National Bank (TSX:NA) is the smallest of the big six Canadian banks. However, it has been a high performer compared to its peers in the back half of this decade. The stock has achieved average annual returns of 17% over the past three years.
The bank recently announced that it will release its fourth-quarter and full-year results for 2019 on November 5. In the third quarter, National Bank reported net income of $608 million which was up 7% from the prior year. Diluted earnings per share rose 9% year-over-year to $1.66.
The bank reported growth in all its major segments, including a 28% rise in net income in U.S. Specialty Finance and International to $69 million.
Net income in Personal and Commercial Banking climbed 11% to $277 million on the back of mortgage lending and commercial lending growth.
National Bank last increased its quarterly dividend to $0.68 per share. This now represents a 3.9% yield. The bank has delivered nine consecutive years of dividend growth.
Shares of National Bank possessed a price-to-earnings ratio of 11 and a price-to-book value of 1.9 as of late afternoon trading on November 8.
The stock had an RSI of 85 at the time of this writing, putting it well into technically overbought territory. I like National Bank in the long-term, but investors would be paying a steep premium right now. Iām staying on the sidelines until a better entry point presents itself.
