trend. As of 2023, the value stood at 0.34. Analyzing the last two years, there was no percentage change in 2023 compared to 2022, both being steady at 0.34. Over the last five years, we observe a compound annual growth rate (CAGR) of 0.16%, indicating a mild but consistent decline in nonperforming loans.

Looking ahead, it is forecasted that the NPL ratio will maintain its current level through 2028, with an overall growth rate of 0.78% in this period. Notably, future trends to watch will include the potential impacts of economic shifts, regulatory changes, and the financial health of key industries, which could influence the trajectory of nonperforming loans.