Having posted healthy earnings in the second fiscal quarter of 2021, top Canadian lenders such as Bank of Nova Scotia (TSX:BNS) and Toronto-Dominion Bank (TSX:TD) have been on investors’ radar for a while now. The S&P/TSX Financial Index has soared as much as 14.43 per cent year-to-date (YTD), propelled by the performance of the banking industry.
Let’s look at the recent stock performances of these two blue-chip financial stocks.
Bank of Nova Scotia (TSX:BNS)
Bank of Nova Scotia, aka Scotiabank, announced on April 12, that it has become the first major bank to collaborate with Canada Mortgage and Housing Corporation (CMHC) to support housing affordability across all provinces. It expects to infuse nearly C$ 10 billion over the current decade and align with CMHC's aspiration to offer everyone an affordable home by 2030 across Canada.
The top lender’s stock has returned 12.16 per cent this year, while the S&P/TSX Diversified Banks Index dwindled by almost two per cent in the same period.
Scotiabank’s share price swelled by nearly 42 per cent in the past one year. It currently posts a 52-week high of C$ 80.16 apiece.
©Kalkine Group 2021
The C$ 93.58-billion market cap stock offers a return on equity of 10.1 per cent and holds a dividend yield of 4.66 per cent, as per TMX. The bank also distributes a dividend of C$ 0.90 apiece.
In the first fiscal quarter of 2021, Bank of Nova Scotia recorded a profit of C$ 2,398 million, as against C$ 2,326 million in Q1 FY20. This surge came on the back of lower provisions set aside for bed assets.
Toronto-Dominion Bank (TSX:TD)
Toronto-Dominion Bank disclosed on Tuesday, April 20, that its digital customer base hit the 100 million-mark across its mobile app platforms due to the pandemic-led preference shift to digital banking. The bank had witnessed a double-digit surge in its active mobile users across North America in the fiscal year of 2020.
©Kalkine Group 2021
TD Bank’s stock price gained 14.44 per cent this year and surged by 44.61 per cent in the past one year, outperforming the S&P/TSX Diversified Banks Index.
The financial stock posted a fresh 52-week high of C$ 83.82 on April 6.
One of the largest Canadian banks, TD also provides a quarterly dividend of C$ 0.79 apiece and holds a current dividend yield of 3.84 per cent.
In the first fiscal quarter of FY21, TD bank registered an adjusted net income of C$ 3.4 billion, up from that of C$ 3.1 billion in the same period of FY20. This rise came as its provision for credit loss dropped by C$ 249 million year-over-year.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.