RE:CM the Top Pick for this Analyst - Likes All CDN Banks - 30%Thanks for the link. Sounds positive, and I agree with his view.
Unfortunately, the markets are still in the fear mode with the latest hawkish stance from the US Fed, but the same thing happened after the Bank of Canada made their decision to hold rates with the option of a further rate hike in Oct.
IMO, once the market realize that this is the final stage of rate increases, and being forward looking, the markets should start to move higher, and so too the Banks.
Loss provisions are behind us, as he mentioned. I believe that even with these provisions in place, not all will be used for loan deliquencies, and when things do turn around, the Banks will be left with a huge windfall of these provisions back on the books.
Wouldn't be surprised if CIBC increases their dividend again sometime next year, once the dust settles.