Canadian Banks Seen Supported by Earnings Growth, Foreign Capital Flows
Dow Jones09-25
1107 ET - Scotiabank remains bullish on Canada's banks. It reckons Prime Minister Carney's Building Canada Strong plan could help keep foreign capital flows positive both within the financial sector and across the Canadian market more broadly, which would provide further support to TSX-listed bank valuations. The big banks are currently expected to deliver slightly more than 10% EPS growth in 2027, with potential upside, and recent bank management comments on capital markets activity remains positive, Scotiabank says. It argues that even if bank valuation multiples remain near current levels, solid earnings plus the sector's dividend yield should still offer attractive return potential.
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