AUS
NZ
UK
CA
USA
IND
Highlights
- In Q3 2022, Bank of Nova Scotia’s net income was C$ 2.5 billion.
- Sun Life has announced acquisition intention of a majority stake in Advisors Asset Management.
- Intact Financial recently completed its acquisition of Highland Insurance Solutions.
The market witnessed ups and downs in the recent past. There has been consistent economic pressure causing market volatility and downturn. Amid this, different sectors are showing different movements.
Presently, the financial sector accounts for 30.85 per cent of the total composite index. The financial sector companies are also going through a lot of fluctuations.
The S&P/TSX Capped Financial Index dropped by 11.3 per cent YTD (year-to-date). However, the sector witnessed a QTD (quarter-to-date) increase of 3.92 per cent at the time of writing.
Most investors can overcome the fluctuating effect of stocks on their portfolios, ensuring healthy investment choices that lead to minimal risk and growth potential.
Here are five financial stocks mentioned along with their recent performances:
-
Bank of Nova Scotia (The) (TSX:BNS)
Bank of Nova Scotia is a financial service provider operating globally. The bank operates with five business segments- global banking, global wealth management, Canadian banking, international banking, and others. The product range of the bank includes- private and personal banking, commercial banking, investment banking, wealth management, corporate banking, and capital markets.
In Q3 2022, the net income remained unchanged for Bank of Nova Scotia at C$ 2.5 billion compared to Q3 2021. The total revenue rose to C$ 7.799 billion from C$ 7.757 billion for the same period. The dividend paid by the bank stood at C$ 1.03 per share on a quarterly basis. With a dividend yield of 6.257 per cent, the company reported a five-year dividend growth of 4.3 per cent. The earnings per share (EPS) is at C$ 8.4.
-
Sun Life Financial Inc. (TSX:SLF)
Sun Life Financial Inc. is a life insurance company in Canada. It caters to customers from the segment pertaining to retirement, wealth management, insurance services to individuals and corporate customers in the US, Canada, and Asia. The company also owns an asset management firm in Boston and an MFS Investment Management firm.
In Q3 2022, the reported net income of Sun Life Financial Inc fell to C$ 466 million and witnessed a decrease of 54 per cent compared to Q3 2021. The reported EPS also decreased to C$ 0.8 versus C$ 1.74 for the same period.
The insurance sales of the company rose to C$ 943 million compared to C$ 628 million. The quarterly dividend for Sun Life was noted at C$ 0.72 per share with a dividend yield of 4.804 per cent. The five-year dividend growth was noted at 7.13 per cent. The price to earnings (P/E) ratio was 9.4.
On September 1, 2022, the company announced its intent to acquire a majority stake in Advisors Asset Management, Inc.
-
Toronto-Dominion Bank (The) (TSX:TD)
Toronto-Dominion Bank is based in Canada and operates with business segments that include Canadian retail, Wholesale and US retail banking. The bank is the 13 per cent owner in Charles Schwab.
In Q3 2022, Toronto-Dominion Bank's reported revenue grew to C$ 10,925 million from C$ 10,712 million in Q3 2021. The reported net income went down to C$ 3,214 million from C$ 3,545 million. The total assets of the bank witnessed an increase and were posted at C$ 1,840.8 million. The company pays dividend of C$ 0.89 per share on a quarterly basis. The P/E ratio of the bank is at 11.1 with an EPS of C$ 7.91.
On August 2, 2022, the TD Bank Group announced the definitive agreement for the bank to acquire Cowen Inc.
-
Intact Financial Corporation (TSX:IFC)
Intact Financial Corporation is engaged in providing written premiums in the segment of property and casualty insurance. The company is based in Canada and provides insurance under the Intact Insurance brand. These operations are carried through BrokerLink, a wholly owned subsidiary along with the brokers’ network. Further, it offers insurance to its customers directly through Belairdirect.
In Q2 2022, the net income of Intact Financial rose to C$ 1,184 million from C$ 573 million in Q2 2021. The EPS of the company also grew to C$ 6.64 from C$ 3.59 for the same period. The revenue soared up to C$ 5,340 million from C$ 3,819 million. The cash and cash equivalents fell to C$ 1,223 million from C$ 3,382 million.
On August 1, 2022, the company completed its acquisition of Highland Insurance Solutions.
The picture below depicts the total market capitalization of BNS, SLF, TD, IFC, and BMO.
-
Bank of Montreal (TSX:BMO)
Bank of Montreal is engaged in providing diversified financial-services and is based in North America. The bank operates through four business segments- U.S. P&C banking, Canadian personal and commercial banking, wealth management, and capital markets. Majorly, the bank operates in Canada long with the material portions in the US.
In Q3 2022, the Bank of Montreal's net income was reported at C$ 1.3 billion versus C$ 2.2 billion in Q3 2021. The reported revenue also decreased to C$ 6,099 million from C$ 7,562 million. With a dividend yield of 4.382 per cent, the bank announced dividend of C$ 1.39 per share to the shareholders. The EPS of the bank is at C$ 16.79.
Bottom Line
As an investor, operate in the market with a long-term approach and portfolio diversification. These two aspects may facilitate you to align your stock selection with your wealth goals.
Selecting stocks based on their present performance may be a criterion for many investors. But to make your portfolio risk proof, it is crucial to check with company valuations and past performances as well. This will make you stay relevant and will give you an overall insight of the market.
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.
