The stock prices of major Canadian Banks have been under pressure for over a year and recently traded to price/earnings levels last seen in 2009. Analysts have been speculating on the real impact low oil prices could have on the Canadian economy; housing market; and loans issued by Canadian banks. Earnings released in the past two weeks were generally better than analysts expected and the banks appear to have been very forthright about the exposure they have to the energy sector. The Roberts Nash Advisory Group continues to believe that the sector offers exceptional value.
Figures below highlight the composition of National Bank’s loan portfolio as of January 31st, 2016. They were presented as part of the earnings call with analysts on February 23, 2016.
** I have prepared this commentary to give you my thoughts on various investment alternatives and considerations which may be relevant to your portfolio. This commentary reflects my opinions alone, and may not reflect the views of National Bank Financial Group. In expressing these opinions, I bring my best judgment and professional experience from the perspective of someone who surveys a broad range of investments. Therefore, this report should be viewed as a reflection of my informed opinions rather than analyses produced by the Research Department of National Bank Financial **