During the first quarter of 2009, the shares of the Canadian banks have lost a considerable portion of their value due to higher retail loan loss, slower loan growth and progressively deteriorating credit ratio, with all factors set against the background of weakening equity markets and falling consumer loans rate.
The Royal Bank of Canada (RBC), traded on the New York Stock Exchange as RY, is the country's largest bank in terms of total assets. The leading position of the bank at the home market is underpinned by an extensive branch network and a deeply-rooted corporate relationships. The bank's borrowings from U.S. banks amount to less than fifteen percent of RBC's total loan portfolio. Its Canadian business accounts for over fifty percent of the group's profits. The bank's strong focus on retail banking guarantees its stable earnings and acts as a buffer against charges and loan losses under the conditions of continuing global stagnation. The stable quote of the bank's share should allow the RBC to gain a strong capital position and accelerate growth by pursuing acquisition opportunities through its international subsidiaries. Latest RBC NYSE quote is 49 US dollars per share, reporting devaluation by 2.35 percentage points.
The shares of Toronto-Dominion Bank (TD) are traded at the stock exchanges in Toronto, Tokyo, and New York. TD Bank Financial Group is the second largest bank in Canada in terms of deposits and market capitalization. The group's strong presence at the banking markets is based on a team of more than 70,000 employees working in a network of over 1,000 offices in Canada and globally. The bank has the authority to issue an unlimited number of common shares without par value. TD shareholders receive dividends and can vote at the meetings of shareholders. In case of liquidation, the holders of common shares are entitled to a proportional distribution of the remaining assets. At the end of the third quarter of 2009, the bank's shareholders will be entitled to receive dividends of $0.61 per common share.
The Bank of Montreal, traded on the stock exchanges in New York and Toronto under the symbol BMO. This body is the fourth largest bank in Canada in terms of deposits. Over time, BMO Financial Group plans to pay out between 44 and 55 percent of its earnings in dividends. At the end of August 2009, BMO shareholders were entitled to dividends at $0.70 per common share.
The Canadian Imperial Bank of Commerce is the fifth largest bank in the country in terms of deposits. Its shares are traded on the stock exchanges in Toronto and New York under the symbol CM. At the end of the third quarter of 2009, CIBC announced a net income of $434 million and cash diluted earnings of $1.041 per share.
'You are richer than you think', the slogan of Canada's Scotiabank, is especially appealing to all customers in the conditions of a continuing global recession. The bank has established as the practice to directly relate dividends to trade earnings; yet, depositors' protection has always been among the top priorities of the Scotiabank's team. In its Q3 2009 report, Scotiabank reports diluted earnings per common share at $0.87, down by $0.20 from last year, and 18 percent return in equity, compared to 21 percent in the third quarter of 2008.
In 2009, the National Bank of Canada marked its 150th anniversary. The Bank's shares are traded on the Toronto Stock Exchange (TSX) as NA. At the end of Q3 2009, the bank's shares of series 24-26 (ticker symbol NA.PR.O, NA.PR.P) have brought the highest dividends to their holders at $0.41 per share.
Pacific & Western Bank of Canada (PWBank) is a fully-owned subsidiary of Pacific & Western Credit Corp. (TSX:PWC). On 3 September, 2009, the corporation announced a plan to pay quarterly dividends to its shareholders, amounting to $ 0.29 per class-B preferred share.
The latest trade report from the Toronto Stock Exchange demonstrates that the Canadian Western Bank quotes a trade value of CAD 21.44 (devaluation of 0.20 percentage points from previous session) and dividend yield of slightly over two percent (0.44 per common share).