What to Expect From the Canadian Banks Next Week

The Canadian banks are set to serve up the grand finale of earnings season.

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Earnings season is winding down, but for many Canadian investors, the best is yet to come.

Starting with TD Bank (TSX:TD) on Thursday, the Canadian banks will report 2nd quarter results over the next two weeks.  Given the attention that this country’s housing market has recently received from hedge fund types south of the border, this quarter may be more heavily scrutinized than most.

Tabled below are the current consensus earnings estimates and release dates for each of the banks that report over the next two weeks.

Company Name

Exp. EPS

vs. Q2’12

Date

TD Bank (TSX:TD)

$1.91

$1.82

23-May

National Bank (TSX:NA)

$1.98

$1.95

24-May

Bank of Nova Scotia (TSX:BNS)

$1.26

$1.15

28-May

Bank of Montreal (TSX:BMO)

$1.50

$1.44

29-May

Royal Bank (TSX:RY)

$1.30

$1.15

30-May

CIBC (TSX:CM)

$2.06

$2.00

30-May

Source:  Capital IQ

Perhaps more important than the past quarter’s earnings will be an indication of what lies ahead.  Every ounce of housing related information that the banks release is sure to be magnified and scrutinized by the masses.

Even if the banks report a solid quarter and indicate that housing market is sound there are two things that they can do to really stick it to their doubters.

Either hike their dividends or start buying back stock.

Actions speak louder than words and if any bank is so bold as to undertake either of these initiatives, they are likely to be declared the winner of this earnings round.

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Fool contributor Iain Butler does not own any of the companies mentioned in this report.  The Motley Fool doesn’t own shares in any of the companies mentioned.   

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

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