Here’s what drives bank performance

The profitability of banks is determined by a variety of factors including their business mix, lending profit-margins, loan and deposit growth, bad debts, and cost management. The top-performing banks consistently find the right balance between these factors, leading to strong results and stock market performance.
Lending… Read More

The outlook for top banks is still strong

Banks and other financial services firms suffered in early 2020 as the pandemic took hold. But most have since bounced back—and many have hit new highs. Meanwhile, once economic activity returns to normal, the best of these should continue to be strong performers. That’s all… Read More

Pass on this ETF

BMO COVERED CALL CANADIAN BANKS ETF $23.26 (Toronto symbol ZWB) holds shares of Canada’s six largest banks (CIBC, TD Bank, Bank of Montreal, Bank of Nova Scotia, Royal Bank and National Bank).
The fund started up in January 2011. Its MER is a relatively high 0.72%.
BMO Canadian High Dividend Covered… Read More

Q: Pat, I recently heard about Hamilton Enhanced Canadian Bank ETF (HCAL-TSX). Do you think this is a good way to invest in all the banks rather than try to find the best one(s) to buy individually?

A: Hamilton Enhanced Canadian Bank ETF, $28.52, symbol HCAL on Toronto, (Units outstanding: 13.5 million; Market cap: $385.0 million; www.hamiltonetfs.com), aims to track the Solactive Canadian Bank Mean Reversion Index.

This index invests in the biggest six Canadian banks—TD, Bank of Montreal, Royal Bank, CIBC, Bank… Read More