The Big 6 Canadian banks (RBC, CIBC, TD, BMO, NB, and Scotiabank) are entering earnings season, with Scotiabank leading the pact, so far, on impressive Q4 results beating estimates. That being said, the names on our list today are other Canadian financial institutions that are trading at a noticeable discount to the Big 6. As a point of reference, the Big 6 are trading at an average Price/Book multiple of 1.6x and an average Price/Earnings multiple of 11.4x.
Canadian Western Bank (TSX: CWB) – $25.18
Banks
Canadian Western Bank (CWB) is a bank offering a range of financial services through more than 40 branch locations in Western Canada. The bank offers Personal banking, Business banking and investing services.
- Market Cap: $2,066,298,931
- Net Income (LFQ): $160,184,000
- P/B: 1.1x
- P/E (LTM): 6.3x
Related: 5 Small Caps with Increasing Earnings, Dividends >>
Home Capital Group Inc. (TSX: HCG) – $32.71
Banks
Home Capital Group Inc. is a Canada-based holding company that operates primarily through its principal, federally regulated subsidiary, Home Trust Company (Home Trust). The Company’s subsidiary offers residential and non-residential mortgage lending, securitization of insured residential first mortgages, consumer lending and credit card services. In addition, Home Trust offers deposits via brokers and financial planners, and through its direct-to-consumer deposit brand, Oaken Financial.
- Market Cap: $2,340,928,718
- Net Income (LFQ): $72,443,000
- P/B: 1.5x
- P/E (LTM): 7.5x
Equitable Group Inc. (TSX: EQB) – $55.75
Consumer Lending
Equitable Group Inc. is a financial services company that operates through its wholly-owned subsidiary, Equitable Bank (the Bank). The Bank provides mortgage loans to a range of customers that include business-for-self borrowers, newcomers to Canada and commercial real estate investors.
- Market Cap: $880,468,723
- Net Income (LFQ): $31,448,000
- P/B: 1.2x
- P/E (LTM): 7.3x
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National Bank of Canada (TSX: NA) – $43.91
Banks
National Bank of Canada (the Bank) is an integrated provider of financial services to retail, commercial, corporate and institutional clients. The Bank offers a range of services that include banking and investment solutions, securities brokerage, insurance and wealth management. The Bank operates in three business segments: Personal and Commercial, Wealth Management and Financial Markets.
- Market Cap: $15,176,152,908
- Net Income (LFQ): $436,000,000
- P/B: 1.5x
- P/E (LTM): 9.9x
Laurentian Bank of Canada (TSX: LB) – $54.75
Banks
Laurentian Bank of Canada is a banking institution whose activities extend across Canada. The Company has four segments, which are the retail and sme-quebec segment, the real estate and commercial segment, the b2b bank segment and Laurentian bank securities and capital markets segment.
- Market Cap: $1,607,671,487
- Net Income (LFQ): $44,166,000
- P/B: 1.0x
- P/E (LTM): 10.4x
