Should you watch these TSX banking stocks in the second quarter?

March 21, 2023 03:58 AM EDT | By Raza Naqvi
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  • On March 1, TD announced that it has completed the acquisition of Cowen.
  • TD announced a quarterly dividend of C$ 0.96 per share and its dividend yield was 4.9 per cent.
  • On Friday, March 17, the BNS stock was up 0.13 per cent and closed at C$ 65.81 apiece.

Investing in Canada's major banks is often an option for long-term investors. In summary, banks provide a proven business model, a sizable dividend, and some defensive appeal. Nonetheless, some investors might be unsure if some TSX bank stocks should currently be included in a portfolio.

Let's find out if you should explore some banking stocks trading in Canada.

Toronto-Dominion Bank (TSX: TD)

It is one of the largest stocks in the country. Toronto-Dominion Bank (TSX:TD) had a market cap of C$ 142.55 billion as of writing.

The second-largest lender in Canada, TD, is expanding its footprint in the American market. Now, the US branch network includes more than 1,100 branches and runs from Maine to Florida.

On March 1, TD announced that it had completed the acquisition of Cowen, a provider of investment banking services.

In Q1 2023, the adjusted earnings of Toronto-Dominion were up eight per cent year-over-year (YoY) to C$ 4.2 billion. The US Retail Bank reported a record net income of C$ 1,589 million, up 25 per cent YoY.

The bank's total revenue amounted to C$ 12.22 billion in Q1 2023 compared to C$ 11.28 billion in Q1 2022. Also, the bank's total assets increased significantly to C$ 1,928.3 billion from C$ 1,778.6 billion in the same comparable period.

TD announced a quarterly dividend of C$ 0.96 per share, and its dividend yield was 4.9 per cent at the time of writing. The bank's dividend grew by 5.8 per cent in the last three years.

Bank of Nova Scotia (TSX: BNS)

One international provider of financial services is the Bank of Nova Scotia. It provides a variety of recommendations, goods, and services, including private and corporate banking, wealth management, capital markets, corporate and investment banking, and personal and commercial banking.

The bank's overseas operations occur in many nations but mostly focus on Central and South America.

In Q1 2023, BNS' net interest income was C$ 4,569 million compared to C$ 4,344 million in Q1 2022. Meanwhile, the total revenue was C$ 7,980 million, down from C$ 8,049 million.

The bank announced a quarterly dividend of C$ 1.03 per unit, and as of writing, its dividend yield was 6.26 per cent.

On Friday, March 17, the BNS stock was up 0.13 per cent and closed at C$ 65.81 apiece.

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.


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