# The Big Bank Profit Parade Thread



## CanadianCapitalist (Mar 31, 2009)

> TORONTO, Aug. 27, 2013 /CNW/ - Scotiabank reported third quarter net income of $1,768 million compared with net income of $2,051 million in the same period last year or $1,437 million excluding the gain of $614 million from the sale of the Scotia Plaza property in Toronto last year.
> 
> 
> Diluted earnings per share were $1.37, compared to $1.69 in the same period a year ago. This quarter had a net benefit of 7 cents per share related to non-recurring items in International Banking, including a gain on the sale of a subsidiary by an associated corporation. Last year's results benefited from an after-tax gain on the sale of Scotia Plaza in Toronto, Canada of $614 million or 53 cents per share. Adjusting for both these items, diluted earnings per share grew 12%. Return on equity was strong at 17.0%. A dividend of 62 cents per common share was announced, an increase of 2 cents per share.


Scotiabank reports third quarter net income of $1.8 billion and an increase of its quarterly dividend


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## CanadianCapitalist (Mar 31, 2009)

*BMO Q3-2013 Earnings*



> For the third quarter ended July 31, 2013, BMO Financial Group reported net income of $1,137 million or $1.68 per share on a reported basis and net income of $1,136 million or $1.68 per share on an adjusted basis.
> 
> 
> Concurrent with the release of results, BMO announced a fourth quarter 2013 dividend of $0.74 per common share, unchanged from the preceding quarter and up $0.02 per share from a year ago, equivalent to an annual dividend of $2.96 per common share.


BMO Financial Group Reports Good Results for the Third Quarter of 2013


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## Eder (Feb 16, 2011)

Glad to see my banks are doing their job...I am disappointed that BMO did not give me a 3% raise though.


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## PatInTheHat (May 7, 2012)

Confused on BNS. I figured they would miss and even with a beat they drop 2%? Baffling.


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## My Own Advisor (Sep 24, 2012)

Annoying BMO didn't hike the dividend this fall. I can always hope for spring 2014.

I'll stay hopeful for CM, TD, RY and NA.


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## doctrine (Sep 30, 2011)

BNS did quite well; a little surprised BMO didn't raise their dividend, but I think a lot of the earnings growth came from lower loan losses, not higher margins, so they're taking it easy. Still, has a 4.5% yield with only a 44% payout and a P/E that is trending to 10 even with a +17% share price over the last year.


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## My Own Advisor (Sep 24, 2012)

I was wrong about BMO doctrine, re: my comment on your site. Oh well. Let's see how the others do.


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## Jungle (Feb 17, 2010)

BNS dropped because their international portion apparently did not satisfy the market. Plus there are reports of shorters pulling the stock prices down. Still profit is up 17% (adjusted) taking out sale of scotia plaza.


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## doctrine (Sep 30, 2011)

http://www.nbc.ca/bnc/files/bnc10148/en/2/e_ri_comm_ven2014.pdf

National Bank net profits up 11% to $2.38, adjusted profits up 12% to $2.22. That puts their 4.35% yield at a mere 39% of adjusted (36% of net) earnings in the last quarter. Their Basel III capital is up from 8% to 8.6% in just one quarter. Very good results from the 6th largest bank.


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## HaroldCrump (Jun 10, 2009)

My Own Advisor said:


> Annoying BMO didn't hike the dividend this fall. I can always hope for spring 2014.


BMO raised its dividend in May of this year by about 2.8%.
I am not surprised they didn't raise it this time.
BMO is slower than BNS and TD when it comes to raising dividend.
Also, they have a higher yield than BNS and TD anyway.


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## Synergy (Mar 18, 2013)

doctrine said:


> http://www.nbc.ca/bnc/files/bnc10148/en/2/e_ri_comm_ven2014.pdf
> 
> National Bank net profits up 11% to $2.38, adjusted profits up 12% to $2.22. That puts their 4.35% yield at a mere 39% of adjusted (36% of net) earnings in the last quarter. Their Basel III capital is up from 8% to 8.6% in just one quarter. Very good results from the 6th largest bank.


If you look at the 5 & 10yr charts, NA & TD have served their long term shareholders well over the yrs. Nice to see NA continuing to do well...


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## doctrine (Sep 30, 2011)

NA has reacted the most so far, up $1.80 right now or 2.2%. They have hit a 52 week high and are actually only about $0.50 away from the all time high reached last year.


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## CanadianCapitalist (Mar 31, 2009)

*Royal Bank Q3-2013 Earnings*



> TORONTO, August 29, 2013 - Royal Bank of Canada (RY on TSX and NYSE) today reported record net income of $2,304 million for the quarter ended July 31, 2013, up $64 million or 3% from the prior year and up $368 million or 19% from last quarter. We also announced an increase to our quarterly dividend of $0.04 or 6%, to $0.67 per share.
> 
> Excluding specified items as discussed on page 3 of this Earnings Release, net income was $2,214 million, up $236 million or 12%(1) from last year and up $247 million or 13%(1) from last quarter. Our solid results were driven by continued strength across most of our businesses, including record earnings in Personal & Commercial Banking and Wealth Management.


ROYAL BANK OF CANADA REPORTS RECORD THIRD QUARTER 2013 RESULTS


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## CanadianCapitalist (Mar 31, 2009)

*TD Bank 3Q-2013 Results*



> THIRD QUARTER FINANCIAL HIGHLIGHTS, compared with the third quarter a year ago:
> 
> 
> Reported diluted earnings per share were $1.58, compared with $1.78.
> ...


TD Bank Group Reports Third Quarter 2013 Results

Also, TD Bank announced a dividend increase:



> TORONTO, Aug. 29, 2013 /CNW/ - The Toronto-Dominion Bank (the Bank) today announced that a dividend in an amount of eighty-five cents (85 cents) per fully paid common share in the capital stock of the Bank has been declared for the quarter ending October 31, 2013, payable on and after October 31, 2013, to shareholders of record at the close of business on October 3, 2013. This represents an increase in the quarterly dividend of four cents or 5% compared with last quarter.


http://td.mediaroom.com/2013-08-29-TD-Bank-Group-declares-dividends


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## Jungle (Feb 17, 2010)

I was expecting 0.02 raise from royal not 0.04..... thats 11.5% this year, not including drips.


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## CanadianCapitalist (Mar 31, 2009)

*CIBC Q3-2013 Results*



> Third quarter highlights
> 
> 
> 
> ...


https://www.cibc.com/ca/pdf/investor/q313newsrelease.pdf

Dividend stays at 96 cents per share.


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## PatInTheHat (May 7, 2012)

Got into TD yesterday @ 87.6. Not a bad start


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## doctrine (Sep 30, 2011)

While TD reported adjusted earnings of $1.65 a share, they did not account for the insurance losses. If the insurance division made as much money as last year, their net income would have been $2.02 a share. Not bad, and up 5.7% over a year ago (on 1.7% higher revenue), although I would argue not necessarily justifying a premium over the other Canadian banks (now a P/E of 13 - still good though in absolute terms).


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## james4beach (Nov 15, 2012)

The media doesn't say much about leverage ... just the classic old multiplier of bank gains (or losses)

You can see leverage stats here

TD has the highest leverage at 33.5x (that is, the lowest capitalization) based on this measure and I think this ties into why TD is so popular among the analysts. High leverage -> boost to gains/losses -> looks awesome in good times


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## My Own Advisor (Sep 24, 2012)

So a few dividend hikes...RY, BNS and TD this week. CM an NA announced hikes back in May 2013. BMO was in Feb? Pretty good, thanks banks.


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## Cal (Jun 17, 2009)

They always seem to find a way to make $ don't they....


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## james4beach (Nov 15, 2012)

Cal said:


> They always seem to find a way to make $ don't they....


I would have to beat those executives senseless if they couldn't make money. They would have to literally be braindead. Imagine this was your business situation:

1) The central banks basically print free money, and you're directly located in the spray direction of that free money hose (ZIRP and QE)

2) You can be as reckless as you want, because the government and taxpayers cover your losses and prevent your business from failing in the worst case situation. The nation will event print money and devalue its currency, to save your butt

3) Because of government guarantees (too big to fail and CDIC insurance) you naturally attract all the business away from smaller competitors such as credit unions who can't offer those kinds of guarantees

Meanwhile over here in the real world, for real businesses, you have to seek your own financing, you have to take the RISK of failing and being ruined, and you have to worry about competition. You also don't get free money raining down from the heavens. You don't have the benefit of secret central bank programs that provide you virtually unlimited free loans in times of distress (loans they don't even have to disclose to the country or to shareholders) such as with Federal Reserve's TAF program lending canadian banks over $100 billion, totally secretly!

Could you imagine, just for a second, what you would do if YOU as a business owner had those benefits?


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## Eclectic12 (Oct 20, 2010)

james4beach said:


> 2) You can be as reckless as you want, because the government and taxpayers cover your losses and prevent your business from failing in the worst case situation.


I understand the general point but am not convinced it's the carte blanche you think it is.  

If it were, how come the gov't turned the banks down on their proposed mergers that the bank CEOs were painting as a critical to getting enough mass to compete with the US banks?




james4beach said:


> 3) Because of government guarantees (too big to fail and CDIC insurance) you naturally attract all the business away from smaller competitors such as credit unions who can't offer those kinds of guarantees.


Not sure if there is true for many ... CMF is the main place so far I've seen make this sort of comment and even here, posters have said they'll take the higher rate.


Cheers


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## CanadianCapitalist (Mar 31, 2009)

*BMO Q4-2013 Results*

Dividend up 2 cents per share to 76 cents. Stock dropped 4.5 percent after earnings release.



> *Fourth Quarter 2013 Compared with Fourth Quarter 2012:*
> 
> 
> *Net income of $1,088 million, up 1%; adjusted net income**[SUP]1[/SUP]* *of $1,102 million, down 2%*
> ...


http://newsroom.bmo.com/press-relea...ord-net-income-of--tsx-bmo-201312030914924005


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## CanadianCapitalist (Mar 31, 2009)

*Bmo q1 2014*

Financial Results Highlights:


First Quarter 2014 Compared with First Quarter 2013:


- Net income of $1,061 million, up 2%; adjusted net income(1) of $1,083 million, up 5%


- EPS(2) of $1.58, up 5%; adjusted EPS(1,2) of $1.61, up 7%


- ROE of 14.2%, compared with 14.9%; adjusted ROE(1) of 14.5%, compared with 14.8%


- Provisions for credit losses of $99 million, compared with $178 million; adjusted provisions for credit losses(1) of $99 million, compared with $96 million


- Basel III Common Equity Ratio is 9.3%

BMO Financial Group Reports Net Income of $1.1 Billion for the First Quarter of 2014


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