National Bank of Canada (NA.TO)

They are the cheapest of the group because they appear not to have a national platform, even though they do. They are at 1.4 times book value, so are cheap relative to others. The impairments from out west will be minimal. Over the short term it should either hold up with the others or do better.

This has been a dog compared to some of the other financials, and is not a space that looks stellar. There is a little bit of a base being built currently. If it breaks down to the $37 level, there may be something that we don’t know. Doesn’t see a huge catalyst to the upside right now. Dividend yield of 5.2%.

Most banks in Canada have little underlying oil exposure (3% of total loan book). Their energy debt is more connected with larger companies. Earnings and ROEs have been compressed because of corporate and personal loan growth. The BOC could cut rates and that would cut net interest income from the Canadian banks. In 2016, multiple expansion will be constrained in Canada and he thinks there will be better entry points into banks next year. He prefers names with US exposure. NA-T is well capitalized, however.

The group has lagged. She likes the sector, but holds some other names. The equity issue depressed the stock price. It is more Quebec focused, so earnings are more volatile.

Doesn’t follow this very closely. It is difficult enough in this environment to pick out some of the powerhouses amongst the banks. He has been underweight Canadian banks for quite some time. Prefers others.

Spend a lot of time diversifying, but it may have hurt them. It worked when oil was $100 a barrel, but now it is a headwind. They will continue to encounter it. The other banks will have the same headwinds. 5% yield.

He likes this bank. It has traditionally been one of the best banks from an ROE and dividend growth perspective. Has been disliked because there is a perception that it is Québec based and land locked in Québec, which it is not. A very good corporate lender.

Energy concerns have impacted the group. This is less exposed to that geography, but they tend to be more capital markets based. In this past quarter, capital activity has not been as strong. This bank tends to be more capital market sensitive, so lower multiples are generally assigned to companies like this. Her preference is for the banks that have some non-Canadian exposure.

Loves this bank. It was the best performer coming out of the 2008 recession. It was the fastest dividend grower and had the best earnings growth because of its exposure to wealth management and capital markets. This year not so much. It had some trouble with write-downs. It was a surprise that they had assets in Germany.

Thinks Canadian banks are breaking out from a downtrend. However, the only bank that he wouldn’t buy is this one. From a technical point of view they are showing the most weakness. He is not seeing the clear break out that he is seeing in the other banks.

(A Top Pick Dec 17/14. Down 4.06%.) This is not a disaster, it’s just that Canadian banks are unloved at the moment. This is a real buying opportunity.

All the Canadian banks have come under a lot of pressure, but this one has the most exposure, pound for pound, to energy. He is not sure that all the energy exposure has really been priced into the banks. A lot of companies have hedged their energy prices up higher, and those hedges still haven’t rolled off yet. This will be under energy related pressure for at least 6 months.

If you are Buying this today, their exposure to Western Canada is built into the price. This bank has always typically carried somewhat of a higher yield. Have been fairly successful in developing their wealth management area. In the long run they are going to do alright.

He likes the banks. Of the banks, this one is the weakest because they did a share issue a while ago.

An old rule is that you Buy the bank that is down the most and Sell the bank that is up the most. Their payout ratio has gone up and they have the ability to grow the dividend. They had to raise equity and that shocked the street. Dividend yield of 4.78%.