The S&P/TSX Composite Index fell 131 points on Tuesday, July 27. The Financial sector was not spared
as Canada’s top bank stocks have continued to take a hit during this volatile period. Today, I want to
look at two top Canadian bank stocks that are worth monitoring ahead of their third quarter earnings
reports.
Scotiabank (TSX:BNS)(NYSE:BNS) is sometimes called the “International Bank” due to its wide global
reach, particularly in Latin America. Shares of this bank stock have dropped 16% in 2022 at the time of
this writing. That has pushed the stock into negative territory in the year-over-year period.
This bank is set to unveil its third quarter 2022 earnings on August 23. In Q2 2022, Scotiabank delivered
adjusted net income of $2.76 billion or $2.18 per share – up from $2.47 billion or $1.90 per share in the
second quarter of 2021. It continued to deliver solid net income growth in its Canadian Banking
segment. This bank stock possesses a favourable price-to-earnings ratio of 9.1. Better yet, it offers a
quarterly dividend of $1.03 per share. That represents a strong 5.4% yield.
Bank of Montreal (TSX:BMO)(NYSE:BMO) stock has dropped 10% in 2022. Its shares are still up
marginally in the year-over-year period.
BMO is also set to release its Q3 2022 results in late August. Shares of this bank stock last had an
attractive P/E ratio of 6.9. It offers a quarterly dividend of $1.39 per share, representing a solid 4.4%
yield.
I’m gunning for Scotiabank this summer for its nice value and even nicer dividend yield. Now is a great
time to add these bank stocks on the dip.
