National Bank of Canada (NA.TO)

6% yield and about 50% payout ratio. This has been punished more than it should have been. This is not one of his top bank picks, but with the yield, it is attractive.

One of the least favoured banks out there. There is a perception that exposure to oil loans is the highest on the street. She doesn’t think the numbers bear this out. This bank has a large proportion of their earnings out of trading, so analysts don’t give it the same kind of a multiple as retail banking. Thinks the dividend of about 6% is sustainable.

Everybody is worried about this bank because of energy loans. They were big lenders to the energy patch over the last couple of years, particularly the midsize and the juniors. He still has confidence they have protected themselves and loaned fairly well. Valuation of the banks is on the level we saw in 2008-2009. Doesn’t expect you will see a big significant write-down.

Just did an equity raise, because of their Maple bank that got shut down in Germany recently, where they took a loss. Thinks the market got a little too fussed about that, as it is not too material for this bank. Just over 7X PE. 5.8% dividend yield. A good stable company that is not going anywhere.

Had some difficulty in the last little while. Their Maple division was closed down by the German government. Also, had to do a big share issue. Has become very good at becoming much more of a Canadian bank, rather than just a Québec bank. Trades at about 7X earnings and 1.27X Book. Very good dividend yield. Management has been very clear on their issues. In the Canadian banks, you have to look at what loan losses are going to look like and any exposure to Calgary. However, buying banks at these levels makes a lot of sense.

Has been cautious about all of the banks as a group. If you are investing personally, everybody should own 3 banks, and one of them should be the one that you bank with. In the Canadian financial sector, he prefers the non-banks to the banks.

Big financial institutions are under a lot of pressure here. Canadian banks are among the most expensive in the world.

Has one of the best yields in the group at 5.4%. In terms of Price to Book it is trading on the lower side. Exposure to the oil sector is a lot stronger than it was 3-4 years ago, but they have been doing well in wealth management, capital markets, etc. A strong capital ratio that is up with the rest of them. Recently increased their dividend.

Not a big fan of Canadian banks and only owns Bank of Nova Scotia (BNS-T), but has cut back on this as well. Canadian banks are vulnerable to a number of issues. This bank in particular has a bigger than average exposure to the energy patch. Canadian banks have headwinds as far as loan exposure to the housing market, consumers and the energy patch. Still too early.

Loves all the Canadian banks. They have recovered in the last few days, which is great to see. Market was pricing in a financial crisis just as bad as 2008, but we are not in a financial crisis. We are concerned with what is going on in oil and with housing prices, but so far these have not materialized on the balance sheets, and the banks keep telling us that they are stress testing and are seeing rising loan losses, but it is not going to be that bad.

CM-T vs. NA-T. CM-T has better value. Is concerned about NA-T’s exposure to the oil patch. CM-T has concentrated more on the retail customer. He does not think we have seen all of the repercussions of low oil prices. The US banks are cheaper, but the currency is more expensive and you get the dividend tax credit on Canadian banks.

Not bullish on the banks, but also is not bearish. You could take a little bit right now. Feels we might see a further correction, so he is a little nervous. Would probably buy a 10^th of what you want.

Has had a higher exposure in the energy patch than some of the other banks. There is nothing wrong with this bank. Dividend yield of 6% which is attractive.

It is a higher beta name. It has had great EPS growth over the last 5 years. Several years ago they cut their dividend and are not out of the penalty box yet. They feel the pressure more than the other banks.

Feels the yield is certainly sustainable. Payout ratio is around 50% so wouldn’t worry from a dividend point of view. Probably the only bank among the larger ones that has tested its 52 week lows already. Quite often that is a good place to be looking to buy. This year people are going to be more worried about loan losses in the banks, particularly if interest rates start to get pulled up. On valuation he thinks the banks are pretty good investments longer-term.