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EQB & X: How have these banking stocks fared?

Published 2023-06-30, 05:39 a/m
Updated 2023-06-30, 09:45 a/m
© Reuters. EQB & X: How have these banking stocks fared?

Kalkine Media - Summary

  • The Canadian central bank is expected to increase its trendsetting rate is which could potentially benefit the banking sector.
  • EQB Inc (TSX:EQB) provides residential and commercial real estate lending services and has a P/E ratio of 12.50x based on Thursday’s closing price of CA$ 69.38.
  • TMX Group (TSX:X) Ltd. operates global exchange markets and clearing corporations and has a P/E ratio of 4.40x based on Thursday’s closing price of CA$ 29.31.

During early 2023, when recessionary fears took over the market, some of largest global banks collapsed. However, rising interest rates have brought forth the possibility of a revival in the banking sector. Apart from these factors, banking stocks also offer dividends.

ALSO READ: The Age of Connectivity: Investing in TSX Communication Stocks: Thriving in the Digital Era

On that note, here are two TSX-listed banking sector stocks that investors can watch out:

EQB Inc. (TSX: EQB)

EQB reported a revenue of CA$ 264.6 million on lending growth for Q1 2023. The ROE for the quarter was 16.9%, which exceeded the guidance of over 15%. Meanwhile the net income was CA$ 101.7 million in Q1 2023, a y-o-y growth of 10%.

During the announcement, EQB also announced an increase of 6% in its common dividend for Q2 2023 to CA$ 0.37 per common share.

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EQB has a market capitalization of CA$ 2.614 billion and a P/E ratio of 12.50x based on Thursday’s closing price of CA$ 69.38.

ALSO READ: Can these TSXV-listed biotech stocks potentially shoot up?

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TMX Group Ltd. (TSX: X)

TSXV

For Q1 2023, TMX Group reported record revenue of CA$ 299.1 million which was 4% higher than that in Q1 2022. The net income to common stockholders of TMX Group was CA$ 89 million for the quarter. Meanwhile the cash from operating activities was CA$ 96.6 million in Q1 2023, as against CA$78.7 million in Q1 2022.

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The group declared a dividend of CA$ 0.87 for the quarter.

TMX closed at CA$ 29.31 on Thursday June 29, 2023. The P/E ratio for X based on Thursday’s closing price is 4.40x.

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