Kalkine Media evaluates TSX banking stocks to watch in October

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Highlights:

  • With effect from September 8, 2022, RBC Royal Bank increased its prime rate to 5.45 per cent (by 75 basis points) from 4.7 per cent
  • The dividend growth for Royal Bank of Canada has been reported at 5.56 per cent
  • Canadian Imperial Bank of Commerce reported an increase of nine per cent in net income within a quarter. 

TSX bank stocks cover a large share of the market. An investor should evaluate the stocks before zeroing in and scrutinizing the minutest detail. As of September 21, 2022, TSX bank stocks witnessed a quarter-to-date (QTD) increase of 1.336 per cent. There may be fluctuations daily, so there will be many stocks to keep a close eye on.

Every bank has different operations. So, every bank stock may perform differently. Investors can check the movement of every stock to gain clear insights.

Let us look at some of the TSX bank stocks curated by Kalkine Media®:

Royal Bank of Canada (TSX: RY)

Royal Bank of Canada offers corporate banking, wealth management, commercial banking, personal banking and insurance, and capital markets services. Royal Bank of Canada operates with an employee size of over 92,000.

Currently, the market capitalization for Royal Bank of Canada is C$ 175.035 billion. It pays a quarterly dividend of C$ 1.28, and the dividend growth has been 5.56 per cent in five years.

The earnings per share (EPS) announced by the company is 11.01, and the price-to-earnings (P/E) ratio is 11.40 per cent. In Q3 2022, the bank's net earnings were C$ 3.6 billion, a decline of 17 per cent from the previous year.

National Bank of Canada (TSX: NA)

National Bank of Canada offers wealth management and commercial and personal banking.

National Bank of Canada has a total share of the market capitalization of C$ 29.9 billion. Further, the bank announced a dividend of C$ 0.92. The company's dividend yield was 4.12 per cent. The five-year dividend growth for the National Bank of Canada has been reported at 6.08 per cent.

In Q3 2022, NA reported a net income of C$ 826 million compared to C$ 893 million in Q2 2022. Further, the National Bank of Canada witnessed an increase in its assets by nine per cent, which were calculated at C$ 387,051 million.

Total revenue for the third quarter of 2022 for the National Bank of Canada was reported at C$ 2,413 million. The below graph shows the asset growth for the National Bank of Canada over the past three quarters.

Bank of Montreal (TSX: BMO)

Bank of Montreal is a financial-services provider in four segments: Wealth management, personal and commercial banking, Capital markets, and U.S. P&C banking.

With an EPS of 16.79, the Bank of Montreal has a total market capitalization of C$ 84.086 billion. The price per share for Bank of Montreal has seen a decline of 1.25 per cent within 12 months.

For the third quarter of 2022, the Bank of Montreal posted a net income of C$ 1,365 million. The company's reported EPS was C$ 1.95.

As of September 21, 2022, the Bank of Montreal group announced to increase in its US$ prime lending rate from 5.50 per cent to 6.25 per cent, effective September 22, 2022.

As per Refinitiv data, BMO stock had a Relative Strength Index (RSI) of 44.37 as of September 22, 2022. It indicates that the stock may have a volatile market condition.

Canadian Imperial Bank of Commerce (TSX: CM)

Canadian Imperial Bank of Commerce operates in three business segments: capital markets, retail and business banking and wealth management.

The bank lost around 13.16 per cent in its closing price compared to last year. Currently, the bank holds a market capitalization of C$ 56.4 billion. Reportedly, the quarterly dividend announced by the company was C$ 0.83, with three-year dividend growth of 2.72 per cent.

For Q3 2022, the reported net income for Canadian Imperial Bank of Commerce is US$ 1,666 million, with a quarter-on-quarter (QoQ) increase of 9 per cent.

The CM stock fell over 15.37 per cent YTD, while it saw an increase of 0.45 over the past month.

Toronto-Dominion Bank (TSX: TD)

Toronto-Dominion Bank (The) operates in three business segments: Wholesale banking and Canadian and U.S. retail banking.

Toronto-Dominion Bank has a total market capitalization of C$ 155.8 billion. Toronto-Dominion Bank announced a dividend of C$ 0.89. With a five-year dividend growth of 7.47 per cent, the dividend yield to shareholders is 4.13 per cent.

The TD stock saw a rise of 4.91 per cent on a YoY basis. It increased 2.16 per cent QTD.

Bottom Line

Bank stocks have a relevant share in the market and operate with long-term investing opportunities. As an investor, watch out for the fundamentals very closely to mitigate risks by analyzing the daily movement.

Irrespective of your investing experience, make sure to select your stocks carefully. The stock market varies daily, and you can keep track to prepare your long-term strategy.  


 


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