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• National Bank of Canada (TSX:NA:CA) declares CAD 0.97/share quarterly dividend, in line with previous.
• Forward yield 2.84%
• Payable May 1; for shareholders of record March 27; ex-div March 24.
• See NA:CA Dividend Scorecard, Yield Chart, & Dividend Growth.

• Now Read: National Bank of Canada Non-GAAP EPS of C$2.56, revenue of C$2.58B

Royal Bank of Canada’s (NYSE:RY) fiscal Q1 earnings beat the average analyst estimate, increasing from the prior and year-ago quarters, driven by strong results in its Personal & Commercial Banking and Wealth Management units and a rebound in Capital Markets. That was partly offset by lower results in its insurance business. In addition, the bank known as RBC (RY) set more reserves aside for potential loan defaults as it took a dimmer view of the macroeconomic outlook and credit quality. Q1 adjusted EPS of C$3.05 (US$2.25), topping the C$2.94 consensus estimate, rose from C$2.78 in the prior quarter and from C$2.87 in the year-ago period. Net interest income for the quarter ended Jan. 31, 2023 slipped to C$6.20B (US$4.57B) from C$6.28B in Q4 2022 and increased from C$5.27B in Q1 2022. Net interest margin of 1.47% narrowed from 1.56% in the prior quarter and widened from 1.39% in the year-ago quarter. RBC (RY) provision for credit losses of C$532M rose from C$381M in Q4 and from C$105M in Q1 2022. Preprovision pretax earnings of C$5.9B increased 12% from the prior quarter and rose 7% from the year-ago period. Personal & Commercial Banking preprovision pretax earnings were C$3.23B, up 4% Q/Q and 18% Y/Y; net income of C$2.06B increased 3% Q/Q and 7% Y/Y. Wealth Management preprovision pretax earnings of C$1.15B increased 1% Q/Q and 7% Y/Y, while net income of C$848M rose 1% Q/Q and 3% Y/Y.  Insurance preprovision pretax earnings of C$190M tumbled 49% Q/Q and 25% Y/Y; net income of C$148M dropped 45% Q/Q and 25% Y/Y. Capital Markets preprovision pretax earnings of C$1.42B surged 76% Q/Q and fell 3% Y/Y; net income of C$1.22B jumped 72% Q/Q and 9% Y/Y. Conference call at 8:00 AM ET. Earlier, Royal Bank of Canada (RY) non-GAAP EPS of C$3.05 beats by C$0.12, revenue of C$15.09B beats by C$1.56B.

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The Toronto-Dominion Bank (NYSE:TD) FQ1 results are expected to benefit from segment earnings, which were strong across most Canadian banks.

TD Bank is scheduled to announce FQ1 earnings results on Thursday, March 2nd, before market open.

The consensus EPS estimate is CAD2.20 and the consensus revenue estimate is CAD11.99B.

Over the last 2 years, TD has beaten EPS estimates 100% of the time and revenue estimates 100% of the time.

Over the last 3 months, EPS estimates have seen 5 upward revisions and 0 downward. Revenue estimates have seen 1 upward revision and 0 downward.

Looking at the peer performance, Canadian banks have seen a solid quarter. Canadian Imperial Bank of Commerce posted a stronger-than-expected FQ1 earnings, helped by higher interest rates and a lower provision for credit losses.

Royal Bank of Canada also beat FQ1 analyst estimates driven by strong results in its Personal & Commercial Banking and Wealth Management units and a rebound in Capital Markets. Bank of Montreal also turned in better-than-expected adjusted EPS for the quarter ended Jan. 31.

Bank of Nova Scotia was an exception as FQ1 earnings missed consensus estimates. Net interest income slipped from the prior quarter while the bank set aside more for potential credit losses.

Here is a look at TD’s segment results last year:

Toronto-Dominion is going into the next earnings cycle with elevated concerns about its rate sensitivity and exposure to credit risk, but underlying earnings power looks stronger than for most peers, according to Seeking Alpha author Stephen Simpson.

Among the major five Canadian banks, Toronto-Dominion Bank could be the best pick right now, SA contributor Daniel Schönberger said.

The bank has closed the acquisition of Cowen (COWN), which will which will advance its long-term growth strategy in the U.S., and expects to close the First Horizon (FHN) acquisition later in 2023.

• Bank of Nova Scotia press release (NYSE:BNS): Q1 Non-GAAP EPS of C$1.85 misses by C$0.17.
• Revenue of C$7.98B (-0.9% Y/Y) misses by C$280M.
• Return on equity of 13.4%, compared to 15.9%
• The provision for credit losses was $638 million, compared to $222 million, an increase of $416 million.
• The provision for credit losses ratio increased 20 basis points to 33 basis points.

• Now Read: Scotiabank: Buy The Drop On This Value Stock

Bank of Montreal (NYSE:BMO) on Tuesday turned in better-than-expected adjusted EPS for the quarter ended Jan. 31, 2023, as revenue climbed both on Q/Q and Y/Y, helped by its Canadian and U.S. personal and commercial banking operations.

Q1 adjusted EPS of C$3.22 (US$2.37), vs. the C$3.16 consensus, rose from C$3.04 in the prior quarter and down from C$3.89 in the year-ago quarter.

Adjusted revenue, net of CCPB, of C$7.29B (US$5.37B), missing the C$7.35B consensus, increased from C$6.91B in Q4 2022 and from C$7.11B in Q1 2022.

“We had a very good start to the year, with continued strong operating performance in our Canadian and U.S. Personal and Commercial businesses and improving momentum in BMO Capital Markets, benefitting from our strategic investments in talent and technology,” said CEO Darryl White.

Total net loans and acceptances of C$559.9B rose from C$564.6B in Q4; customer deposits increased to C$545.1B from C$544.4B in the previous quarter.

Q1 provision for credit losses of C$217M fell from C$226M in the prior quarter and compared with a recovery of C$99M in the year-ago quarter.

Q1 net interest income of C$4.02B rose from C$3.77B in Q4 and was roughly even with Q1 2022.

Noninterest expense dropped to C$4.42B from C$4.78B in the prior quarter and increased from C$3.85B in the year-ago period.

Adjusted return on equity was 13.4% vs. 12.9% in the prior quarter and from 18.8% a year ago.

Canadian Personal & Commercial Banking adjusted net income of C$980M increased from C$917M in Q4 and declined from C$1.00B in Q1 2022.

U.S. P&C adjusted net income was C$699M climbed from $C662M in the prior quarter and from C$682M in the year-ago period.

BMO Wealth Management adjusted net income of C$278M vs. C$298M in the prior quarter and C$316M in the year-ago quarter.

BMO Capital Markets adjusted net income of C$510M rose from C$363M in Q4 and declined from C$712M in Q1 2022.

Adjusted results in Q1 2023 excluded: a loss of C$1.46B related to the management of the impact of interest rate changes between the announcement and closing of the Bank of the West acquisition on its fair value and goodwill, compared with revenue of C$413M in the prior year; acquisition and integration costs of C$181M vs. C$10M in the prior year; C$371M of tax expenses related to certain tax measures enacted by the Canadian government; and a $6M legal provision comprising of interest expense and legal fees related to a lawsuit associated with a predecessor bank, M&I Marshall and Ilsley Bank.

Earlier, Bank of Montreal (BMO) non-GAAP EPS of C$3.22 beats by C$0.06, revenue of C$6.47B misses by C$870M

• Now Read: Bank of Montreal (BMO) Q1 2023 Earnings Call Transcript

Magna announced it is investing more than $470M to expand its operations across Ontario, Canada. The growth includes a new battery enclosures facility in Brampton to support the Ford F-150 Lightning and future OEM programs. In addition to the Brampton facility, Magna is growing in its locations in Guelph, Belleville, Newmarket, Windsor, and Penetanguishene. These expansions follow new business awards from various automakers in key product areas. They are also supported by $23.6M in grants from the Ontario government to bring additional high-quality jobs to the region with ongoing training and development programs for employees. The new and expanded operations are expected to bring more than 1,000 new jobs to Ontario over the next few years.Details of the new and expanding facilities include: Brampton: A new 490,000 square-foot leased facility to manufacture battery enclosures for electric vehicles. Operations to begin in Q2 2023, roughly 560 new jobs are expected at full production. Guelph: Magna is adding e-coat, molding and welding capacity to its exteriors plant to support new electric vehicle production. The expansion will total 120,000 square-feet, and production is planned to begin in Q2 2023. Approximately 175 new jobs are expected. Belleville: Magna’s lighting plant is adding to its capabilities for printed circuit board assemblies and will start operations in Q4 2023. Up to 100 new jobs are expected. Newmarket: Magna’s mechatronics facility which produces vehicle access systems including side door latches, electronic control units, and power systems – is growing its business and expects approximately 75 new jobs. Windsor: Magna’s mechatronics plant adds new business for powered aluminum tonneau covers. The facility has recently started those operations and is planning to add roughly 110 new jobs. Penetanguishene: Magna’s mechatronics facility is growing its tailgate hinges production and more than 15 new jobs are planned.

Enbridge Inc. (ENB) on Friday reported a fourth-quarter loss of $786 million, after reporting a profit in the same period a year earlier.

On a per-share basis, the Calgary, Alberta-based company said it had a loss of 39 cents. Earnings, adjusted for non-recurring costs, came to 46 cents per share.

The results did not meet Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 56 cents per share.

The oil and natural gas transportation and power transmission company posted revenue of $9.89 billion in the period.

For the year, the company reported profit of $2.31 billion, or 98 cents per share. Revenue was reported as $41 billion.

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 Suncor Energy Inc. (SU) on Tuesday reported fourth-quarter earnings of $2.02 billion.

The Calgary, Alberta-based company said it had profit of $1.50 per share. Earnings, adjusted for non-recurring gains, were $1.33 per share.

The results beat Wall Street expectations. The average estimate of three analysts surveyed by Zacks Investment Research was for earnings of $1.26 per share.

The energy company posted revenue of $10.21 billion in the period, also exceeding Street forecasts. Three analysts surveyed by Zacks expected $9.65 billion.

For the year, the company reported profit of $6.98 billion, or $5.02 per share. Revenue was reported as $44.97 billion.

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This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on SU at https://www.zacks.com/ap/SU

 Magna International Inc. reported its fourth-quarter profit fell compared with a year earlier as its sales gained five per cent.

The auto parts company, which keeps its books in U.S. dollars, says it earned US$95 million or 33 cents per share in the quarter ended Dec. 31, down from US$464 million or US$1.54 per diluted share in the last three months of 2021.

Sales totalled US$9.57 billion, up from US$9.11 billion a year earlier.

Magna also raised its quarterly dividend by a penny to 46 cents per share.

On an adjusted basis, Magna says it earned 91 cents per diluted share in the fourth quarter of 2022, down from an adjusted profit of US$1.30 per diluted share in the same quarter a year earlier.

Analysts on average had expected a profit of US$1.02 per share, according to estimates compiled by financial markets data firm Refinitiv.

This report by The Canadian Press was first published Feb. 10, 2023.