Fortunately, wrote the DBRS Morningstar analysts, the big Canadian banks “are entering 2023 from a position of strength with strong asset quality, ample liquidity buffers, and sound capital levels.” Royal Bank of Canada Bank of Nova Scotia is the third-largest Canadian-based bank by assets and one of six Canadian banks that collectively hold almost 90 of the nations banking deposits. The report went on to say that due to a shifting risk environment, Canadian regulators are requiring banks to set aside more capital as a buffer against economic risks of rising rates.

The Royal Bank of Canada, Bank of Montreal, and the Bank of Novia Scotia are all expected to post earnings declines this year, even as they all increase their shareholder payouts.Īccording to a January report from DBRS Morningstar, “The Canadian banking outlook for 2023 is affected by a challenging operating environment featuring muted economic growth and the increasing likelihood of a recession.” Right now - after raising the dividend about 3 the last time - the bank is paying a quarterly dividend of 1.06 resulting in an annual dividend of 4.24 and a dividend yield of 7.1. Investors who buy BNS stock at the current price can get a 7.2 dividend yield. financials when it comes to increased revenue growth in recent quarters, but earnings growth has been choppy. The stock trades for close to 59 at the time of writing compared to 93 at the peak in 2022. Canadian bank stocks have been following roughly the same trajectory as U.S.

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