Canadian Banks Impress, Except for One

TD Bank (TSX: TD) never disappoints. The company reported strong quarterly results (Q1) and declared a $0.67 dividend. With numbers beating consensus, TD stock has value at these levels.

TD reported earnings of $1.56 on revenue of $9.36 billion. Both beat consensus estimates. More importantly, TD raised its dividend by 12%. The bank signals its confidence in operating with high profit margin and strong risk management. In light of mortgage markets slowing and home prices unaffordable, TD is still fine without that market adding to growth.

Royal Bank of Canada (TSX: RY) reported earnings of $2.01 on revenue of $10.83 billion. It, too, beat consensus estimates. Like TD, Royal raised its dividends by 3%, from $0.91 to $0.94 a share quarterly.

The Bank of Nova Scotia (TSX: BNS) reported earnings of $1.74 a share on revenue of $7.09 billion. The ROE was a solid 16.2 percent, compared with 14.3%. And Scotia raised its dividends by $0.03 a share, to $0.82.

But Bank of Montreal (TSX: BMO) missed consensus by a bit. It reported earnings of $1.94 a share. Revenue rose 7.2% Y/Y to $5.66 billion, beating estimates by $450 million. The good news is that the company will buy back 20 million shares. The bad news is that the dividend will not go up.