Wed, Aug. 31, 8:28 AM
Wed, Aug. 31, 8:08 AM
Wed, Jun. 1, 9:10 AM
Wed, Jun. 1, 8:52 AM
- National Bank of Canada (OTCPK:NTIOF): FQ2 EPS of C$0.60 misses by C$0.28.
- Revenue of C$1.51B (+0.7% Y/Y) misses by C$40M.
Tue, Feb. 23, 9:24 AM
- National Bank of Canada (OTCPK:NTIOF): FQ1 EPS of C$1.17 beats by C$0.02.
- Revenue of C$1.53B (+4.8% Y/Y) beats by C$60M.
Oct. 27, 2015, 3:03 PM
- Worried about the effect of the energy crash on Canadian lenders, the market is ignoring structural improvements in revenue and loan mix, balance sheet improvements, and profitability, says analyst Kevin Choquette.
- Share prices are lower by about 5% this year even though earnings are up 6% and dividends by 8%. Toss in price-to-book values at their lowest level since during the financial crisis.
- It's a great opportunity to buy, says Choquette, reiterating Outperform ratings on Royal Bank of Canada (RY -0.4%) and Bank of Montreal (BMO -0.8%), and upgrading National Bank of Canada (OTCPK:NTIOF -0.3%) to Outperform.
Feb. 19, 2015, 12:27 PM
- "Given the historical relationship between oil prices and the impairment rate for energy-related loans, we expect some mild erosion in these loans' asset quality in the coming quarters," says Moody's David Beattie. Further, revenue from both underwriting and capital markets action could fall thanks to spending cuts by the banks' oil and gas clients.
- More? Consumer credit costs could worsen thanks to slowdowns in the economies of Canada's oil-producing regions.
- Direct loan exposures to the energy sector vary by bank, says Moody's, but Scotiabank (BNS -1.3%) and RBC (RY -1%) are particularly vulnerable.
- On the positive side, the size and diversity of Canada's Big Six function as "shock absorbers" against rising energy-related credit costs, and the fall in the loonie acts as a "natural hedge" by cutting costs and limiting the impact on oil producers whose product is priced strictly in appreciating greenbacks.
- The rest of the Big Six: Bank of Montreal (BMO -1%) CIBC (CM -1.3%), TD Bank (TD -1.3%), National Bank of Canada (OTCPK:NTIOF -0.8%).
Dec. 12, 2014, 10:04 AM
- "The baby has been thrown out of the bathwater with this latest market selloff and it may be time to start getting our feet wet and add in more exposure," says Gluskin Sheff's David Rosenberg.
- Some metrics according to Rosie: Canada's lenders are trading at a 30% discount to the S&P/TSX index based on trailing P/E, and are also at a discount to U.S. banks ... This at the same time they're offering a 100 basis point dividend yield premium to the TSX and a 150 basis point premium to 10-year Canadian government paper.
- The only other time in the last 15 years this combination occurred was in 2012, which was followed by a period of outperformance for the group, he says.
- In other news, Credit Suisse buys the dip in Bank of Montreal (BMO +0.3%), upgrading to Outperform.
- The rest of the group: Scotiabank (BNS -0.4%), RBC (RY -1.1%), CIBC (CM -1.4%), TD Bank (TD -0.4%), National Bank of Canada (OTCPK:NTIOF -1.2%).
Aug. 8, 2014, 5:25 PM
- Canada’s six biggest banks - Toronto-Dominion Bank (NYSE:TD), Royal Bank of Canada (NYSE:RY), Bank of Nova Scotia (NYSE:BNS), Canadian Imperial Bank of Commerce (NYSE:CM), Bank of Montreal (NYSE:BMO) and National Bank of Canada (OTCPK:NTIOF) - had their outlooks cut to negative from stable by Standard & Poor’s because of regulatory changes that could affect bondholders.
- S&P says the outlook revision reflects its "expectation of reduced potential for extraordinary government support arising from implementation of the proposed new elements of the resolution framework for Canadian banks."
Jun. 11, 2014, 11:50 AM
- Affirming the ratings of Canada's largest banks, Moody's cuts their outlook from stable to negative, thanks to the government's plans to implement a "bail-in" regime (i.e., creditors to take a haircut) for systemically important lenders.
- "The government's intentions are clear, and if a legislative framework permitting bail-in can be implemented, it will likely be negative for creditors," says David Beattie from Moody's.
- Among those affected: RY, TD, BMO, BNS, CM, NTIOF.
May 1, 2014, 9:42 AM
Nov. 12, 2013, 8:05 AM
- "The fact that these hikes always seem to be on the horizon but never get closer makes them a difficult catalyst on which to rely," says CIBC's Robert Sedran in a cautious note about the Canadian banks. Sedran had assumed net interest margins would stabilize in fiscal 2014, but it now looks like any BoC rate hikes may not come until 2015.
- With FQ4 earnings for the Big Six coming up, Sedran is expecting sequential declines in EPS, with the exception being TD Bank thanks to a big insurance-related charge in FQ3. Analyst forecasts for average Y/Y earnings growth is 8.3%
- The rest of the Big Six: Scotiabank (BNS), Bank of Montreal (BMO), CIBC (CM), Royal Bank (RY), National Bank (NTIOF).
Aug. 26, 2013, 12:07 PM
- The lenders have a long history of boosting dividends as a sign of financial health and to please their income-hungry investors, but only the two smallest - Imperial Bank (CM) and National Bank (NTIOF.PK) - hiked payouts last quarter. The other of the "Big 6" - RBC (RY), TD Bank, Scotiabank (BNS), and BMO - failed to raise their dividends after results either just matched or fell short of estimates.
- TD Bank has the biggest expectations, about a 5% hike, while the others are expected in the 2-4% range. Bank of Montreal could be the exception, with it's own financial services analyst John Reucassel suggesting no increase in the dividend, but instead a return of capital through the repurchase of 4M shares.
- Banks results are expected to be weighed down by increases in loan-loss provisions thanks to a moderating housing market.
Aug. 13, 2013, 4:20 PM
- A more severe-than-anticipated downturn in the housing market could pressure the banks' risk-weighted assets and regulatory capital ratios, says Fitch, noting the pro-cyclical nature of Basel measures could exacerbate the effect of losses on residential mortgages.
- It's the same old story - Soros calls it reflexivity - in which rising home prices give the appearance of low LTV levels and boost capital ratios. The whole process works in reverse should home prices decline. The pressure on capital ratios will come at the same time rising credit losses hit earnings.
- Fitch does note the banks appear to be in good shape to withstand just a moderate housing price shock.
- Those called out by the agency: TD, RY, BMO, BNS, CM, NTIOF.PK.
Jan. 28, 2013, 1:45 PM
Six Canadian banks get a one-notch downgrade from Moody's as high levels of consumer debt and bubbly housing prices leave the lenders "more vulnerable than in the past." The agency also notes banks' reliance on "confidence-sensitive wholesale funding, which is obscured by limited public disclosure." Among those cut: BMO, BNS, CM, TD.| Jan. 28, 2013, 1:45 PM | 18 Comments
Dec. 10, 2012, 11:18 AMForget bank of the year, how about banking system of the year? Canadian lenders buck the global trend of pay cuts, Royal Bank of Canada (RY) and National Bank (NTIOF.PK) leading the way with an 11% jump in bonus pools. Scotiabank (BNS), TD Bank, and Bank of Montreal (BMO) also show increases, but Imperial Bank (CM) sees a reduction in incentive pay. | Dec. 10, 2012, 11:18 AM | 4 Comments