RE:RE:RE:Too Cheap To IgnoreWell looks like they're starting with an NCIB...
lazer167 wrote: It all depends what they do with the capital but it makes sense to think they could deploy it and earn a proper return on it when NIMs are this high. At the moment the bank is over-capitalized. Their Tier 1 capital ratio is 11%. I think management will etheir inititiate a dividend or buyback some stock. I would prefer the latter as I believe it would accretive to book value by ~ 50 cents. If the comapny goes back to 10.5% Tier One Ratio, that leaves them $5M to buy back stock. It's the thing that make most sense.
As for AIRB, it is a lengthy and costly process (as you saw in the Q2 results). If I recall correctly, it had a $1.7M impact. If you look at CWB and LB (regional banks), the regulator allows them to have a lower Tier One Capital ratio so it will probably happen but anything with governement is slow.
The good thing is that management wants to create value and regulators appear to be on their side. I mean they approved the merger in order to recap the bank. The bottom line is that this is still a very cheap stock and there is a lot of catalyst on the horizon to unlock some more value.
As an aside, I think it was picked up by a newsletter (Capital Ideas) and so the recent run up could also be a function of retail investors scrambling to buy the thing.