8. DECENT WORK AND ECONOMIC GROWTH

Making sense of the markets this week: December 4, 2022 – MoneySense

Written by Amanda

Also of note, RBC is set to buy HSBC’s Canadian assets. RBC also introduced a DRIP (Dividend Reinvestment Plan) that gives investors the opportunity to automatically reinvest their dividends at a 2% discount to the price of the shares.

TD

The best quarter of the year arguably goes to TD Bank (TD/TSX), which posted strong top and bottom line beats. Earnings of $2.18 per share topped expectations of $2.05, and revenue of $12.247 billion topped estimates just shy of a billion dollars. The company also posted exceptional YOY growth, considering the circumstances, with earnings increasing by 5.6% and revenue increasing by 8.1%. It also bumped dividends by 8%.

CIBC 

CIBC (CM/TSX) posted a weaker quarter than previously, with revenue coming inline with estimates but earnings per share of $1.39 missed estimates of $1.72 by a wide margin. On a YOY basis the company reported a 6% increase in overall revenue and a 17% dip in earnings per share. The company chipped in with a small, 2.4% raise to the dividend.

BMO

The Bank of Montreal (BMO/TSX) reported revenue of $10.57 billion, which came in well above expectations. And earnings per share of $3.04 fell just $0.03 shy. Year over year, the company reported a 2.1% increase in earnings and a 24.3% bump in revenue. Much like the other banks (BNS aside) it raised the dividend by 3%. 

National Bank

National Bank (NA/TSX) missed on both top- and bottom-line estimates in the third quarter. Earnings of $2.08 per share came in below the expected $2.24, and revenue of $2.429B missed by around $50 million. On the YOY, it posted strong high single-digit growth in both revenue and earnings. The company bumped the dividend by 5% in the quarter.

Overall reports for Canadian banks

It was a strong quarter overall from Canada’s banks, and slower growth was to be expected.

In terms of provisions for credit losses, here are the quarter over quarter increases for each bank: 

  • BMO: 84%
  • CIBC: 79%
  • TD: 75.7%
  • RY: 12%
  • BNS: 28.3%

The dividend increase scoresheet:

Source: news.google.com

About the author

Amanda

Hi there, I am Amanda and I work as an editor at impactinvesting.ai;  if you are interested in my services, please reach me at amanda.impactinvesting.ai