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Canada’s Big 6 banks are off to a strong start to 2022. Indeed, the Canadian bank cleared his COVID-19 pandemic hurdle with impressive results given the challenges of the previous year. But in 2022, it will take its toll on consumers, who are under pressure from rising interest rates and rapid inflation.
Today I want to take a look at three of my favorite bank stocks after the final bank results are out in late November/early December. Let’s dive in.
This bank stock offers big discounts ahead of the new year
Bank of Montreal (TSX:BMO) is the third largest Canadian Big 6 bank stock by market capitalization. This Toronto-based bank offers excellent exposure to the US market. On the other hand, it maintains its position as a strong domestic bank.
The price of this premier bank stock is up 13% at its close on December 23, 2022. The stock has fallen 5.6% in the last month. If you want a more detailed picture of recent performance, you can play with the interactive chart below.
The bank announced its fourth quarter (Q4) and full year 2022 earnings on December 1. In the fourth quarter of 2022, BMO posted an adjusted net income of $2.13 billion, compared with $2.22 billion a year earlier. Meanwhile, adjusted net income for the full year increased to $9.03 billion, up from $8.65 billion for the full year 2021.
This bank stock has a very favorable price/earnings ratio (P/E) of 6.1. Even better, it offers a quarterly dividend of $1.43 per share. This represents a solid 4.6% yield.
International Banks of Canada Should Be on Your Radar Now
scotiabank (TSX:BNS) is sometimes referred to in Canada as an “international bank” because it offers significant exposure to global markets. It has a very strong presence in Latin America, an economic space that has experienced strong growth over the past decade. This makes him the fourth largest bank among Canada’s Big 6 banks by market capitalization.
The bank’s share price is down 26% in 2022. Shares were down 7.1% month-on-month at the close of trading on December 23. Scotiabank announced the final batch of his 2022 financial results on November 29th. Adjusted net income was reported at $10.7 billion, or $8.50. Full year 2022 per diluted share, up from $10.1 billion in the prior year or $7.87 per diluted share.
Scotiabank’s stock last posted an attractive P/E of 8.2. Additionally, the bank stock pays a quarterly dividend of $1.03 per share and yields 6.2%.
Another cheap bank stock to grab today
Canadian Imperial Bank of Commerce (TSX:CM) is the third bank stock we hope to acquire after the end of December earnings. This makes him the fifth largest among the Big 6 bank stocks. However, investors should not let size determine whether a company is worth buying compared to its larger peers. CIBC shares are down 26% year-to-date.
In Q4 2022, CIBC revenue increased 6% to $5.38 billion. Meanwhile, adjusted net income plunged 17% to $2.07 billion, or $1.39 per diluted share. The stock of this bank stock has a very favorable P/E ratio of 8.1. With a quarterly dividend of $0.85 per share, the yield is a whopping 6.2%.
