BMO, BNS, and CM: 3 TSX banks stocks to tackle market volatility

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BMO, BNS, and CM: 3 TSX banks stocks to tackle market volatility

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Canada bank stocks
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Highlights:
  • In Canada, investors often choose bank stocks as most are blue-chip and could provide little stability during turbulent times.
  • The revenue of BMO Financial Group was C$ 7,723 million in Q1 FY22 compared to C$ 6,975 million in Q1 FY21.
  • CIBC is reportedly the fifth-largest bank in Canada had had business segments like capital markets, wealth management, retail and business banking.

The equities markets are volatile, and investors try to keep a diverse investment portfolio to tackle uncertain times in a market.

Investors often look for dividend-paying stocks to keep a balanced portfolio as they provide a passive income to shareholders irrespective of market conditions.

In Canada, investors often choose bank stocks as most are blue-chip and could provide little stability during turbulent times.

That said, let's take a look at the stocks of three Canadian banks and find out if you should explore them:

Bank of Montreal (TSX:BMO)

It is one of the top banks in Canada and provides diversified financial services to customers in North America. BMO Financial Group declared financial results for the first quarter of 2022 and said its net income was C$ 2,933 million, reflecting an increase of 45 per cent year-over-year (YoY).

Also, the financial services group's reported earnings per share (EPS) of C$ 4.43 in Q1 2022, up 46 per cent YoY. The recovery of the provision for credit losses was C$ 99 million in Q1 2022 compared to C$ 156 million in Q1 2021.   

Notably, the return on equity (ROE) increased from 15.7 per cent in Q1 2021 to 21.4 per cent in the first quarter of this year.

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The revenue of BMO Financial Group was C$ 7,723 million in Q1 FY22 compared to C$ 6,975 million in Q1 FY21. Bank of Montreal announced a quarterly dividend of C$ 1.33 per unit for Q2 2022, and it remained unchanged from the previous year.

At the time of drafting, BMO stock was up 0.09 per cent and trading at C$ 151.42 per share.

Bank of Nova Scotia (TSX:BNS)

It is one of the most actively traded stocks on the Toronto Stock Exchange, and at 10:30 AM EST, around 408,050 BNS shares had exchanged hands-on Canada's primary exchange.

On a reported basis, Bank of Nova Scotia's net income was C$ 2,740 million in the first quarter of fiscal 2022 compared to C$ 2,398 million in Q1 2021.

Meanwhile, the diluted earnings per share increased to C$ 2.14 in Q1 2022 from C$ 1.86 in the first quarter of 2021. On March 1, the Bank of Nova Scotia declared a dividend of C$ 1 per unit for its common shares and C$ 0.303125 apiece for non-cumulative preferred shares.

BNS BMO CM Stock                                                                  ©2022 Kalkine Media® 

Canadian Imperial Bank Of Commerce (TSX:CM)

CIBC is reportedly the fifth-largest bank in Canada had had business segments like capital markets, wealth management, retail and business banking.

The bank serves more than 11 million personal banking and business customers, and the CM stock was priced at C$ 161.86 per share at the time of drafting.

Canadian Imperial Bank of Commerce's reported net income was C$ 1,869 million in Q1 2022, and its reported diluted earnings per share was C$ 4.03.

The adjusted return on equity of CIBC was 17.6 per cent, and common equity tier 1 (CET1) ratio was 12.2 per cent in the first quarter of 2022.

CIBC distributes a dividend of C$ 1.61 per unit to common shareholders, and its dividend yield is 3.99 per cent.

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Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.

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