Canada's Big Six Banks: Earnings Preview; Financial Upside, Dividends Comparison By Investing.com

Canada's Big Six Banks: Earnings Preview; Financial Upside, Dividends Comparison

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By Ketki Saxena

Investing.com - Q2 earnings for all of Canada’s big six banks are expected this week, kicking off with BMO (TSX:BMO) (TSX:BMO) and BNS (TSX:BNS) tomorrow morning before the opening bell. RBC, TD (TSX:TD), and CIBC (TSX:CM) earnings are confirmed for Thursday, and National Bank of Canada (TSX:NA) (TSX:NA) closes out the season on Friday.

Canadian banks are expected to post an average 12% drop in earnings this quarter compared to Q1 2022, despite strong loan growth and considerable margin expansion from rising interest rates. Increased expenses, loan loss-reserves, and lower investment banking revenues, however, are expected to weigh on profits.

Here’s an overview of what to expect at earnings calls this week, and an overview of Canada's big six banks by some of the metrics most important to investors.

BMO

Dividend Yield: 4.06%
Current Price: $133.05
52-week range: $121.76 - 154.47
12 Month Price: target): $150.70
Financial Upside: 13.3%

What to expect at Earnings: EPS $3.22 on Revenue of $6.691 B, compared to EPS $3.89 on revenue of $7.723 B in the previous quarter.

Scotiabank (TSX:BNS)

Dividend Yield: 4.99%
Current Price: $81.37
52-week range: $75.86 - 94.98
12 Month Price Target (NYSE:TGT): $99.11
Financial Upside: 21.8%

What to expect at Earnings: EPS $1.96 on revenue of $7.873 B, compared to EPS $2.15 on revenue of $8.049 B in the previous quarter

Royal Bank of Canada (TSX:RY)

Dividend Yield: 3.73%
Current Price: $128.62
52-week range: $123.39 - 149.60
12 Month Price Target: $144.83
Financial Upside:12.6%

What to expect at Earnings: EPS $2.68 on revenue of $11.933 B, compared to EPS $2.87 on revenue of $13.066 B in the previous quarter.

CIBC

Dividend Yield: 4.62%
Current Price: $69.66
52-week range: $66.05 - 83.75
12 Month Price Target: $82.78
Financial Upside:18.8%

What to expect at Earnings: EPS $1.71 on revenue of $5.319 B, compared to EPS $2.04 on revenue of $5.498 B in the previous quarter

Dividend Yield: 3.85%
Current Price: $92.42
52-week range: $80.69 - 109.07
12 Month Price Target: $99.96
Financial Upside: 8.2%
What to expect at Earnings: EPS $1.93 on revenue of $10.183 B, compared to EPS $2.08 on revenue of $10.563 B in the previous quarter.

National Bank of Canada

Dividend Yield: 3.69%
Current Price: $94.28
52-week range: $87.71 - 106.10
12 Month Price Target: $104.17
Financial Upside:10.5%

What to expect at Earnings: EPS $2.26 on revenue of $2.36 B, compared to EPS $2.65 on revenue of $2.53 B in the previous quarter.

*All currencies CAD
*All prices as of 4 p.m ET, Tuesday May 24

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