Stonecap Securities' Brad Smith, cuts his outlook on the Canadian banking sector as the big...

|By:, SA News Editor

Stonecap Securities' Brad Smith, cuts his outlook on the Canadian banking sector as the big lenders cut loss reserves to near pre-crisis levels even as credit unexpectedly deteriorated in Q3. Smith is reducing the PE multiple he expects the banks to sell for from 11X to 9X. Lowest rated: Bank of Montreal (BMO) and TD Bank. Highest: Scotiabank (BNS).