Q: Can I get your thoughts on earnings today. Also would you buy after todays results and where would you rate the bank in the big six
5i Research Answer:
EPS of $3.28 beat estimates of $3.03; revenue of $9.34B beat estimates of $9.00B. The dividend was raised 2.5%. While a 'beat', investors focused on the fact that net income dipped from last year, due to the reversal of a legal provision and a write-off of good will. Provision for losses was $755M, compared with $820M expected. Canadian banking was weaker than expected and this also worried investors somewhat. But, hardly a disaster here. Credit quality remains good. We would be fine buying, though we would rate BMO behind RY, TD and BNS right now.