What to Expect From the Canadian Banks Next Week

The Canadian banks are set to serve up the grand finale of earnings season.

Iain Butler

Chief Investment Advisor, Motley Fool Canada Fool since November 2012 Iain Butler, CFA, is Lead Advisor on Discovery Canada 2017. He is also the Chief Investment Advisor for Motley Fool Canada and is the lead advisor on its flagship Stock Advisor Canada product. Before joining the Fool, Iain was a “buy-side” analyst and through this experience is well-versed in the idiosyncratic ways of the Canadian market. His investing interests are centred on scouring the market for interesting businesses that trade at reasonable prices and offer an appealing risk/reward relationship. Since joining the Fool in 2012, Iain dedicates each day to spreading Foolishness throughout this great country!

Published May 17, 2013 6:57 am EDT

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Earnings season is winding down, but for many Canadian investors, the best is yet to come.

Starting with TD Bank (TSX:TD) on Thursday, the Canadian banks will report 2^nd quarter results over the next two weeks. Given the attention that this country’s housing market has recently received from hedge fund types south of the border, this quarter may be more heavily scrutinized than most.

Tabled below are the current consensus earnings estimates and release dates for each of the banks that report over the next two weeks.

Company Name	Exp. EPS	vs. Q2’12	Date
TD Bank (TSX:TD)	$1.91	$1.82	23-May
National Bank (TSX:NA)	$1.98	$1.95	24-May
Bank of Nova Scotia (TSX:BNS)	$1.26	$1.15	28-May
Bank of Montreal (TSX:BMO)	$1.50	$1.44	29-May
Royal Bank (TSX:RY)	$1.30	$1.15	30-May
CIBC (TSX:CM)	$2.06	$2.00	30-May

Source: Capital IQ

Perhaps more important than the past quarter’s earnings will be an indication of what lies ahead. Every ounce of housing related information that the banks release is sure to be magnified and scrutinized by the masses.

Even if the banks report a solid quarter and indicate that housing market is sound there are two things that they can do to really stick it to their doubters.

Either hike their dividends or start buying back stock.

Actions speak louder than words and if any bank is so bold as to undertake either of these initiatives, they are likely to be declared the winner of this earnings round.

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Fool contributor Iain Butler does not own any of the companies mentioned in this report. The Motley Fool doesn’t own shares in any of the companies mentioned.