Canadian Banks Earnings Report Comparison TD, RY, CM, BMO, BNS, EQB, NA

Intro hello everybody it's yashar here back again with another video and in this video I'm going to summarize the Canadian Bank stocks earnings report and compare these reports for the seven largest publicly traded banks in Canada I divided these earnings report into five categories of great good okay bad and disaster depending on the numbers and financial figures reported in the earnings of each bank I personally invested in two Canadian banks at the moment TD Bank and EQ bank and that's why I read the earnings report of Canadian Max carefully and follow their news I will start with EQ Bank as the EQ bank seventh largest Canadian bank with a market cap of almost 2.5 billion Canadian dollar and it is the smallest bank by market cap in this list I think the earnings report was actually great I already covered the earnings of EQ Bank in detail in a separate video on the channel so if you want the details you can watch my recent video on EQ Bank earnings overall they reported great growth and profitability numbers in pretty much all aspects of their business adjusted q1 Revenue was was up 40 percent year-over-year adjusted net interest income was up 45 percent year over year EQ Bank customers up 26 percent year over year and deposits were up 12 percent year over year they're adjusted uh return on Equity is 16.9 percent which I believe is an all-time high for the company in terms of the risk management common Equity type ratio is an important parameter cet1 ratio basically Compares a bank Capital against its risk weighted assets to determine its ability to vital stand financial distress the regulator recently increased the minimum c81 ratio for banks in Canada and now effectively from February 2023 the cit1 ratio requirement is set to be 11 in terms of the risk management the total Capital ratio of EQ Bank was 15.5 percent with the cet1 ratio at 14 which is healthy another important profitability metric that I look like to look for a bank is net interest margin which is an indicator that measures the net interest income Financial from generates from credit products like loans and mortgages in summary a positive net interest margin or Nim suggests that a bank operates with a positive profit while a negative figure implies investment in efficiency the Nim of EQ bank is up to 1.92 or 9 basis point year over year which is really good as you can see here the increase the your their Nim consistently in the last five years which I like to see this trend for equivalent they also increase their dividend yet again by six percent quarter over quarter or 28 year-over-year they basically continue to increase this dividend every single quarter by six or seven percent all in all solid numbers across the board and I think EQ Bank earnings report was definitely great and deserved to be the top of the categories in this list valuation wise equivalent currently trades for a Price to Book ratio of 0.1.05 5 which is still lower than its five year average of 1.1 it basically trades at its boot value at the moment which is in my opinion a very good time to invest in this growing Canadian Bank National Bank the second learning support that I'm going to look into was the earning report of National Bank National Bank is the sixth largest Canadian bank with a market cap of almost 33 billion Canadian dollar and I think their earnings report was good three important Matrix in this in the highlights of their earnings report diluted earning per share was down six percent year-over-year return on Equity was also down from 20.7 to 17.5 percent is still a good number and their CET fund ratio is at 13.3 percent the mayor is under the diluted EPs and net income was lower this year was simply because of the higher Provisions for credit's losses which they mentioned is a reflecting of deterioration in macroeconomic factors so the reduction in EPs and net income was simply because increasing their Capital ratio to manage the risks other than increasing ct1 ratio the revenue itself was barely up year over year which I don't really like it much revenue was up only two percent year over year it means National Bank growth was extremely slow which is a little bit concerning one thing I liked in this report was that their net interest margin was up to 2.09 percent from not 1.93 last year which is great they also raised their dividend to one dollar and two cents from 97 cents per quarter which is again good for shareholders while it feels like their online platforms are a bit outdated compared compared to the competition I I like National Bank I use their self-directed brokerage account myself and I think they still have a lot of room to grow and expand their business in future overall not really an amazing report like EQ bank but it was overall better than expectations especially in terms of net interest margin expansion so I think it's fair to say that earnings report of National Bank was overall a good overall good in this quarter valuation wise National Bank currently trades for a Price to Book ratio of 1.59 which is still lower than its five year average of 1.79 in my opinion National Bank is not optically cheap like EQ rank but it is a slightly undervalued here CIBC is CIBC the fifth largest Canadian bank with a market cap of 52 billion Canadian dollar and the next bank that I will recap their earnings and I think their earnings report was bad I guess it wasn't disasters like their previous reports but it is still bad they increase their provision for credit losses on their loans like other Banks which cause reduced earnings for this quarter four main metrics Revenue was up six percent here over here which is good at just that EPS was down four percent year over year at just that return on Equity was down from 15.2 percent to 13.9 percent and their common Equity Taiwan or CET fund ratio up slightly over here to just 11.9 percent as you can see CIBC has a lower common equity ratio than National Bank and EQ bank and if Regulators increase their minimum Capital ratio in future CIBC has to put more liquidity aside to increase this ratio which will lead to even weaker EPs and income numbers in the coming quarters they also reported a weak net interest margin of only 1.4 percent which is one of the lowest margins between all Canadian Banks overall I don't really see good numbers here in this report I think this was another weak earnings report for CIBC and overall I don't really think they are in a good shape at the moment valuation wise CIBC currently trades for a price to boot ratio of 1.14 which is lower than this five-year average of 1.39 in my opinion if you factor in growth potential and risks CIBC trades close to its fair value today Scotia Bank Bank of Nova Scotia is the fourth largest Canadian bank with a market cap of almost 80 billion Canadian dollar and I think their earnings report was just okay their diluted EPS was down year over year by over 20 percent they increased their provision for credit losses on their loans like other Banks which caused to reduce earnings for this quarter that adjusted return on Equity is at 12.4 percent which is down from 16.4 percent last year and this number is I think is one of the lowest numbers between all the Canadian banks at the moment the common Equity Tire run is at 12.3 percent and similar to CIBC they may have to raise this ratio if economic condition gets forced in the future quarters despite this not great Matrix they raised their dividend slightly to 1.6 cents per share per quarter the only metrics that I can give them a pass is their net interest margin which is a 2.13 at the moment which is a slightly down from 2.283 last year but at least it is a good margin they didn't report any great number but I think Market expected a total disaster from scotiomank and this report was not a disaster some Market actually liked their report overall this wasn't a good report by Scotiabank but it wasn't a disaster either so I think it's fair to say it was an okay-ish report valuation wise Bank of Nova Scotia currently trades for a Price to Book ratio of 1.16 which is still lower than its five-year average of 1.37 in my opinion Bank of Nova Scotia is slightly undervalued BMO today the next earnings report that I cover is related to Bank of Montreal which is the third largest Canadian bank with a market cap of 82 billion Canadian dollar I think their earnings report was actually bad it wasn't terrible at all negative but it wasn't a good report either they increased their provision for credit losses on their loans like other Banks which cause reduced earnings for this quarter their adjusted diluted EPS was down year over year by almost 10 percent that adjusted return on Equity is also down from to 12 point six percent from 15.7 percent their c81 ratio is at 12.2 percent compared to 16 last year which is not good at all uh however the adjusted net interest margin was up slightly from 1.63 to 1.7 they also see a growth in the deposits asset on the management and overall assets of the company which are good overall some good numbers and some concerning numbers in this report and I think overall this was worse than expected report for so I think Bank of Montreal earnings report was overall bad valuation wise Bank of Montreal currency trades for a Price to Book ratio of 1.14 which is lower than its five-year average of 1.38 in my opinion is a slightly undervalued at the moment TD bank for the next earnings report I will look into TD Bank TD is the second largest Canadian bank with a huge market cap of 145 billion Canadian dollar and I think their earnings report was just okay they had a few one-time expenses during this quarter including the mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition for 134 million dollars they have a front foreign exchange loss related to Stanford litigation settlement for 39 million and also other one-time expenses on an adjusted basis this was one of the few quarters that TD diluted EPS was down year over year by almost five percent they increased their provision for credit losses under loans like other Banks which damage the bottom line results their total deposits were basically flat year over year which is again another concerning number here they're they're adjusted return on Equity is at 14.1 percent which is down year over year on the positive side their ct1 ratio is at 15.3 percent which is pretty good and up here over here and finally their net interest margin is at 2.74 percent which is absolutely amazing I think it's the best Nim between Canadian Banks overall some great numbers here on profitability and risk management and some bad numbers on growth Matrix and also one-time expenses for the business that's why in my opinion this was okay report for TD Bank it wasn't good at all valuation wise TD currently trades for a Price to Book ratio of 1.38 which is still lower than its 5 year average of 1.65 in my opinion if you factor in the quality of TD business and track record of the management team TD is relatively undervalued here the last standings Royal bank (RBC) report I covered today is related to Royal Bank which is the largest Canadian bank and Canadian company with a market cap of 172 billion Canadian dollar and I think their areas report was also good they increase their provision for credit losses and elude and allowance for credit losses like other Canadian Banks but overall their earnings was okay okayish this quarter I would say it's good it was good in this quarter that adjusted diluted EPS was down 11 year-over-year return on Equity was down to 14.9 percent from 18.6 and the common one and the common Equity Tire one or ct1 ratio is at 13.7 percent on the positive side the increaser quarterly dividend is slightly by two percent their net interest margin is at 1.53 which is up slightly over year their total revenue and assets were up here over here which are all good aspects of this report overall I think it was a good report overall for Royal Bank valuation-wise Royal Bank currency trades for a Price to Book ratio of 1.66 which is still lower than its five-year average of 1.91 in my opinion if you factor in the quality of Royal Bank business and track record of the management team Royal Bank is also relatively undervalued here there you Summary table are guys I hope you enjoyed this video and if you enjoyed the video and my coverage of earnings report of Canadian stocks consider subscribing to channel to see similar videos thank you for watching and I hope to see you guys in the next video