E216 – Decoding Q1 Canadian Bank Earnings

In this special episode, Sohrab Movahedi, Chris Heakes and Daniel Stanley discuss the first quarter earnings from Canada’s “Big Six,” breaking down the recent results and the macro trends impacting markets. They also examine rising loan-loss provisions and commercial real estate and look back on the U.S. regional banking crisis a year after it began. Daniel Stanley is an ETF Specialist at BMO Global Asset Management. He is joined on the podcast by Chris Heakes, Portfolio Manager and ETF Specialist, BMO Global Asset Management and Sohrab Movahedi, Managing Director, Financials Research, BMO Capital Markets. This episode was recorded on Thursday, March 7, 2024. ETFs mentioned in the podcast: BMO Equal Weight Banks Index ETF (Ticker: ZEB) BMO Covered Call Canadian Banks ETF (Ticker: ZWB) BMO Canadian Bank Income Index ETF (Ticker: ZBI) BMO Canadian Bank Accelerator ETF (Ticker: ZEBA) BMO Equal Weight US Banks Hedged to CAD Index ETF (Ticker: ZUB) BMO Equal Weight US Banks Index ETF (Ticker: ZBK)   ZEB, total returns as at 2024/02/29: 1yr: 2.61%, 3yr: 8.44%, 5yr: 8.41%, 10yr: 9.17%, SI: 10.08% ZBI, total returns as at 2024/02/29: 1yr: 7.13%, 2yr: 1.06%, SI: 0.65% ZAG, total returns as at 2024/02/29: 1yr: -1.77%, 3yr: -2.25, 5yr: 0.56%, 10yr: 1.79%, SI: 2.59% ZUB, total returns as at 2024/02/29: 1yr: -11.38%, 3yr: -4.79, 5yr: 0.65%, 10yr: 4.53%, SI: 5.78% ZUB was up 39.29% from March 17, 2023 to March 7, 2024. Bloomberg and BMO Global Asset Management. Disclosure: Annualized Distribution Yield: This yield is calculated by taking the most recent regular distribution, or expected distribution, (excluding additional year end distributions) annualized for frequency, divided by current NAV. The yield calculation does not include reinvested distributions. Weighted Average Yield to Maturity: The market value weighted average yield to maturity includes the coupon payments and any capital gain or loss that the investor will realize by holding the bonds to maturity. The viewpoints expressed by the Portfolio Manager represent their assessment of the markets at the time of publication. Those views are subject to change without notice at any time. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Investments should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. Any statement that necessarily depends on future events may be a forward-looking statement. Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although such statements are based on assumptions that are believed to be reasonable, there can be no assurance that actual results will not differ materially from expectations. Investors are cautioned not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, investors should carefully consider the areas of risk described in the most recent simplified prospectus. Commissions, management fees and expenses all may be associated with investments in exchange traded funds. Please read the ETF Facts or prospectus of the BMO ETFs before investing. Exchange traded funds are not guaranteed, their values change frequently and past performance may not be repeated. This podcast is for information purposes. The information contained herein is not, and should not be construed as, investment, tax or legal advice to any party. Particular investments and/or trading strategies should be evaluated relative to the individual’s investment objectives and professional advice should be obtained with respect to any circumstance. ®/™Registered trademarks/trademark of Bank of Montreal, used under licence.