Dec. 2, 2014, 10:38 AM
- Bank of Montreal (BMO -2.1%) boosted the dividend and set a 15M share buyback, but missed estimates thanks to weak action in capital markets, with profit of $191M down 12% year-over-year thanks to a 21% decline in trading revenue to $186M. Underwriting and advisory fees, however, climbed 6.4% to $166M.
- "We are inclined to view the quarter as a neutral, given that BMO did beat our estimates in Canada [retail banking] and U.S. [retail banking], but EPS was below consensus."
- Royal Bank of Canada (RY -2.6%), Bank of Nova Scotia (BNS -1.4%), CIBC (CM -0.5%), TD Bank (TD -0.7%).
- Previously: BMO misses estimates, boosts dividend, sets buyback
Dec. 1, 2014, 11:40 AM
- A positive macro outlook for the U.S. (especially compared to the rest of the globe) should boost credit demand, says UBS - upgrading U.S. financials (NYSEARCA:XLF) to Overweight - while the start of a new rate-hike cycle next year bodes well for interest margins.
- UBS's three favored U.S. banks are Bank of America (NYSE:BAC), Citigroup (NYSE:C), and Morgan Stanley (NYSE:MS), but TD Bank (NYSE:TD) also makes the buy list thanks to its large American presence.
- ETFs: XLF, FAS, FAZ, UYG, KRE, VFH, KBE, IYF, IAT, SEF, IYG, FXO, FNCL, KBWB, RKH, QABA, FINU, KRU, RWW, KBWR, RYF, FINZ, KRS
Oct. 17, 2014, 11:32 AM
- "We believe FQ4 earnings weakness is already factored in by the market," says analyst Kevin Choquette, upgrading TD Bank (TD +2.5%) to Outperform with $68 price target. He notes TD is off 12% from its high, the largest pullback of the major banks.
- "We find TD's relative valuation as compelling with negligible P/E multiple premium to the group, and is at the low end of its range despite having one of the highest capital generation rates (RRWA) of the Canadian banks."
Oct. 15, 2014, 1:00 PM| 1 Comment
Aug. 28, 2014, 7:45 AM
Aug. 28, 2014, 7:29 AM
- FQ3 adjusted net income of $2.167B or $1.15 per share vs. $1.584B and $0.82 one year ago.
- Canadian Retail net income of $1.4B up 54%. Net interest income of $2.436B vs. $2.269B; Noninterest income of $2.498B vs. $2.219B; Adjusted noninterest expenses of $2.018B vs. $1.901B.
- U.S. Retail net income of $518M up 4%. TD Ameritrade contributed $69M, up 1%.
- Wholesale Banking net income of $216M up 46%.
- Common Equity Tier 1 Capital ratio of 9.3% up 10 basis points from last quarter.
- Conference call at 3 ET
- Previously: Toronto-Dominion Bank beats by C$0.06, beats on revenue
- TD flat premarket
Aug. 28, 2014, 7:03 AM| 1 Comment
Aug. 27, 2014, 5:30 PM
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."
Jul. 25, 2014, 12:48 PM
- Checking the Q2 results of the big U.S. banks and extrapolating to Canada, CIBC's Rob Sedran says Bank of Montreal (BMO +0.2%) and Royal Bank of Canada (RY +0.2%) are poised to see the largest benefit from trends in commercial lending and capital markets. TD Bank, however, is more exposed to consumer lending, which continues to slow.
- “The weakness in personal lending [at banks in the U.S.] was more than offset by strength in commercial and industrial loan growth, which came in at just over 8%," says Sedran, noting BMO is most exposed to better C&I business in the States.
- For RBC, the bright spot, says Sedran, was U.S. capital markets business performing better-than-expected (how could it not), including robust M&A activity.
Jul. 23, 2014, 12:28 PM
- With big U.S. and European lenders retrenching amid new regulations and tighter capital requirements, Canadian banks have been expanding south of the border whether by acquisition, boosting existing networks, or hiring newly freed-up executives.
- "There has been a vacuum created in the U.S.,” says Dick Bove, "And the Canadians are taking advantage, RBC (RY -0.1%) more so than the others.” RBC - which was forced to sell its U.S. retail network following the financial panic - has turned to investment banking, and has increased its share of the U.S. investment bank fee pool by 3% over past 3.5 years, and now ranks 10th in U.S. equity capital markets underwriting and 11th in high-yield; last month it poached two senior bankers from Citigroup.
- The move by Canadian banks also comes as growth slows at home amid government efforts to slow credit growth to cool a steamy property market.
- Others of interest include: TD Bank, BMO, Scotiabank (NYSE:BNS), and CIBC (NYSE:CM).
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. 22, 2014, 2:55 PM
- TD Bank (TD +2.9%) is considering being the principal tenant for a new Midtown skyscraper across from Grand Central Terminal being developed by SL Green Realty (SLG), reports the WSJ. The developer says the building - named One Vanderbilt - could have 1.6M square feet of space, and drawings show it towering over the nearby Chrysler building.
- The bank's U.S. unit has seen big growth in recent years, and while it has a number of branches in NYC, it has only a small amount of office space. It's not known, says the Journal, if TD is looking at other locations.
- TD's stock is having a big session following its FQ1 results this morning, hitting a new all-time of nearly $49 per share.
- Previously: Strong retail results for TD Bank
May. 22, 2014, 8:04 AM
- Adjusted net income of $1.988B and EPS of $1.09 vs. $1.717B and $0.95 one year ago
- Canadian Retail net income of $1.3B up 12% Y/Y
- U.S. Retail net income of $495M up 15%; excluding Ameritrade, net income of $425M up 13%
- Wholesale Banking net income of $207M falls 6%
- Tier 1 common equity ratio of 9.2% gains 30 basis points from FQ1
- Dividend holds steady at $0.43 per share
- Previously: Toronto-Dominion Bank beats by $0.06
- Press release
- TD no trades premarket
May. 22, 2014, 7:16 AM
May. 21, 2014, 5:30 PM
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