BuyOwns a bit of this. Their net interest margins disappointed today. BNS commented that with rising interest rates that customers are transitioning from deposit chequing accounts to GICs, so they don't get that lag time (what banks pay on your bank account vs. what they charge on a mortgage) as rates rise. Canadian banks are great income stocks, but stocks have pulled back on economy fears. Canadian have outperformed US banks. Buy on pullbacks. Are good income investments. The banks won't release provisions, because the economy is slowing. But the banks are still enjoying loan growth. Now is an attractive entry point for a long-term hold. You can start building a position. Valuations are fallen below historic averages, attractive. Balance sheets are strong and dividends are safe in this sector.
Long Dr. BNS