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(May 21, 2008) The majority of Canadians are failing to stash away any extra cash, despite the increasing risks of a long-predicted economic downturn, according to a new survey conducted for RBC.

Only 22% of respondents have increased the amount they are saving, while 20% said they were spending more. Only half of survey respondents said they had a “rainy day account,” but even then there was often little in it — 55% said their account had about enough to cover one month’s worth of expenses.

“One need only look at the newspapers or television to see that North America is in an economic downturn,” said Ashif Ratanshi, senior vice-president, RBC branch investments and banking. “This is the time for Canadians to reassess their own finances and ensure they are effectively managing their money so that they can withstand any sudden pitfalls or changes in their lives.”

Sixty-five percent of respondents said they relied on various credit facilities to support themselves in case of an emergency. About one million Canadians do manage to sustain a minimum balance of $1,000 in their bank accounts, but 60% of these people consider this paltry sum to be their “safety net.”

It’s little wonder that so many Canadians are failing to save, however. The survey found that 34% claimed they had nothing left over from their paycheque to save, after paying for food, housing and assorted household bills.

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Scotia expands in Peru

(May 21, 2008) Scotiabank’s Peruvian subsidiary has announced the purchase of Banco del Trabajo, the ninth largest commercial bank in that country.

“This transaction represents a unique opportunity for Scotiabank to expand in the growing Peruvian micro-enterprise and consumer finance segments,” said Carlos Gonzalez Taboada, CEO of Scotiabank Peru.

Banco del Trabajo has just a 1% market stake, with $430 million U.S. in assets, but its acquisition will make Scotiabank Peru the top bank in the country’s consumer finance segment and number two in micro-lending. Overall, Scotiabank Peru is the country’s third largest bank.

Scotia has bet heavily on the Latin American market, and has over 26,000 employees, and 1,276 branches and offices in Chile, Costa Rica, Dominican Republic, El Salvador, Guatemala, Mexico, Panama, Peru, Puerto Rico, Venezuela and Brazil.

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Genuity doubles its mining team

(May 21, 2008) Genuity Capital Markets has announced the addition of two new analysts to its mining research team.

Nawojka Wachowiak joins Genuity from BMO, and specializes in basic materials stocks, with a focus on North American base metal equities. Christine Healy is a former analyst at UBS, where she covered equities in both the precious and base metals sectors.

The two new faces double the size of Genuity’s mining research team, joining Tony Lesiak and Michael Gray, who cover precious metals and exploration, respectively.

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EdgePoint gets another partner

(May 21, 2008) Tye Bousada, president of Cymbria Capital Corp., has announced that Geoff Goss has joined Cymbria as Director of Relationship Management. EdgePoint Capital Partners is a wholly-owned subsidiary of Cymbria Capital Corp.

Goss is the fifth partner in Cymbria Capital Corp. The rest are high-profile Trimark alums, Patrick Farmer, Geoff MacDonald, Robert Krembil and Tye Bousada.

EdgePoint has been established for the purpose of carrying on an investment management business.

(05/21/08)