Canadian banks passed through a challenging 2022. The Bank of Canada (BoC) pursued its most aggressive interest rate tightening policy in over a decade. That said, investors should be eager to jump on buy-low opportunities in this dependable space.
Scotiabank (TSX:BNS)(NYSE:BNS) is sometimes called “The International Bank” because of its significant global exposure, particularly in Latin America. Shares of this bank stock have plunged 27% year-over-year as of close on January 5.
This bank released its final batch of fiscal 2022 earnings on November 29, 2022. It delivered adjusted net income of $10.7 billion or $8.50 per diluted share – up from $10.1 billion or $7.87 per diluted share in the previous year. Its shares currently possess a very favourable price-to-earnings ratio of 8.2. Better yet, Scotiabank offers a quarterly distribution of $1.03 per share. That represents a tasty 6.1% yield.
Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is the fifth largest of the Big Six Canadian banks. Its shares have also plunged 27% year-over-year as of close on January 5. The stock is up marginally in the opening trading week of 2023.
In Q4 2022, CIBC saw net income decline 29% from the previous quarter to $1.2 billion. For the full year, its Canadian Personal and Commercial Banking segment reported adjusted net income of $2.39 billion – down 4% from fiscal 2021. Meanwhile, U.S. Commercial Banking and Wealth Management adjusted net income dropped 17% to $810 million.
Shares of CIBC possess an attractive P/E ratio of 8.3. Better yet, it offers a quarterly dividend of $0.85 per share, which represents a very strong 6% yield.
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