RY, TD & CM stocks fly after Q2 results: Which TSX bank stock to buy?

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RY, TD & CM stocks fly after Q2 results: Which TSX bank stock to buy?

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RY, TD & CM stocks fly after Q2 results: Which TSX bank stock to buy?
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Highlights

  • Royal Bank of Canada (TSX: RY), Toronto-Dominion Bank (TSX: TD) and Canadian Imperial Bank of Commerce (TSX: CM) have released their Q2 2022 results.
  • Royal Bank of Canada said that its net earnings jumped six per cent in Q2 FY2022 compared to Q2 FY2021
  • Toronto-Dominion Bank reported a net profit of C$ 3.81 billion in Q2 2022.

Royal Bank of Canada (TSX: RY), Toronto-Dominion Bank (TSX: TD) and Canadian Imperial Bank of Commerce (TSX: CM) have released their financial results for the second quarter of fiscal 2022 on Thursday morning, May 26. These three TSX bank stocks can be reliable investment options that Canadian investors can explore if looking to derive long-term value.

As these financial companies have large market capitalization, they are likely to weather the economic storms. Plus, their dividend payments can be an added bonus.

Let us look at the financial results of these three TSX bank stocks and their stock performance.

Royal Bank of Canada (TSX: RY)

Royal Bank of Canada said that its net earnings jumped six per cent to C$ 4.3 billion in Q2 FY2022 compared to Q2 FY2021. The C$ 182-billion market cap lender reported a seven per cent increase in its diluted earnings per share (EPS) to C$ 2.96 in the latest quarter against Q2 2021.

The bank said that the latest quarter results included funds of C$ 504 million released from the provision on performing loans, more than C$ 260 million released a year earlier.

Royal Bank added that it saw 'strong' earnings growth in its Personal & Commercial Banking (up 17 per cent), Wealth Management (up 10 per cent) and Insurance division (up 10 per cent) in Q2 2022 compared to Q2 2021.

Its Investor & Treasury Services segment posted relatively unchanged results, while the Capital Markets segment reported a year-over-year (YoY) decline of 26 per cent in net profit in the latest quarter.

Canada's largest lender (based on market capitalization) raised its quarterly dividend to 1.28 apiece, to be paid on or after August 24.

RY stock was trading at C$ 128.55 per share at 9:11 AM EST on Thursday, May 26 and registered a one-year gain of over four per cent.

Also read: MVY, PRSN, DAC: 3 Canadian social media stocks to buy instead of Snap?

Toronto-Dominion Bank (TSX: TD)

Toronto-Dominion Bank reported a net profit of C$ 3.81 billion in Q2 2022, higher than C$ 3.69 billion earned in the same quarter of 2021. The C$ 170-billion market cap financial service company recorded an increased diluted EPS of C$ 2.07 in the latest quarter against C$ 1.99 posted in the second quarter a year ago.

TD's Canadian retail division saw a marginal increase of two per cent in net profit in the latest quarter compared to Q2 2021. Its US Retail Bank segment also recorded a net income growth of four per cent in Q2 2022 compared to the previous year's quarter. However, its Wholesale Banking saw its net profit plummet by six per cent YoY in Q2 2022.

The large-cap company also announced a quarterly dividend of C$ 0.89 per share, payable on or after July 31.

TD scrip was trading at C$ 93.76 apiece at 9:11 AM EST on May 26 and swelled by over nine per cent in the last nine months.

RY, TD and CM: Should you buy these 3 TSX bank stocks? 

Canadian Imperial Bank of Commerce (TSX: CM)

Canadian Imperial Bank of Commerce reported a net profit of C$ 1.52 billion in Q2 2022, lower than C$ 1.65 billion in Q2 2021. As a result, its diluted EPS also plunged to C$ 1.62 in the latest quarter, down from C$ 1.78 in Q2 2021.

Despite declining profit, Canadian Imperial increased its quarterly dividend to C$ 0.83 apiece, scheduled for July 28.

CM stock was trading at C$ 70.1 apiece at the time of writing on May 26 and zoomed by over three per cent in the past 52 weeks.

Also read: RCK, SVA, AFE, AMC & OYL: 5 TSXV smallcap stocks to watch in Q3 2022

Bottomline

Investors looking to park their money for the long term can consider these TSX bank stocks. However, increasing interest rates can impact the financials of these TSX bank stocks. One should also note that TSX financial index has fallen by nearly seven per cent in 2022.

Please note, the above content constitutes a very preliminary observation based on the industry, 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. 

Royal Bank of Canada (TSX: RY), Toronto-Dominion Bank (TSX: TD) and Canadian Imperial Bank of Commerce (TSX: CM) have released their financial results for the second quarter of fiscal 2022 on Thursday morning, May 26. These three TSX bank stocks can be reliable investment options that Canadian investors can explore if looking to derive long-term value.

As these financial companies have large market capitalization, they are likely to weather the economic storms. Plus, their dividend payments can be an added bonus.

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