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The banking results season is expected to begin in late November and early December. Canadian bank stocks surged in 2021 thanks to the improving economy. Today I want to review three of my top banks to grab in your portfolio ahead of fourth quarter results. Let’s go.
Don’t sleep on the smallest of the Big Six bank stocks
National Bank (TSX: NA) is a powerhouse in its home province of Quebec, but the smallest of the six major Canadian banks. Its shares climbed 43% in 2021 in the early afternoon of November 1. This banking stock slipped 1.5% week after week.
Investors can expect to see the latest batch of 2021 results from National Bank in early December. In the third quarter of 2021, the bank reported net profit growth of 32% to $ 839 million. Meanwhile, profit rose 51% in the first nine months of the year to $ 2.40 billion. Diluted earnings per share generated year-over-year growth of 56% to $ 6.77 during the year-to-date period.
Similar to its peers, National Bank saw its Personal and Commercial Banking segment experience strong revenue growth thanks to higher revenues and lower provisions for credit losses. Net income for its Wealth Management segment increased 30% year-over-year to $ 165 million. Meanwhile, financial markets rose 21% to $ 227 million.
This bank stock has a favorable price / earnings (P / E) ratio of 12. It last paid a quarterly dividend of $ 0.71 per share, representing a return of 2.7%.
Here is a regional bank that I would tear down at the beginning of November
Laurentian Bank (TSX: LB) is a regional bank based in Quebec. Canada’s regional banks may not catch the attention of the Big Six, but Laurentian is worth owning. In September, I suggested to investors to get hold of these bank stocks. Laurentian shares soared 35% in 2021.
The bank is expected to release its last batch of results for 2021 on December 10. In the third quarter, Laurentian reported adjusted net income of $ 59.0 million or $ 1.25 per share, up from $ 47.1 million, or $ 1.02 per share, the year before. Meanwhile, total revenue increased 3% to $ 254 million.
The shares of this bank stock last had an attractive P / E ratio of 10. It offers a quarterly dividend of $ 0.40 per share. This represents a yield of 3.7%.
Another top banking stock to buy today
Last month I had discussed why TD Bank (TSX: TD) (NYSE: TD) was always one of my top bank stocks to buy on TSX. This bank stock has increased by 25% during the period since the start of the year. Its shares are up 53% from the previous year.
TD Bank will release its fourth quarter and full year 2021 results on December 2. In the third quarter of 2021, the bank also benefited from lower provisions for credit losses, as Canadian Retail’s net income rose 68% to $ 2.12 billion. Meanwhile, US Retail rose 92% to $ 1.29 billion.
This bank stock also has an attractive P / E ratio of 10. It last paid a quarterly dividend of $ 0.79 per share. This represents a yield of 3.5%.