As you already know, I am a huge fan of the Canadian Bank Stocks. Even though they have mostly traded sideways for the past quarter, I am looking forward to the upcoming reports.
I may be in for a scare if the cost cutting measures and investment banking changes made by Bank of Montreal don’t turn out as planned. However, I am fairly certain the Bank of Nova Scotia (BNS) will report strong growth figures from its international expansion.
It would be prudent to assume that the banks will increase their dividends, as they have over the past many years. Here are some expectations for the upcoming reports from the Globe and Mail:
Three banks â€” TD, Royal Bank of Canada and CIBC â€” are expected to increase their quarterly dividends when they report results, with the bump forecast to be between 8 per cent and 12 per cent.
The analysts’ estimates for the bank earnings are reported to be:
TD Bank reports Thursday and the consensus forecast from analysts has the bank earning $1.27 a share for the three months ended Jan 31. Domestic retail profits are expected to slow slightly from last year’s heady 22-per-cent clip, but still grow at a double-digit pace.
National Bank reports on March 1 and is expected to post $1.31 per share profit. Investors will be looking for some sense of strategic direction from newly-named chief executive officer Louis Vachon.
Bank of Montreal reports March 1 and while the consensus earnings forecast is $1.29, the estimates range widely after a disappointing finish to 2006. Analysts will be trying to determine whether the bank is beginning to regain market share in domestic retail banking while at the same time bringing down costs.
CIBC also reports March 1 and is expected to earn $1.94. The bank picked up retail market share in 2006 and analysts will want to see whether this growth continues; CIBC may also announce a stock split.
Royal Bank reports on March 2, and is expected to earn 98 cents a share. The largest domestic branch network was also the fastest growing in 2006, and there are expectations that RBC’s retail profit growth will slow to the industry’s pace.
Bank of Nova Scotia is up to bat on March 6 and is expected to earn 94 cents a share. International expansion was the biggest driver of growth last year, and that’s expected to continue. Analysts would like to see Scotiabank’s domestic retail network gain market share on rivals.
If these don’t strike your fancy, check out the 14 Highest Yielding Bank Stocks in the USA.